We've Got Hollywood Covered

Endeavor Lowers Estimated Share Price, Reduces Volume Available Ahead of IPO

Company starts trading on Friday

One day before it goes public, Endeavor lowered its expected share price and reduced the volume of shares it’s making available, the company said in an SEC filing on Thursday.

The entertainment and talent management company is lowering the estimates on the share price to $26-$27 a share, down from a previous estimate $30-$32 per share. Endeavor has also reduced the number of shares for sale to 15 million, from 19.4 million.

“We estimate that the net proceeds from this offering will be $361.6 million (or $419.3 million if the underwriters exercise their option to purchase additional shares in full),” the filing said. Last week, Endeavor said that it planned to raise as much as $712 million through its IPO by offering shares at $3o to $32 apiece.

Endeavor, led by CEO Ari Emanuel and executive chairman Patrick Whitesell, will begin trading Friday on the New York Stock Exchange under the ticker EDR.

Endeavor had planned for its IPO to list this summer. That, however, was pushed in August to accommodate the company’s acquisition of live-events company On Location Experiences LLC for as much as $700 million.

Endeavor is the combination of sports, events, fashion and talent-management IMG and the agency WME. WME purchased IMG in 2014 for $2.3 billion. WME itself was the combination of the legendary William Morris Agency and Endeavor.

The new Endeavor purchased the UFC in 2016. It also owns Miss Universe and the Professional Bull Riders tour. In 2017, Endeavor launched Endeavor Content, which it says has financed and/or sold more than 100 films and TV shows in the time that has followed.

In the company’s 150 plus-page prospectus filed in May, Endeavor reported that it generated $3.61 billion in revenue in 2018, and had a net income of $231.30 million after two years of losses (Endeavor had a net loss in 2016 of $98.32 million followed by a net loss of $173.16 million in 2017).

As of March 31, the company said it had $499.71 million in cash and cash equivalents, as well as $9.89 billion in total assets. Endeavor’s total long-term debt tallies $4.62 billion.