UFC owners Endeavor Could Go Public This Year
According to a Wall Street Journal article published on Mar. 29, Endeavor, the parent company of the UFC, has started the process of making the company public on the stock market.
Endeavor is expected to file paperwork with the U.S. Securities and Exchange Commission (SEC) soon for an initial public offering (IPO) later this year, and stocks in the company would be sold to the general public for the first time.
When a company goes public, it is required by law to disclose matters such as its financial condition, financial condition, operating results, and management compensation. This would mean the UFC’s financials could be made public for the first time ever.
Many companies, when going from private to public for the first time, use an IPO to raise capital and the potential for owners to sell off shares, causing a financial windfall.
Endeavor is valued around $4 billion according to the Wall Street Journal, but that number could increase by the time the company officially goes public.
Endeavor, formerly WME-IMG, purchased the UFC from Zuffa for $4 billion after UFC 200 in July 2016. The company was originally started by Ari Emanuel and Patrick Whitesell as a Hollywood talent agency before branching out and purchasing organizations such as the UFC and Professional Bull Riders (PBR).
Endeavor originally had a $400 million partnership with Saudi Arabia, but it returned the money to the country and cut ties following last year’s murder of journalist Jamal Khashoggi.
Original Story: MMA Weekly