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Endeavor Group Holdings IPO: What You Need To Know

Endeavor Group Holdings IPO: What You Need To Know

An entertainment company that specializes in talent management is part of the IPO slate of the week.

The IPO Terms

Beverly hills, California-based Endeavor Group Holdings, Inc. has filed with the SEC to offer 19.355 million shares at an estimated price range of $30-$32 per share.

At the mid-point of the estimated price range, the size of the offering is about $600 million.

The company has applied for listing its shares on the NYSE under the ticker symbol "EDR."

Goldman Sachs, KKR, JPMorgan, Morgan Stanley and Deutsche Bank Securities are the lead managers for the offering. The issue will be co-managed by Barclays, Citigroup, Credit Suisse, RBC Capital Markets, UBS, Evercore ISI, Jefferies and HSBC.

Endeavor had initially filed for an IPO in May this year but had postponed it in light of an acquisition it was negotiating.

The Company

Endeavor is a global entertainment, sports and content company that creates value for its clients through talent representation, content development, content distribution and sales, event management, marketing and licensing and providing direct-to-consumer offerings.

Endeavor was originally founded as a talent agency in 1995, and through its merger with William Morris Agency it formed WME in 2009. It acquired media, sports and fashion leader IMG in 2014.

The company said in the S-1 filing that it has represented more Academy Award and Grammy winners than any other talent agency, as well as some of television's most prolific creators. It also claims to be a primary content provider to broadcast and cable networks.

Endeavor sells media rights globally in over 160 countries on behalf of more than 150 clients such as the International Olympic Committee, National Football League, National Hockey League and Premier League, as well as its owned assets including UFC, PBR and Miss Universe.

The Finances

For the fiscal year ended Dec. 31, 2018, Endeavor raked in revenues of $3.61 billion and net income of $231.3 million. This compares to revenues of $3.02 billion and a net loss of $173.17 million the company reported for its fiscal year 2017.

Endeavor reported revenues of $2.049 billion for the six months ended June 30, up about 37% year-over-year. The net loss for the period narrowed from $475.61 million to $220.30 million.

Related Links:

A Halftime Report Of The IPO Market In 2019

IPO Outlook For The Week: A Talent Agency, A Lender And Peloton


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