Endeavor exploring "strategic alternatives" TKO not being affected

[Chris]

Endeavor Group Holdings could be positioning itself for a sale.

Company CEO Ari Emanuel was quoted in an Endeavor press release on Wednesday announcing the initiation of a formal review to evaluate strategic alternatives for the company.

“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders,” Emanuel said.

The strategic alternatives could potentially include the company being sold. However, today's press release specifically mentioned Endeavor will not consider selling its interest in TKO Group Holdings, the company created via the WWE and UFC merger earlier this year. Endeavor holds a 51% stake in the company.

"As part of this review of strategic alternatives, the Company will not consider the sale or disposition of the Company’s interest in TKO Group Holdings, Inc."

"Endeavor has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any particular outcome. The Company does not intend to comment further regarding the review of strategic alternatives until it determines disclosure is necessary or advisable."

Brandon Thurston posted an email sent to Endeavor staff regarding the news.

The email reads:

Today, Endeavor announced that it has begun a formal review of strategic alternatives. No other company has a global portfolio like Endeavor -- across sports, entertainment, fashion, live events, and premium experiences. Still, Endeavor believes there is a disconnect between its public market value and the intrinsic value of its underlying assets. Given that, Endeavor has decided to evaluate strategic alternatives to ensure it is maximizing value for EDR shareholders. As part of this review, Endeavor will not consider the sales or disposition of its interest in TKO. Endeavor has not set a deadline or definitive timetable for the completion of the process and there's no guarantee of any specific outcome. We do not anticipate any changes to your day-to-day, and we will share more information when the need arises.

The news comes shortly after billionaire Francois-Henri Pinault announced he was purchasing a majority stake in rival Hollywood talent agency, CAA.

https://www.f4wonline.com/news/wwe/endeavor-to-explore-strategic-alternatives-stake-in-wwe-unaffected

 

[Butters]

Vince about to buy it all.

 

[Roy Mustang]

So basically more budget cuts and likely some big names leaving because they know they can get better money elsewhere. Fits with the fiteful report the other day about contract extensions

 

[Canadian Dragon]

So basically more budget cuts and likely some big names leaving because they know they can get better money elsewhere. Fits with the fiteful report the other day about contract extensions

What did that report say?

 

[Roy Mustang]

What did that report say?

Several top stars, have not been approached for contract extensions. There have been a few negotiations here and there, but usually with talent who approach WWE for raises.

 

[Kross Rhodes]

Where is says disposition of its interest does that mean there’s a possibility they might just sell their 51% to the TKO holdings itself and then it would just be its own company while still owning UFC and WWE?

 

[Canadian Dragon]

Several top stars, have not been approached for contract extensions. There have been a few negotiations here and there, but usually with talent who approach WWE for raises.

so are they saying Becky Lynch hasn't been approached for an extension?

 

[Roy Mustang]

so are they saying Becky Lynch hasn't been approached for an extension?

Doesn't say who tbf but I think Drew McIntyre is a known one for sure

 

[Canadian Dragon]

Doesn't say who tbf but I think Drew McIntyre is a known one for sure

interesting. Got a feeling gonna be a lot of movement between both companies in 2024

 

[Chris]

Where is says disposition of its interest does that mean there’s a possibility they might just sell their 51% to the TKO holdings itself and then it would just be its own company while still owning UFC and WWE?

I think the opposite actually, Endeavor might sell the rest and just be TKO? Basically the same thing but they seem to be specifying they will not be shopping TKO at all in this

 

[Butters]

TNA about to scoop up all these wwe/aew people.

 

[Kross Rhodes]

I think the opposite actually, Endeavor might sell the rest and just be TKO? Basically the same thing but they seem to be specifying they will not be shopping TKO at all in this

Oh, OK. That makes a little bit more sense since they just merged the TKO company. Though I am a little unsure of what else they do outside of being the parent holding company of TKO that would be worth selling.

 

[Kross Rhodes]

TNA about to scoop up all these wwe/aew people.

That would be a godsend. They need some name power.

 

[Chris]

Oh, OK. That makes a little bit more sense since they just merged the TKO company. Though I am a little unsure of what else they do outside of being the parent holding company of TKO that would be worth selling.

They're a talent agency, represent a lot of people. Not sure what else, and technically they "gave up" UFC to TKO when the merger happened so they're not under Endeavor like before

 

[Kross Rhodes]

They're a talent agency, represent a lot of people. Not sure what else, and technically they "gave up" UFC to TKO when the merger happened so they're not under Endeavor like before

Oh right. Because the WWE people had to have 49% of that too to make the merger happen.