Endeavor’s Beverly Hills headquarters.

Endeavor’s Beverly Hills headquarters.

Beverly Hills-based entertainment company Endeavor Group Holdings Inc. is looking to raise $511.2 million in its initial public offering.
The company has a valuation of around $10 billion, according to its latest filings with the Securities and Exchange Commission.

Endeavor plans to offer 21.3 million shares priced at $23 to $24. The company is expected to list on the Nasdaq before the end of the year.

Separately, Endeavor said it also plans to raise $1.7 billion in a private placement with several investors, including Chinese technology conglomerate Tencent Holdings Ltd., New York-based firm Elliott Management Corp., and Menlo Park-based private equity firm Silver Lake Partners.

Endeavor said it will use $437 million from the private offering to complete its buyout of mixed martial arts company Ultimate Fighting Championship, better known as UFC. Endeavor already owns 50.1% of UFC, which it acquired in 2016 from Las Vegas-based sports promotion company Zuffa.

Endeavor announced it would resume its quest to go public on March 31, after a failed effort two years ago.

In September 2019, Endeavor backed out of an IPO bid on the day its shares were supposed to hit the stock market, citing weak demand. The company had sought to raise at least $405 million at a valuation of $6.5 billion.

Endeavor was founded in 1995 by Ari Emanuel, the company’s chief executive. Its holdings include talent agency William Morris Endeavor, sports management company IMG, the Miss Universe Organization and art festival Frieze.

In February, after a nearly two-year impasse with the Writers Guild of America West, Endeavor reached an agreement with the union that included a plan to lower its stake in its production company, Endeavor Content, to 20%.

Endeavor saw a net loss of more than $625 million in 2020, and revenue plummeted nearly 24% to $3.48 billion for the year. Amid the pandemic, Endeavor laid off 250 people and top executives Emanuel and Executive Chairman Patrick Whitesell did not take salaries for the year.  

“In a year when the unique ability of content to unite people and elevate important issues was never more apparent, we were proud to do our part in ensuring the most powerful stories were heard while supporting our clients in using their platforms to amplify diverse voices,” Emanuel said in a letter with the SEC filing.

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