UFC Owner Files For IPO, Wants To Expand Operations

William Morris Endeavor Entertainment LLC, the global entertainment, sports and content company that owns the Ultimate Fighting Championship (UFC) and the Miss Universe Pageant, among others, will go public this year.

Endeavor filed its S-1 with the U.S. Securities and Exchange Commission (SEC) Thursday. Ari Emanuel’s company will list on the New York Stock Exchange under the ticker symbol “EDR.” No date has been set for the IPO, however.

The number of shares Endeavor plans to offer and the price range for the offering have not been disclosed. Endeavor plans to raise $100 million in the IPO. Analysts said the $100 million figure is a placeholder companies typically use before later disclosing the actual figure.

Endeavor said the IPO proceeds will go towards working capital and general corporate purposes.

Its S-1 shows Endeavor reporting revenues of $3.6 billion and a net income of $231.3 million in the year ended Dec. 31, 2018.

There are concerns Endeavor’s going public might affect operation of UFC. Endeavor has been a privately-held firm known for its secrecy since it was formed in 2009 by the merger of WMA and the Endeavor Talent Agency.

This penchant for privacy has extended to revenue and fighter payouts, which will likely become public knowledge as part of a publicly traded company.

Endeavor bought UFC from Las Vegas casino magnates Lorenzo and Frank Ferttitta in 2016 for more than $4 billion. UFC is a major part of Endeavor's portfolio, earning record revenue over the past few years.

UFC signed a five-year U.S. rights deal with ESPN in 2018. This deal was later extended to seven years in March with the addition of pay-per-view distribution on ESPN+.

Endeavor hinted at an expansion of its operations in its S-1 filing, as well as more transparency.

“Content is no longer defined solely by the traditional categories on which our businesses were founded,” said the Endeavor filing.

“Television, movies and live events have been joined by others including podcasts, experiences, social media, multiplayer video games and e-sports. Wherever you are in the world and whatever way you define content, Endeavor is likely playing a role.”

In its filing, Endeavor noted that as the entertainment industry “moves toward a closed ecosystem model with less transparency, our clients and businesses need more insight, resources and solutions than ever before.”

“We believe being a public company will only further accelerate our ability to look around corners and open up new categories and opportunities for those in the Endeavor network.”