While the company isn't necessarily a household name, Endeavor Group Holdings (EDR) is the parent company of several high-profile entities, including the mixed martial arts league Ultimate Fighting Championship (UFC), the William Morris Talent Agency, and the Miss Universe pageant.
Endeavor is scheduled to begin trading on the New York Stock Exchange today using the ticker "EDR." The stock was priced at $24 at the high-end of the company's range of $22 to $24 per share. The company will offer 21.3 million shares and raise roughly $511 million from the offering. Endeavor will also pocket an additional $1.35 billion from a concurrent private placement with institutional investors. This will value the company at about $6 billion.
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The company already has big plans for some of the proceeds. Endeavor currently controls just over 50% of the UFC but will spend $437 million to purchase the remaining part of the league it doesn't already own.
The year 2020 was a tough one for both the entertainment industry and live sports as the result of the pandemic, which was evident in Endeavor Group's results. For the year ended Dec. 31, 2020, the company reported revenue of $3.48 billion, down 24% year over year. For context, Endeavor delivered 26% growth in 2019. The bottom line suffered as well, as Endeavor generated a net loss of $655 million, worsening from a loss of $554 million in 2019.
It's also worth noting that Endeavor's balance sheet is loaded down with roughly $5.9 billion in long-term debt and just over $1 billion in cash. The imbalance is the result of several audacious acquisitions over the past decade. This includes the $2.3 billion it paid for the sports, fashion, and event agency IMG in 2014 and the majority stake it acquired in UFC in 2016.
