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The parent company of UFC Endeavor will not be open to the public on Friday, September 27 as originally scheduled.
The entertainment conglomerate led by Ari Emanuel and Patrick Whitesell had already lowered the price of their shares for the first public offering from $ 30 to $ 32 per share to $ 26 to $ 27 per share, while also reducing the total number of shares. actions that would be released.
Now, Endeavor has completely removed its IPO from its planned release this week. The news was first reported by The Wall Street Journal.
"Endeavor will continue to evaluate the timing of the proposed offer according to changing market conditions," the company said in a statement released on Thursday.
This news comes after the concerns of many Wall Street analysts who have questioned the long-term viability of Endeavor, which seemed to scare many investors.
The UFC, which is currently the most profitable company that operates under the umbrella of Endeavor, still has to deal with a volatile revenue source controlled by pay-per-view television in a superstar sport.
At least some of these concerns have been appeased thanks to a seven-year contract signed with ESPN that will bring in hundreds of millions of dollars, while signing a contract with the Disney-owned company to manage pay-per-view activities for l & # 39; UFC. .
Nevertheless, the UFC is also involved in a lawsuit with several veterans that could significantly harm their brand and financial results, according to the verdict.
Add to that, Endeavor is battling an ongoing battle with the Writers Guild of America regarding television conditioning contracts that have left many writers in Hollywood with a bad taste. This has led to a split between many writers and the Hollywood agency and this battle is still being prosecuted.
After buying the UFC for just over $ 4 billion in 2016, rumors began that Endeavor was already considering becoming public, but it took almost three years for this initiative to materialize.
The IPO plan was to raise more than $ 600 million, with the bulk of this money being used to pay off existing debt, the rest being used as operating capital for the company. When the stock price was changed and the total number of shares offered, Endeavor reported less than $ 400 million, which was a significant change from the initial expectations of the IPO.
Endeavor's successful IPO seems to confirm that stock concerns were real and trading on opening day could have hurt society more than it would help. For now, there is no word to know when and if Endeavor will reschedule the IPO.
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