Report: UFC owners at Endeavor expected to take the company public in late 2019
For the first time in history, the UFC may have the inner workings of its financial business made public.
On Friday, the Wall Street Journal reported that Endeavor, the parent company to the UFC, have started moving towards taking the company public on the stock market.
According to the report, Endeavor is expected to file confidential paperwork with the Securities and Exchange Commission (SEC) for an initial public offering (IPO) later this year.
An IPO is used when a private company goes public for the first time with many businesses using it to raise additional capital as well as the potential for the owners in the business to sell off their own shares, which usually results in a financial windfall. Basically it means the company selling its stock to the general public for the first time.
There have been rumors about Endeavor going public ever since the company spent just over $4 billion to purchase the UFC in 2016.
Previously known as WME-IMG, the company started out as a Hollywood talent agency launched by mega-agent Ari Emanuel and his partner Patrick Whitesell. Eventually, the company started branching out with purchases such as the Professional Bull Riders as well as buying the UFC.
Endeavor had originally partnered with Saudi Arabia for a $400 million investment in the company but they returned the money on the heels of the murder of journalist Jamal Khashoggi last year.
Now it appears Endeavor will raise additional funds to continue growing the company through the initial public offering.
Current valuation on Endeavor is around $4 billion according to the Wall Street Journal but the listing could exceed that once the company prepares to go public.
Once a company officially goes public and sells stock, financial disclosures are required by law including their financial condition, operating results, management compensation, and other areas of their business.”
As a privately owned company, the UFC has never opened up their books to reveal the financials behind the business but assuming Endeavor goes public, that would all change going forward.