A Year After IPO, Endeavor Defies Doubters, but Pressure for Profit Will Only Grow (Column)

variety.com:

Cynthia Littleton Business EditorAs Endeavor marks the first anniversary today of its debut on the New York Stock Exchange, the company deserves credit for doing a lot of things right.The stock has stayed above its IPO price of $24 for most of the past 12 months.

The company has generated enough topline revenue gains amid tough economic conditions to demonstrate that its divisions have room to grow.But in other ways, the company led by Ari Emanuel looks to become harder to sell in the future if Endeavor wants to stay a public entity.

Its high debt, stratospheric CEO compensation package and corporate structure with a handful of controlling shareholders is out of step with the expectations of many institutional shareholders and governance watchdogs.

Indeed, Wall Street’s appetite for unicorns that rack up losses and debt in the hunt for revenue and market share seems to be waning, just as the number of business-debacle TV series rises (think “WeCrashed,” “The Dropout,” “Superpumped”).The past two weeks have marked a turning point — or maybe a bursting point — for the content bubble that has enveloped entertainment.