Endeavor Says It’s Evaluating Strategic Alternatives As Stock Continues To Founder – Shares Pop On The News
deadline.comEndeavor Group said today it has initiated a formal review to evaluate strategic alternatives for the company. It didn’t offer details, but it did say the review “will not consider the sale or disposition of the company’s interest TKO Group,” the parent of WWE and UFC that is majority (51%) owned by Endeavor. “Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders,” said CEO Ariel Emanuel.
Endeavor’s acquisition of WWE this year and airing it with UFC to create the publicly traded TKO was designed to boost Endeavor’s share price by putting a market value on its most valuable asset.
But the move has proved disappointing. Endeavor’s stock closed at $17.72 today, just pennies above its 52-week low. The shares did jump by a hefty 26% in after-market trading on news of the strategic review.
TKO shares launched on the NYSE Sept. 12 at well over $100. They closed today at $78.64 (rising 2% in the after market). WWE and UFC both have rights deals heading towards expiration and despite the popularity of their programming have been taking longer than expected to reup.
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