Endeavor Purchases UFC 100%, Faucets Elon Musk For Board

ABU DHABI, UNITED ARAB EMIRATES – JANUARY 21: UFC President Dana White interacts with media throughout the UFC 257 Press Convention inside Etihad Enviornment on UFC Battle Island on January 20, 2021 in Yas Island, Abu Dhabi, United Arab Emirates. (Photograph by Chris Unger/Zuffa LLC through Getty Photographs)

In response to a latest SEC submitting, UFC guardian firm Endeavor might be buying 100% of the UFC. As soon as Endeavor purchases UFC formally, the MMA promotion might be wholly owned by the expertise company Endeavor, previously WME | IMG, and the corporate is planning to go public with a brand new IPO.

Endeavor Purchases UFC

In July 2016, it was introduced Endeavor might be buying 50.1% of the UFC from the Zuffa-owned Fertitta brothers. This gave the expertise company a controlling stake. In response to the March 31, 2021 Securities Alternate Fee submitting, see prospectus, Endeavor may have a deal quickly to lift $1.75 billion to purchase out the remaining 49.9% of the UFC earlier than its Preliminary public providing (IPO) and its inventory goes public. A spokesperson for the UFC has declined to touch upon this transaction.

In 2016, when Endeavor initially bought the UFC, it did so for the value tag of $4 billion. To boost that a lot funds the corporate partnered with different personal fairness corporations, comparable to Silver Lake Companions and Elliott Administration, for instance, these fairness corporations personal round 40 % of the UFC due to this.

In response to the SEC submitting, Endeavor generated $3.48 billion and reveals a web lack of $625.3 million in 2020. Income was greater than $1 billion decrease in comparison with 2019 numbers, probably resulting from pandemic shutdowns.

Endeavor CEO Ari Emanuel stated within the filed prospectus on 2020, “As difficult a 12 months as 2020 was, it underscored the energy, creativity, and resilience of our individuals who mobilized time and time once more within the face of overwhelming odds … We made tough choices however labored as a staff to search out inventive options and greatest place the enterprise for the long run …

“As the worldwide pandemic unfolded, we developed the protocols mandatory to assist our companies safely restart operations, offering a mannequin for different skilled sports activities, occasions, and applications. UFC and PBR have been two of the primary sports activities organizations to responsibly return final spring, and we adopted in the summertime by internet hosting the WNBA’s season at IMG Academy. Within the fall, we introduced New York Vogue Week to life, turning into one of many first main occasions to renew in New York Metropolis.”

This story was initially reported by ESPN’s Marc Raimondi who stated, “It’s unclear what Endeavor proudly owning the entire promotion would imply, if something, for the UFC.”

Endeavor initially did start submitting proceedings for an IPO in 2019 however scrapped these plans resulting from weak demand, as reported by CNBC. The corporate will probably be public and buying and selling on the inventory market in late 2021. Endeavor owns subsidiaries Zuffa (UFC), IMG (expertise company), Skilled Bull Driving, and bought Miss Universe from Donald Trump in 2015.

Elon Musk Joins Board of Administrators

Along with the above announcement, Elon Musk has been nominated to affix Endeavor as a part of their board of administrators, one among 11 administrators of the corporate. Musk is the CEO of Tesla, SpaceX, founding father of The Boring Firm, Neuralink, and PayPal.

Musk is listed as a director nominee on the SEC submitting.

Mr. Musk was chosen to serve on our board of administrators due to his skilled background and expertise working a public firm, his beforehand held senior executive-level positions, his service on different public firm boards and his expertise beginning, rising and integrating companies,” Endeavor stated in its SEC IPO submitting.

CNBC provides, “Buyers in Endeavor, together with Elliott Administration and Silver Lake Companions, confirmed that the nomination of Musk is just not an April Idiot’s prank, regardless of the proximity of the corporate’s S-1 submitting date to April Fools’ day, which is Thursday.”

What this buy means precisely for the UFC and the game as an entire has but to be seen. Elon Musk’s affect is unknown as of now; he nonetheless has but to be formally elected. The transaction doesn’t instantly say something concerning the way forward for the UFC. No official bulletins have been made out of the UFC or Endeavor places of work but.

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