Endeavor Group Holdings (NYSE:EDR), the controlling 51% shareholder in UFC and WWE holding company TKO, was up more than 20% in early premarket deals, to $21.52, after it revealed it is mulling "strategic alternatives" that could include a sale or a ‘go private’ deal.
At the same time, Silver Lake – Endeavor’s private equity backer and 71% shareholder – launched its own review of the asset.
Hollywood powerhouse Ari Emanuel, Endeavor's chief executive, is on the record with his view that the stock market undervalues his company.
It comes only weeks after Endeavor acquired WWE and combined it with UFC via the listed TKO vehicle – according to Endeavor, it won’t consider selling interests in the combat sports business.
“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,” Ari Emanuel said in a statement.
Significantly, Endeavor said it doesn’t plan to give up its majority stake in TKO, the recently combined company that houses the WWE and UFC. TKO began trading on the NYSE last month.
The decision to pursue strategic alternatives comes a few weeks after billionaire Francois-Henry Pinault bought a majority stake in Endeavor competitor Creative Artists Agency in a $7 billion deal.