Endeavor Group Holdings files for IPO

03 June 2019  |  TRADING IDEAS

Endeavor is a global entertainment, sports and content marketing company. They provide a range of marketing and event management services, owning and producing more than 700 events annually across 25 countries, such as international fashion weeks, art fairs, lifestyle festivals and more. The company files to go public in NASDAQ market under the symbol “EDR”. Endeavor was selected be one of the “25 Most Important Private Company” in the world by Fortune Magazine in 2016.

The company was established by CEO Ari Emanuel in 1995, and since then the company has made dozens of acquisitions, including merging with William Morris Agency (WMA) in 2009 and acquiring IMG in 2014 to form this global leading entertainment agency Endeavor.

The William Morris Agency (WMA) was the first Hollywood-based talent agency. It represented some of the world’s best-known actors, actresses and directors and producers, such as Charlie Chaplin, Tim Allen, Rob Bowman and more.

IMG is a global leader in sports, events, media and fashion. The company represents and manages some of the world’s greatest sports figures and fashion icons; stages hundreds of live events and branded entertainment experiences annually; and is one of the largest independent producers and distributors of sports media.

Endeavor generates revenue in a variety of ways, including media rights sales, sponsorships, subscriptions, license fees, ticket sales, profit participations, profit sharing, pay-per-view programming, commissions and strategic consulting fees, data streaming fees and tuition.

Let’s examine some of its businesses in detail.

Event Management

Endeavor manages more than 700 events annually around the globe, including sporting events covering 20 sports across 25 countries, international fashion weeks, art fairs and music, culinary and lifestyle festivals.


Endeavor provides a full range of entertainment content development services for creators of premium television programs, documentaries, feature films and podcasts seeking greater ownership. The company has financed and operated more than 100 shows and films, including “La La Land”. The company also produces live sports competition and editorial video content for leading sports properties through WWE.

Financial Data for Endeavor

The company keeps on high growth of its revenue although the net income is still in red.

The Company has three operating and reportable business segments: Entertainment & Sports, Representation and Endeavor X.

Entertainment & Sports contributed 62.3% of revenue to the whole business.

The US contributed most to revenue by geographic area. Revenue from UK soared in 2018 due to the acquisition of sport and entertainment industry, Clifford French.

Pursue Strategic Mergers and Acquisitions

The company has successfully completed a number of strategic acquisitions that have expanded their business. Since 2015, Endeavor has completed 7 mergers and acquisition. In addition, the company has started to expand its business in China to set up a subsidiary company, Endeavor China under a strategic partnership with Sequoia Capital China, a venture capital and private equity firm, Tencent Holdings Limited, a provider of media, entertainment, internet and mobile services in China, and affiliates of FountainVest Partners, a China-focused private equity firm.

Future Business

According to market research firm Technavio (“Technavio”) and PwC’s E&M Outlook, the global subscription television industry (including over-the-top (“OTT”) services) and the film industry are expected to grow at a blended 4% CAGR from $293 billion in 2017 to $350 billion by 2022. 

The global sporting events industry is projected to grow from $161 billion in 2018 to $180 billion by 2021 at a 4% CAGR, according to Technavio.

At this fast growing market, we should keep an eye at the industry leader, especially this IPO is seems to be broadly welcomed by the markets.

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The original article was published by Stockclip, Inc. on 25/05/2019.

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