Endeavor (NYSE: EDR), the parent company of UFC (Ultimate Fighting Championship), recently went public on April 29, 2021. The initial public offering is raising the hopes of many investors who have been straining at the leash to catch a piece of the UFC, that is now a multi-billion dollar business, action. MMA fans can now get a piece of UFC stock.
I have been a huge fan of the UFC for nearly 25 years, which is oddly enough about the same time I started investing, which has me very excited to finally invest in the company. It is now possible for them to buy Endeavor stock through any recognized online brokerage like Robinhood, and become part owners of the enterprise that runs UFC.
Being an MMA fan of the UFC and investors are two different things. To make stuff more complicated, investors are investing in the UFC parent, Endeavor. In this article, I will cover the basics of the company and stock.
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Can I buy UFC stock?
UFC is a privately held company but is largely owned by Endeavor Holdings that recently went public New York Stock Exchange (NYSE) in Apr 29 2021 under the symbol EDR. EDR stock is currently trending lower, but I have seen this happen to many stocks right after an IPO. It would a good stock to keep an eye on.
What is the Ultimate Fighting Championship (UFC)?
Founded by Art Davie, David Isaacs, Bob Meyrowitz, Rorion Gracie, Campbell McLaren, and John Milius in 1993, UFC organizes, arranges, produces, and hosts martial arts events around the globe. It has a roster of fighters that is among the most celebrated in the business. Some of the famous names on the roster being Anderson Silva, Jon Jones, and Conor McGregor.
Deals with media organizations like ESPN have boosted the popularity, and revenues, of UFC. Since 2001, UFC has been led by Dana White, currently designated as president of the organization. His reported net worth is about $500 million.
Till recently it was not possible to invest in the UFC growth story, as it was a property of a privately held company. With its parent, Endeavor Group Holdings, now going public, it is now traded on NYSE and can be bought and sold like the many other stocks listed there.
Endeavor began trading on the 29th of April, 2021, a Thursday, under the symbol ‘EDR.’ Shares of endeavor have opened at $24, which is the top of their range. Tesla CEO Elon Musk is one of the well-known figures among the board members of the newly public company.
Earlier bid to go public in 2019
Once earlier Endeavor had prepared for an IPO, which was as anticipated then as it was now, but had pulled out at the last minute, citing weak market conditions. This was in 2019. The decision may also have been influenced by the lackluster debut performance of recent IPOs, at that time, like Lyft and Uber.
To their credit, they had made efforts to spark interest by even lowering the price band from the original $32 – $35 to $26 – $29.
UFC Parent – Endeavor Group Holdings Inc.
Endeavor Group Holdings, Inc. operates through a group of companies that are owned by Endeavor Group. In conjunction with sports properties like UFC and Europeleague, the owners earn significant growth through new deals in intellectual property protection or exclusive live events. The Représence segment also provides services for talent and corporate clients and incorporates a Content division. The UFC was established in 1995 and is located in Beverly Hills – California. It has offices at New York Fashion Week and Hyde Park Winter Wonderland New York and Los Angeles Fashion.
Urbanfund Corp.’s focus includes residential and commercial properties. The company was founded on 4 February 1997 with its headquarters in Toronto. Urbanfund is a real estate developer and operator, which operates the Real-estate portfolio and also owns and develops.
Endeavor Group and Ari Emanuel
UFC is not the only property the Endeavor Group owns. Miss Universe and IMG are also properties of the group. Silver Lake Partners, the part-owner of UFC, is also a substantial investor in Twitter. Along with Facebook, Silver Lake Partners has also invested in India’s Jio Platforms.
Ari Emanuel is the CEO of Endeavor, UFC’s holding company. He also holds a significant stake in the company. The success of Endeavor and its franchises is reflected in the net worth of Ari Emanuel, estimated at $450 million.
Endeavor stock IPO going through would have resulted in a big payout for him. He was offered a raise in salary from $1 million to $4 million in addition to a bonus and award of stock if the IPO stock performed well.