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COVID-19 Finds Endeavor Looking to Raise Capital

Amid the Coronavirus pandemic, Hollywood powerhouse Endeavor is one of the talent agencies struggling to financially meet is obligations to its employees, clients and investors.

As recently reported by the New York Post, Endeavor is looking to raise $250 million to offset some of the financial windfall suffered from the agency’s entertainment-business properties, including the UFC.

Endeavor purchased a 50.1% share of the UFC in 2016 for a record $4 billion. This share is held in the UFC’s parent company, Zuffa. Also holding shares in the UFC is Silver Lake Partners, which also owns a share of Endeavor.

Endeavor also owns stakes in IMG, the PBR and talent agency William Morris Endeavor.

Agency head Ari Emanuel has turned to the agency’s largest stakeholder, Silver Lake, which operates in the private equity space, to help raise capital to allow the agency to operate under its usual course of business.

This news comes on the heels of an announcement in which Endeavor stated that it would have to eliminate or furlough 2,500 employees or approximately 1/3 of its workforce. Many of those employees will also be transition from full-time workers to part-time workers. The Post reported that this move is expected to save Endeavor around $100M.

This news is a further blow to Endeavor which has suffered its share of mishaps as of late. The powerhouse agency had originally intended to go public, with an IPO slated for September 2019. This move was eventually axed, and it was revealed that Endeavor was carrying approximately $4.6 billion in debt.

As sports and the entertainment industry making their return in the coming weeks and months, hopefully agencies hit hard by Coronavirus related economic impact, such as Endeavor, can rebound and restore many of the jobs lost.