Endeavor Group Holdings, under the leadership of the influential talent agent Ari Emanuel, has disclosed its contemplation of selling off certain assets. This decision was announced on Wednesday as Endeavor initiated a “formal review to assess strategic options for the company.”
Ari Emanuel, Endeavor’s CEO, articulated the rationale behind this move, saying, “Given the continued disparity between Endeavor’s market valuation and the true value of its underlying assets, we see exploring strategic alternatives as a judicious step to ensure our shareholders benefit to the fullest.” Over the past six months, the stock of this sports and entertainment conglomerate has experienced a substantial decline, plunging by more than 30%. However, there was a noteworthy resurgence in Endeavor’s shares during after-hours trading on Wednesday, with an increase of over 11%.
Endeavor boasts ownership of prominent entities such as the global sports agency IMG, the art media enterprise Frieze, and WME, a talent agency representing celebrities like Dwayne “The Rock” Johnson and Matt Damon.
In its announcement, Endeavor explicitly conveyed that the review would not encompass the sale or disposal of its interest in TKO Group Holdings. Earlier this year, Endeavor, the parent company of the mixed martial arts giant UFC, merged with World Wrestling Entertainment to establish TKO Holdings. TKO Holdings is primarily owned by Endeavor, with Ari Emanuel serving as its CEO. In response to this development, shares of TKO Holdings, which trades as a distinct public entity separate from Endeavor, saw a nearly 2% surge during after-hours trading on Wednesday.
Endeavor’s decision to initiate a strategic review emerges less than two months after French billionaire Francois-Henri Pinault acquired a majority stake in CAA, a rival talent agency to WME.