- Ari Emanuel’s Endeavor Group Holdings will explore strategic alternatives, which could include a sale.
- The move comes after Endeavor rival CAA agreed to sell a majority stake to French billionaire Francois-Henry Pinault.
- Endeavor said it wouldn’t give up its interest in TKO Group Holdings, which includes WWE and UFC.
Ari Emanuel speaks onstage during the 2017 LACMA Art + Film Gala Honoring Mark Bradford and George Lucas presented by Gucci at LACMA on November 4, 2017 in Los Angeles, California.
Stefanie Keenan | Getty Images Entertainment | Getty Images
Endeavor Group Holdings, the talent agency and sports company led by Ari Emanuel, announced on Wednesday that it will explore strategic alternatives for the organization, including the possibility of a sale.
The stock saw an increase of over 10% in after-hours trading.
“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,” said Ari Emanuel, CEO of Endeavor, in a news release.
This development comes shortly after French billionaire Francois-Henry Pinault agreed to purchase a majority stake in Endeavor’s competitor, Creative Artists Agency (CAA). The deal is reported to be valued at $7 billion.
While Endeavor’s market value stands at $7.79 billion as of the close of Wednesday’s market, it has experienced a decline of 21% this year.
It’s worth noting that Endeavor has no plans to relinquish its interest in TKO Group Holdings, a newly established combat sports company which includes both Vince McMahon’s WWE and Dana White’s UFC. Endeavor currently owns a 51% stake in TKO, which recently went public on the New York Stock Exchange.
–Alex Sherman, CNBC
