May 23, 2019

Ari Emanuel's Endeavor files for IPO

Illustration: Lazaro Gamio/Axios

Endeavor Group, the talent agency and live events company led by Ari Emanuel, filed for an initial public offering on Thursday.

Why it matters: In addition to owning Hollywood's largest talent agency, Endeavor also houses the Ultimate Fighting Championship and Professional Bull Riders, plus a video streaming effort that's signed such clients as World Wrestling Entertainment.

  • Endeavor reports $231 million of profit on $3.6 billion in revenue for 2018. That swings to a $152 million net loss on around $1 billion in revenue for Q1 2019.
  • Its largest segment is sports and entertainment ($2.77 billion in 2018 revenue), followed by representation ($1.3 billion).
  • It plans to trade on the New York Stock Exchange under the ticker EDR
  • Goldman Sachs is the IPO's co-lead underwriter with KKR, which in 2016 helped Endeavor purchase Ultimate Fighting Championship for over $4 billion.
  • The company's other major private equity backer is Silver Lake, although specific ownership stakes weren't disclosed in the IPO filing. We'll get that later.
  • Endeavor didn't disclose how much it plans to raise in the IPO, only listing a $100 million placeholder figure.
  • It plans to use a dual-class stock structure, which would keep the company controlled by Emanuel, Silver Lake and executive chairman Patrick Whitesell.

Emanuel writes in the IPO prospectus:

"Content is no longer defined solely by the traditional categories on which our businesses were founded. Television, movies and live events have been joined by others including podcasts, experiences, social media, multiplayer video games and esports. Wherever you are in the world and whatever way you define content, Endeavor is likely playing a role."

Go deeper: Endeavor no longer looks like the Hollywood talent agency of old

Go deeper

Coronavirus dashboard

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  1. Global: Total confirmed cases as of 5 p.m. ET: 5,936,145 — Total deaths: 358,235 — Total recoveries — 2,389,056Map.
  2. U.S.: Total confirmed cases as of 5 p.m. ET: 1,715,811 — Total deaths: 101,196 — Total recoveries: 391,508 — Total tested: 15,192,481Map.
  3. Public health: The mystery of coronavirus superspreaders.
  4. Congress: Pelosi slams McConnell on stimulus delay — Sen. Tim Kaine and wife test positive for coronavirus antibodies.
  5. Axios on HBO: Science fiction writers tell us how they see the coronavirus pandemic.
  6. 🏃‍♀️Boston Marathon: The race cancels its postponed event, asks runners to go virtual.
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Updated 7 mins ago - Politics & Policy

Trump signs executive order targeting protections for social media platforms

President Trump signed an executive order on Thursday designed to limit the legal protections that shield social media companies from liability for the content users post on their platforms.

What they're saying: "Currently, social media giants like Twitter receive an unprecedented liability shield based on the theory that they are a neutral platform, which they are not," Trump said in the Oval Office. "We are fed up with it. It is unfair, and it's been very unfair."

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Turkey will lift restrictions on intercity travel and allow several public places to reopen June 1, President Tayyip Erdogan said on Thursday, per Reuters.

By the numbers: Nearly 6 million people have tested positive for COVID-19 and over 2.3 million have recovered from the virus. Over 357,000 people have died globally. The U.S. has reported the most cases in the world with over 1.6 million.