Endeavor Files With SEC To Go Public

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Endeavor Group Holdings – the parent company of WME – filed a Form S-1 with the Securities and Exchange Commission today (May 23) in order to register and make an initial public offering, which would mark the first major talent agency to be traded publicly. The company intends to list on the New York Stock Exchange under the symbol EDR after completing an internal reorganization.

The filing, which has been expected for some time, also revealed that Endeavor, headed by CEO Ari Emanuel, generated $3.61 billion in revenue in 2018 and net income of $231.3 million, adjusted net income of $100.1 million, and adjusted EBITDA of $551.1 million. Endeavor says it represents more than 60% of the headliners of major music festivals in the U.S.,  according to the filing. The company said it also represents various elements of more than 300 TV series across broadcast, cable and streaming. Altogether Endeavor works with more than 6,000 clients including entertainers, content creators, athletes, sports institutions and style icons. 

“Beginning with the formation of the original Endeavor talent agency in 1995; our merger with the venerable William Morris Agency to form WME in 2009; and the acquisition of media, sports and fashion leader IMG in 2014; followed by a series of organic growth initiatives, digital investments, strategic partnerships, joint ventures and acquisitions, most notably UFC in 2016, we have built a platform that we believe is incredibly difficult to replicate by any other company,” Endeavor states in its registration documents.

“As the demand for content continues growing, developing new distribution channels to complement our clients’ creative needs is essential,” writes Emanuel in a CEO’s Letter. “We’ve built a series of businesses across streaming, audio, experiences, gaming and education to ensure our clients and Endeavor are well-positioned for whatever the entertainment landscape looks like in the coming decades.

“The trust that some of the world’s most influential creators and visionaries have placed in us to help guide their careers is both a privilege and a responsibility. Every decision we’ve made since those early days reflects our commitment to amplify their influence and maximize their economic potential. Our unique platform enables them to connect with each other and our IP and owned assets in ways that are far more meaningful than if approached in isolation.

“As the entertainment industry moves toward a closed ecosystem model with less transparency, our clients and businesses need more insight, resources and solutions than ever before. We believe being a public company will only further accelerate our ability to look around corners and open up new categories and opportunities for those in the Endeavor network,” Emanuel wrote.

As a public company, Emanuel continues, Endeavor will continue “navigating the ever-evolving definition of content;” cultivate connections across platforms in advancing decision making; advocate on behalf of clients, embrace diversity, inclusion and equality across the board; and define “success based on long-term growth and innovation, not short-term gains.”

Of concern, at least to the Writers Guild of America, the filing was made a day after major Hollywood agencies agreed to resume talks over a new franchise agreement, which has been the source of acrimony for months. WME was one of the majors sued by the WGA, which alleges illegal conflicts of interest in collecting packaging fees.