Future Endeavor

Endeavor has had a rough couple of months as live sports and movie productions shut down, but the agency’s future appears to be looking up. UFC’s return has helped generate cash, and it recently sold movies and comedy specials, according to The Information. With the good news, the company reportedly has started to bring back previously furloughed employees.

Last month, the company also secured a $260 million term loan and recently sold a piece of its stake in Epic Games for $100 million. However, several long-term concerns that existed before the pandemic still loom large.

For much of the past decade, the company was aggressive in its acquisitions – including its part acquisition of UFC in 2016 for $4.025 billion, as well as the debt that remained from the merger between WME and IMG. When the company filed for its unsuccessful IPO last year, its $4.6 billion in debt was made public. The pandemic has caused revenue to drop 70%, and Endeavor was forced to lay off, furlough, or issue pay cuts to a third of its employees.

While this year’s drop in revenue certainly won’t help, there’s still optimism around the company. Private equity firm Silver Lake Partners has made more than $2 billion in unrealized profit from its investments in the company, and in 2019 Endeavor reportedly had its best revenue year ever. Endeavor could continue to sell off additional assets, and it also might make another go at an IPO once the coronavirus subsides.