As Endeavor continues to find its footing following an unsuccessful IPO in September 2019 and the business impact of the coronavirus pandemic, it is looking to sell its minority stake in video game developer Epic Games, according to The Information.
The sale could net Endeavor upwards of $100M, which would be a much needed boost for the company. Last month, Endeavor announced its plans for a series of layoffs and furloughs that would affect roughly one-third of its 7,500 employees worldwide.
It is also reportedly trying to raise $250M that will go toward basic company functions, such as payroll and rent, according to the New York Post. Endeavor and WME IMG have taken credit rating and outlook dings from S&P Global and Moody’s Investors Services in recent weeks.
Epic Games, best known as the publisher of Fortnite, is in the midst of trying to raise money at a $15B valuation. While the popularity of that game has slightly waned, the company announced it has now eclipsed more than 350M registered players. In April alone, Fortnite gamers played more than 3.2B total hours. Last month, rapper Travis Scott hosted a concert within the game drawing more than 12M concurrent players.