Endeavor Group Holdings, the owner of the Ultimate Fighting Championship (UFC), has set its sights on Tesla CEO Elon Musk as it plans to go public after a failed attempt in 2019.
Musk, who is also the CEO of SpaceX, has been nominated to join the board of directors at Endeavour, the entertainment company which owns the UFC as well as talent agencies William Morris and IMG.
Endeavour, which is backed by Hollywood power broker Ari Emanuel, recently revealed in a regulatory filing on Wednesday that Musk is currently a director nominee as part of a bigger plan to go public on the New York Stock Exchange under the symbol “EDR.”
So, what does it all mean?
The company posted revenue of $3.48 billion and a net loss of $625.3 million last year, in comparison to revenue of $4.57 billion and a loss of $530.7 million the year beforehand.
According to UFC president Dana White, the promotion played its part in transforming its parent company’s fortunes in 2020, breaking financial records despite others suffering under the strain of the economic uncertainty surrounding the pandemic.
Per the filing, Endeavor has said that it will raise $1.7 billion from several existing and new shareholders to buy out the remainder of the UFC.
Endeavour have also filed an IPO of up to $100 million, as per the filing, although that is subject to change via the terms of the agreement.
The decision to go public could in turn be used to raise capital to fund expansion, wipe off debts, reinvest in the business and recruit more assets.
However, while this could have a positive impact, it may be some time yet before fans get confirmation of such a deal.
Whether this will have a knock-on effect in regards to fighter pay, meanwhile, is another matter entirely.