Endeavor's stock surges 25% after Silver Lake announces plans to take entertainment company private
By Claudia Assis
Investors are not valuing Endeavor correctly, company says
Shares of Endeavor Group Holdings Inc. surged 25% in the extended session Wednesday after private-equity giant Silver Lake said it was looking to take the sports and entertainment company private.
Silver Lake, which owns about 71% of Endeavor's (EDR) voting stake, said in a statement that it "firmly believes in Endeavor's business and is not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor."
The news came shortly after Endeavor said it was looking for a "strategic alternatives review" for itself as investors are not valuing it correctly.
"Given the continued dislocation between Endeavor's public market value and the intrinsic value of Endeavor's underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders," Chief Executive Ariel Emanuel said in a statement announcing the review.
That review won't include options for its publicly traded TKO Group Holdings Inc. (TKO), which Endeavor formed in April in a $21.4 billion merger that combined sports icons Ultimate Fighting Championship and World Wrestling Entertainment.
There's no "deadline or definitive timetable" for the completion of the review, Endeavor said.
So far this year, Endeavor shares have lost 22%, which contrasts with a 9% advance for the S&P 500 index SPX.
-Claudia Assis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
10-25-23 1836ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
How to Measure a Stock’s Uncertainty
-
How to Determine Whether a Stock Is Cheap, Expensive, or Fairly Valued
-
Why a Company’s Management and Capital Allocation Matter
-
How to Determine What a Stock Is Worth
-
How to Measure a Company’s Competitive Advantage
-
How to Think Like a Stock Analyst
-
How GLP-1 Drugs Like Ozempic Are Boosting Biopharma Stocks