Shares of Endeavor Group Holdings Inc. surged more than 12% in the extended session Wednesday after the sports and entertainment company said it was looking for “strategic alternatives” for itself as investors are not valuing it correctly.
“Given the continued dislocation between Endeavor’s EDR, -1.99% 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.
The review won’t include options for its publicly traded TKO Group Holdings Inc. TKO, -2.31%, which Endeavor formed in April in a $21.4 billion merger that combined sports icons Ultimate Fighting Championship and World Wrestling Entertainment.So far this year, Endeavor shares have lost 22%, which contrasts with a 9% advance for the S&P 500 index SPX.