Endeavor IPO Delay Sends Shockwaves Through Agency Business

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As Endeavor grew from a small startup to a worldwide entertainment conglomerate, it cultivated a reputation for limitless ambition and ruthless competition. So when the company withdrew its public …

grew from a small startup to a worldwide entertainment conglomerate, it cultivated a reputation for limitless ambition and ruthless competition.

Leaving the company may not be so simple — many clients could prove more loyal to the agency than to their agents. And industry sources speculate that WME will move to compensate those who took stock in lieu of cash to avoid defections. It’s also possible that the company could arrange a liquidity event through private equity partners.

The guild has been campaigning to undermine Endeavor’s public listing, and claimed victory on Thursday, issuing a statement saying that IPO investors were scared off by the agency’s conflicts of interest. The battle continues to be fought in federal court, with no obvious resolution on the horizon. The rebuff from Wall Street could curb some of the company’s growth plans, in the short term. The company had hoped to raise $546.8 million in fresh equity, of which about $500 million would have been used to pay down debt. Faced with soft demand, Endeavor cut its price range on Thursday morning from $30-$32 per share to $26-$27 per share. That would have meant the offering would have raised $361.6 million.

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Endeavor lowers its IPO price range ahead of its market debutEndeavor, the owner of WME-IMG and UFC, has lowered the price range of its shares ahead of its much-anticipated initial public offering You’re a talent agent and you have a duty to put your clients first — how is that compatible with being a shareholder-owned company. Get real.
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