Endeavor is reviewing strategic alternatives, but their stake in WWE is not expected to be affected.
On October 25, Endeavor announced a formal review to evaluate strategic alternatives in a press release. As part of the review, Endeavor will not consider the sale or disposition of their interest in TKO Group Holdings, the company formed by the merger between WWE and UFC.
The press release noted that Endeavor has not set a deadline or definitive timetable for this process, and the outcome is unclear.
Brandon Thurston of Wrestlenomics, Endeavor and TKO CEO Ari Emanuel sent an email to staff about the review. In it, he noted that the intent is to ensure that Endeavor is maximizing value for shareholders. Emanuel also stated that Endeavor believes there is a disconnect between their public market value and the “intrinsic value of its underlying assets.”
Per Thurston, Endeavor had hoped their share price would improve in the aftermath of the WWE/UFC merger. However, shares have declined since the TKO merger was completed in September.
Thurston also noted that Silver Lake, a major shareholder in Endeavor, is working on taking the company private. This move would not directly affect TKO.
WrestleZone will provide more information as it becomes available.
