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Endeavor forced to withdraw IPO, leaving UFC owners with "bad reputation"



Endeavor Group Holdings Inc., the parent company of Ultimate Fighting Championships (UFC), hoped to raise over $ 600 million at its initial public offering (IPO) on Friday, with share prices landing somewhere in the 30- $ 32 on

Instead, they will raise the white flag.

That's because demand for the stock is "lower than predicted," according to Deadline, which Endeavor tried to overcome by dropping its IPO to $ 26-27 per share. That equates to a $ 200 million hit for owner Ari Emanuel, which ultimately wasn't enough.

"This is a blow for Ari. It definitely damaged his reputation, "Los Angeles-based investment banker Lloyd Greif told L.A. Times. "It will be interesting to see what happens next. They will have to figure out how to access the capital markets. "

Endeavor did not abandon its plans to publish publicly, but cited" market conditions "as the culprit behind Thursday's hurried release. Undoubtedly, the disastrous debut for Peloton Interactive Inc., which dropped 11 percent in its first day, made Emanuel the second to make his big debut.

For now, Endeavor – which bought the UFC for $ 4 billion in 2017 – will need to develop a new strategy to pay off its bloated debt. Maybe it's time to launch a combat sports facility and finish $ 3 billion in black?


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