Markets

Endeavor pulls plug on IPO day before debut

Key Points
  • Global entertainment, sports and content company Endeavor Group Holdings abandoned its IPO plans Thursday due to weak stock market demand.
  • Earlier Thursday, the company scaled back its offering in a Security and Exchange Commission filing.
  • The company, Hollywood's biggest talent agency owner, was hoping to raise more than $600 million.
BEVERLY HILLS, CA- 062713- Ari Emanuel, Co-CEO, William Morris Endeavor, (L) Patrick Whitesell, Co-CEO, William Morris Endeavor and David Droga, Founder and Creative Chairman, Droga5 pose for photos at the headquarters of William Morris Endeavor in Beverly Hills, CA.
J.Emilio Flores | Corbis News | Getty Images

Global entertainment, sports and content company Endeavor Group Holdings abandoned its IPO plans Thursday due to weak stock market demand.

Endeavor was expected to begin trading on Friday on the New York Stock Exchange under the symbol "EDR." Goldman Sachs was listed as the IPO's lead banker, according to the company's S-1 filing.

The company, Hollywood's biggest talent agency owner, was hoping to raise more than $600 million. It's the latest black eye for the IPO market, as investors see companies as overpriced. Peloton Interactive had a disappointing debut earlier Thursday, following the disappointing debuts of Lyft and Uber earlier this year and the WeWork cataclysm of the past month.

The difficult market environment for such high profile IPOs was seen as a negative for the broader market.

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Endeavor scaled back its offering in a Security and Exchange Commission filing Thursday, saying that it expected to debut the price of its shares between $26 to $29, which is below the $30 to $32 range it estimated last week.

"Based on an assumed initial public offering price of $27.00 per share (the highpoint of the estimated public offering price range set forth on the cover page of this prospectus), we estimate that the net proceeds from this offering will be $361.6 million (or $419.3 million if the underwriters exercise their option to purchase additional shares in full), after deducting underwriting discounts and commissions and estimated offering expenses payable by us," the SEC filing said.

Endeavor describes itself as being "home to the world's most dynamic and engaging storytellers, brands, live events and experiences."

The company includes entertainment agency WME; sports, fashion, events and media company IMG, and premier mixed martial arts organization UFC. It specializes in talent representation, marketing and licensing and event management, among other things.

"Content is no longer defined solely by the traditional categories on which our businesses were founded," the company wrote in its S-1 filing. "Television, movies and live events have been joined by others including podcasts, experiences, social media, multiplayer video games and e-sports. Wherever you are in the world and whatever way you define content, Endeavor is likely playing a role."

An IPO has been rumored since Ari Emanuel and Patrick Whitesell merged their talent agency with sports and modelling agency IMG in 2013. Since then, Endeavor has acquired the Ultimate Fighting Championship, professional bull riders, the Frieze Art Fair and marketing agency 160over90.

Emanuel is a brother of former Chicago Mayor and Obama aide Rahm Emanuel.

CNBC's Sarah Whitten contributed to this report.

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