What’s up?

These days, IPOs are everywhere. Endeavor Group Holdings Inc., the parent company of talent agency WME, was the last to file for IPO. So far, there’s no information about the number of offered shares and the target price range. The offering will likely take place at the end of the year.

Why is it important?

In general

Endeavor also owns UFC, an American mixed martial arts promotion company, Miss Universe contest, and IMG, an international modeling agency. All of these are interesting things and worth considering as an investment.  

For investors

Here are some financials for you to ponder: Endeavor’s revenue jumped last year by 19.6% to $3.61 billion, while net income equaled to $231.3 million. In 2017, the company lost $173.2 million, so it’s a change for the better. According to the Financial Times, the holding was valued at $6.3 billion in 2016. The Wall Street Journal reports that the firm may be aiming for $10 billion after the offering.  

The holding’s main sources of income come from its entertainment and sporting units. In other words, it’s earning money by creating or licensing content. For instance, it financed more than 100 movies through its Endeavor Content unit. In addition, Endeavor still greatly depends on its business of representing actors, athletes, etc. All in all, the holding has been actively growing during recent years by acquiring the assets mentioned above.

The market has awaited Endeavor’s decision to conduct an initial public offering for some time already. There are all reasons to expect that investors will show decent interest in the stock.

After IPOs, the trading starts. Stocks can be traded as CFDs at eToro.