Sunday, January 23, 2022

Endeavor Reaches Agreement To Take Over 100% Ownership Of The UFC

Endeavor will go from owning 50.1% of the UFC to 100% after an agreement finalized today has the talent agency taking over full controlling interest of the promotion.

Wednesday, a 300-page prospectus revealed that Endeavor has agreed to take control of the UFC. There will be an IPO (Initial public offering) later this year to help the agency finance the buyout. The other 49.9% of the UFC is currently owned by Silver Lake and KKR investment firms. There is no reason to believe this buyout will affect Dana White’s role as UFC president, as was the case when the Fertitta Brothers sold the promotion in 2016.

It was also revealed that Tesla CEO Elon Musk has been nominated to join the new board of directions. Here is a portion of the prospectus that describes the agreement:

“On February 16, 2021, Endeavor Operating Company entered into a Transaction Agreement with the Other UFC Holders and certain of their affiliates pursuant to which Endeavor Operating Company will directly or indirectly acquire equity interests in UFC Parent (including warrants of UFC Parent or common equity received by warrant holders from the exercise of warrants of UFC Parent) from the Other UFC Holders (or their affiliates) resulting in Endeavor Operating Company directly or indirectly owning 100% of the equity interests of UFC Parent (the “UFC Buyout”).

“We currently own 50.1% of UFC Parent’s common equity and have consolidated UFC Parent’s financial results from the date of the UFC acquisition in 2016.”

You can pull up a chair, grab some coffee and a red bull and read the full 300-page prospectus here.

Keep it locked here on for any further details on this agreement and how it may impact the UFC going forward.

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