Endeavor Group Holdings, the parent company of high-profile brands like UFC, WWE, WME, and IMG, has reported a significant loss for the first quarter of 2024. The Q1 loss is pronounced with a nearly $400 million decline in cash on hand from the previous quarter. This financial situation emerges as Endeavor prepares to transition from a publicly traded entity to a privately held company under the ownership of private equity firm Silver Lake. The acquisition, at $27.50 per share, is expected to finalize by Q1 of 2025. Endeavor, which consolidates the earnings of TKO Group Holdings, also suffered due to a hefty $335 million charge from a legal settlement related to TKO’s antitrust case with former UFC fighters. Despite the downturn, Endeavor experienced a revenue increase to $1.8 billion for the quarter, largely attributed to the strategic merger of UFC and WWE. However, a decline in earnings was observed across its events, experiences, rights and sports data divisions. The company’s adjusted EBITDA stood at $374.1 million while net income saw a staggering loss of $303.5 million. As of March 31, 2024, Endeavor had a cash reserve of $778.6 million alongside a total debt of $5.010 billion. The company, led by CEO Ariel Emanuel, is focusing on its operational momentum while navigating towards the completion of the buyout agreement with Silver Lake, opting out of a Q1 earnings call due to the imminent transaction.

Entertainment and Media, Private Equity, Legal Services,United States

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