Endeavor Group is looking to sell some of its stake in Fortnite publisher Epic Games as it seeks to raise much-needed funds during the coronavirus pandemic.
According to multiple reports in the US, the owner of agency giant IMG and the Ultimate Fighting Championship (UFC), among other properties, is hoping to offload a portion of its minority stake in Epic Games, which itself is gearing up for a fundraising round that could see the company valued at well over its prior valuation of US$15 billion.
Endeavor’s portfolio of media, sports and entertainment assets, including a host of live events businesses, has been hit particularly hard by the Covid-19 crisis. In recent weeks, the group – led by chief executive Ari Emanuel (pictured) – has been forced to make sweeping furloughs and cut executive salaries as part of cost-saving measures that could affect one-third of its 7,500 employees worldwide.
After pulling its anticipated initial public offering (IPO) last year due to stock market destabilisation and lukewarm investor interest, Endeavor has been actively seeking emergency funding to survive the coronavirus pandemic, while it has also seen its debts spiral and its credit rating downgraded.
Bloomberg reports that while the company is not looking to sell any of its major properties, such as the UFC or talent agency WME, it is working to ‘dispose of non-core assets, in particular those that can reap a healthy return.’
While the size of Endeavor’s holding has not been reported, the sale of its minority stake in Epic Games – which owns the Houseparty video chatting and gaming app as well as the hugely popular Fortnite title – could raise as much as US$100 million, according to a report by the Information.
News of the potential sale comes with Epic Games having experienced a surge in demand for its games and services since the Covid-19 outbreak forced economies around the world into lockdown.
According to the company’s latest figures, Fortnite now boasts more than 350 million registered users, with more than 3.2 billion hours played on the game in total during the month of April alone.
Endeavor Group is looking to sell some of its stake in Fortnite publisher Epic Games as it seeks to raise much-needed funds during the coronavirus pandemic.
According to multiple reports in the US, the owner of agency giant IMG and the Ultimate Fighting Championship (UFC), among other properties, is hoping to offload a portion of its minority stake in Epic Games, which itself is gearing up for a fundraising round that could see the company valued at well over its prior valuation of US$15 billion.
Endeavor’s portfolio of media, sports and entertainment assets, including a host of live events businesses, has been hit particularly hard by the Covid-19 crisis. In recent weeks, the group has been forced to make sweeping furloughs and cut executive salaries as part of cost-saving measures that could affect one-third of its 7,500 employees worldwide.
After pulling its anticipated initial public offering (IPO) last year due to stock market destabilisation and lukewarm investor interest, Endeavor has been actively seeking emergency funding to survive the coronavirus pandemic, while it has also seen its debts spiral and its credit rating downgraded.
Bloomberg reports that while the company is not looking to sell any of its major properties, such as the UFC or talent agency WME, it is working to ‘dispose of non-core assets, in particular those that can reap a healthy return.’
While the size of Endeavor’s holding has not been reported, the sale of its minority stake in Epic Games – which owns the Houseparty video chatting and gaming app as well as the hugely popular Fortnite title – could raise as much as US$100 million, according to a report by the Information.
News of the potential sale comes with Epic Games having experienced a surge in demand for its games and services since the Covid-19 outbreak forced economies around the world into lockdown.
According to the company’s latest figures, Fortnite now boasts more than 350 million registered users, with more than 3.2 billion hours played on the game in total during the month of April alone.
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