Endeavor is finalizing a deal to own the UFC fully. Initially, the media company owned a 50.1% stake in the mixed martial arts organization. Now, they’re pulling for full ownership.
According to reports, Endeavor will soon own 100% of the UFC. Also, that Tesla CEO Elon Musk will join Endeavor’s board of directors.
Endeavor on Owning the UFC
As noted by the New York Post, the acquisition of “Buying out the remainder of UFC makes for a better investment.” A person with insider knowledge also spoke to the Post, explaining the UFC value and why Endeavor wants to own it completely.
“Why didn’t Endeavor do this before? It didn’t think it needed to,” the source said to the New York Post. “It was a potential thing they considered. They thought they would just go public and it would be fine. It’s not going to be that hard, right? They realized the rest of the company is not worth as much.”
The person also stated that the UFC’s value is currently in the $6 to $10 billion-dollar range and is still growing. This is due to the UFC’s ability to continue operating throughout the global pandemic, where other companies ceased operations.
Maneuvering During the Pandemic
Endeavor heavily relies on the world of entertainment to be profitable. The company has its hands in live sporting events, fashion, film, and TV. However, all of those industries had to operate in less capacity. Or not function at all while the world tried to figure out working safety protocols during the pandemic.
The post also said the UFC accounted for nearly 80% of Endeavor’s earnings in the year 2020, which makes wanting full ownership of the company a no-brainer decision.
How do fans believe the UFC will operate once it is wholly owned by Endeavor? Or, will there not be much of a difference?