Global sports and entertainment giant Endeavor Group Holdings (EDR.N) said on Wednesday it has begun a formal review to evaluate strategic alternatives for the company, but would not consider the sale or disposition of its majority interest in TKO Group Holdings (TKO.N), which includes Ultimate Fighting Championship.
Shares of Endeavor were up 9% in extended trading.
The company has not set a deadline for the completion of the review process, it added.
The announcement comes after French luxury goods billionaire Francois-Henri Pinault acquired a majority stake in rival Creative Artists Agency, in a deal that reportedly valued the talent agency at $7 billion.
Endeavor Group, which has diversified holdings including a talent-management business, live sports events and an interest in festivals, is valued at around $8.4 billion. The company's chief executive, Ari Emanuel, has long said Wall Street undervalues the company.
“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders,” Emanuel said in a statement.
Endeavor Group and Boston Red Sox owner Fenway Sports Group had expressed interest in investing in the PGA Tour, according to a source familiar with the negotiations, Reuters reported in late September.
