Speculation for the last several months has been plentiful that Endeavor "is in trouble," but execs at the Beverly Hills-based holding company "say none of it is true," according to Perman & Lee of the L.A. TIMES. The chatter has "reached a fevered pitch in recent days amid murmurings that the feared and powerful firm was being restructured at the bidding of its powerful private equity overlords." Rumors indicated that CEO Ari Emanuel was to be "cordoned off to one corner" and that his partner, Exec Chair Patrick Whitesell, "would take over the talent business; or that the company would be sold for parts or file for bankruptcy." But Endeavor President Mark Shapiro denies that these plans for a reorganization or bankruptcy are "anything more than talk." Perman & Lee note while the entire industry has taken a hit, Endeavor is "particularly vulnerable" because it has "built an empire out of a disparate set of entertainment, media and sports assets amassing billions in debt, betting on the idea that live events were a growth opportunity." But that wager in the time of a global pandemic has "left Endeavor exposed." Despite the uncertainties, Shapiro said that Endeavor is "well-positioned for the recovery." He added that Endeavor has "taken steps to reduce costs to 'fund our operations and service our debt'" and that private equity firm Silver Lake, which owns a 51% stake in the business, is "strongly committed to the company." Endeavor yesterday disclosed that it had raised $260M in a "debt offering, mainly from the investment firm Oaktree Capital" (L.A. TIMES, 5/12).
