Endeavor Group Stock Is In The Spotlight Thursday: What's Going On?

Endeavor Group Holdings Inc EDR shares are soaring Thursday after the company announced a review of strategic alternatives.

What Happened: Late Wednesday, Endeavor announced plans to look into strategic alternatives in an effort to maximize value for shareholders. 

Endeavor did not provide a timetable or set a deadline for the completion of the review process. The company did note that it will not consider selling its interest in TKO Group Holdings, Inc. TKO was formed earlier this year to bring the UFC and WWE together in one integrated organization.

"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," said Ariel Emanuel, CEO of Endeavor.

Shortly after Endeavor made the announcement, major shareholder Silver Lake said it's considering taking the company private. Silver Lake controls approximately 71% of Endeavor's voting power. 

"Silver Lake is currently working toward making a proposal to take Endeavor private. Silver Lake firmly believes in Endeavor's business and is not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor," Silver Lake said in a press release. 

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EDR Price Action: Endeavor Group shares were up 21.3% at $21.50 at the time of writing, according to Benzinga Pro.

Photo: PublicDomainPictures from Pixabay.