Endeavor will continue to evaluate the timing for the proposed offering as market conditions develop. 

Citing hazardous market conditions, Endeavor Group Holdings Inc., the owner of talent agency WME-IMG and the UFC, has canceled plans for its initial public offering, reversing course the day before its stock was expected to begin trading on Wall Street. The retreat came as Endeavor, run by CEO Ari Emanuel, appeared to rethink plans amidst concerns that investors were cool on the stock and given the weakening of the broader IPO market. 

Earlier in the day, Endeavor lowered the targeted price range of its shares and the number of shares, from 19.4 million shares at an initial price of $30-$32, to 15 million shares at an initial price of $26-$27, representing a drop in expected total from $600 million to $400 million. The company carries long-term debt totaling $4.6 billion with total liabilities of $7.2 billion and cash on hand of $830.9 million, and analysts had expected the IPO to among other things bring down the debt load.

Emanuel built his reputation and that of Endeavor on a series of bold, risky moves and unexpected acquisitions, including Professional Bull Riders. The IPO was his biggest gamble to date, intended to catapult Endeavor into a global juggernaut, one that would shape the future of media and entertainment. Now that is all on hold.

This is a blow for Ari, said Los Angeles investment banker Lloyd Greif to Ryan Faughnder for the LA Times. It’s definitely damaged his reputation. It will be interesting to see what happens next. They are going to have to figure out how to access the capital markets. … The devaluation today was too little, too late.”