Update On WWE's Future Amidst Endeavor Possibly Going Private

Will WWE be affected by Endeavor potentially going private?

Major changes look to be on the horizon for WWE owner Endeavor following the announcement that the organisation is pursuing "strategic alternatives." Endeavor's majority owner Silver Lake has since announced they are working on a proposal to take Endeavor private

Endeavor looking into "strategic alternatives" stems from the belief that Wall Street undervalues the company's stock. It was hoped that separating UFC from Endeavor and moving it to TKO Group in a merger with WWE would improve Endeavor's stock price, although that has not been the case. 

The announcement this week has improved matters, with Endeavor's stock rising 25 percent to $22.26 on Thursday. 

Although changes for Endeavor appear to be coming, Ari Emanuel stated in an email to staff that nothing will be changing with TKO Group or WWE. 

Emanuel wrote (H/T Brandon Thurston of Wrestlenomics): 

"Today, Endeavor announced that it has begun a formal review of strategic alternatives. No other company has a global portfolio like Endeavor -- across sports, entertainment, fashion, live events, and premium experiences. Still, Endeavor believes there is a disconnect between its public market value and the intrinsic value of its underlying assets.

"Given that, Endeavor has decided to evaluate strategic alternatives to ensure it is maximizing value for EDR shareholders. As part of this review, Endeavor will not consider the sales or disposition of its interest in TKO. Endeavor has not set a deadline or definitive timetable for the completion of the process and there's no guarantee of any specific outcome.

"We do not anticipate any changes to your day-to-day, and we will share more information when the need arises."

Endeavor owns 51 percent of TKO Group following the merger between WWE and UFC earlier this year.  

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Aidan Gibbons

Written by Aidan Gibbons

Editor-in-Chief of Cultaholic.com Twitter: @theaidangibbons