Shares of WWE and Endeavor Group have stabilized after a $100 million investment by Saudi Arabia’s Public Investment Fund in the Professional Fighters League. Despite recent declines, analysts see this as a compelling opportunity for investors.
| Shares of WWE and Endeavor Group have steadied after two days of sharp declines.
| The decline was triggered by news of a $100 million minority investment by Saudi Arabia’s Public Investment Fund in the Professional Fighters League (PFL).
| Despite the decline, analysts see this as a compelling opportunity for investors.
| Morgan Stanley analyst Benjamin Swinburne noted that UFC is the world’s most popular MMA league and competition is not new.
| Guggenheim analysts also view the new league as “the minor leagues” and remain bullish on the pending combination of WWE and Endeavor.
| Bank of America, however, is more cautious about the new competitor, stating that the Saudi investment introduces a new overhang for both Endeavor and the product of the UFC/WWE merger.
WWE and Endeavor Group Shares Stabilize
Shares of WWE and Endeavor Group have steadied after two days of sharp declines. The decline was triggered by news of a $100 million minority investment by Saudi Arabia’s Public Investment Fund in the Professional Fighters League (PFL), a mixed martial arts competitor for WWE and Endeavor’s UFC. WWE shares fell more than 12% on Thursday, following a 5% drop on Wednesday when news of the Saudi investment leaked. However, the stock has rebounded slightly, up 2% in Friday morning trading. Endeavor Group, on the other hand, experienced a nearly 10% decline between Wednesday and Thursday, but has seen a small increase of less than 2% on Friday morning. The market’s reaction reflects the disruption that the Saudi-backed LIV Golf venture presented to the PGA Tour, according to Morgan Stanley analyst Benjamin Swinburne. The golf leagues devolved into lawsuits as players attempted to move between them, and the contention only ended with the two organizations agreeing to combine in June. Despite the decline, analysts see this as a compelling opportunity for investors. Morgan Stanley analyst Benjamin Swinburne noted that UFC is the world’s most popular MMA league and competition is not new. He believes the investment in the rival league will not impact UFC or WWE financials in the near future and is unlikely to affect WWE’s upcoming renewals. Guggenheim analysts also view the new league as “the minor leagues” and remain bullish on the pending combination of WWE and Endeavor. Bank of America, however, is more cautious about the new competitor, stating that the Saudi investment introduces a new overhang for both Endeavor and the product of the UFC/WWE merger.
