Endeavor launches its IPO on Friday, September 27th, in a cash grab for Endeavor’s CEOs and a raw deal for public investors. By going public, Endeavor compounds the existing conflicts in its representation business and brings talent one step closer to a future much like the old, exploitative studio system. On the day the company goes public, let’s show why writers, and investors, should be concerned by this #RiskyEndeavor.
Use the graphics and sample language below, or create original posts with the hashtag #RiskyEndeavor.
THEME 1: ENDEAVOR HAS LOST 1,400 TELEVISION AND FILM WRITER CLIENTS SINCE APRIL 2019
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- 1,400 writer clients walked away from @WME in April to bring an end to its conflicted practices. Until it can end these conflicts, @WME’s representation business is at risk of disruption—one of many reasons investors should beware of this #RiskyEndeavor.
- .@WME’s loss of 1,400 writer clients compounds its weak performance and high leverage. Now they want $$$ from public investors. Proceeds from Endeavor IPO will go towards pay down debt, not to creating value for shareholders. #RiskyEndeavor
Articles
- Buyer beware: Endeavor IPO offers up a company with huge debt, volatile earnings, says Bernstein – MarketWatch (July 15, 2019)
- Entertainment Giant Endeavor is going public: 5 things to know ahead of its IPO – MarketWatch (September 16, 2019)
- As Endeavor Talent Agency Prepares To Go Public, Investors Are Wary – NPR (July 4, 2019)
- Endeavor’s IPO prospectus for dummies: Why the Hollywood player wants you to think it’s a tech company – Fast Company (May 24, 2019)
- Why Endeavor’s IPO Numbers May Not Add Up (Guest Column) – Hollywood Reporter (June 24, 2019)
- “The Numbers are Fucked Up”: The Endeavor IPO Makes No Sense—Except As A Monument to Ari Emanuel’s Talent – Vanity Fair (May 31, 2019)
THEME 2: ENDEAVOR’S PACKAGING FEES AND CONTENT PRODUCTION VIOLATE FIDUCIARY DUTY AND THREATEN ITS REPRESENTATION BUSINESS
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- Hey @WME, here’s one thing we can all agree on! Over 1400 of your #WGA clients walked away over your conflicted practices of packaging fees and affiliated content production. This is one #RiskyEndeavor.
- Endeavor’s SEC filing is clear as day. @WME conflicts of interest make its IPO a #RiskyEndeavor
- Hey #WallStreet: If #Endeavor treats stockholders the same way they’ve treated their own clients, the #EndeavorIPO will be a bad investment. Learn about how they’ve been violating their fiduciary duty to clients. #Risky Endeavor https://www.youtube.com/watch?v=v5p6urW6c7I
Articles
- WME Threatened to ‘blow up’ the ‘Good Doctor’ deal over packaging fees, showrunner says – Los Angeles Times (July 20, 2019)
- Buyer beware: Endeavor IPO offers up a company with huge debt, volatile earnings, says Bernstein – MarketWatch (July 15, 2019)
THEME 3: ENDEAVOR IS FACING A FEDERAL LAWSUIT OVER ILLEGAL PACKAGING FEES, PRICE-FIXING BEHAVIOR
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- @WME’s practices have cost them clients and landed them in federal court. Now they’re asking Wall Street to fund their #RiskyEndeavor
- @WME is facing a lawsuit for allegedly violating antitrust, racketeering, and fiduciary laws. And the lawsuit claims they’re illegally strong-arming smaller agencies into following their lead. Investors beware of this legally-fraught #RiskyEndeavor
- Before anyone buys into the #EndeavorIPO, you might want to read up on the serious federal antitrust and RICO lawsuit that #Endeavor is facing. #RiskyEndeavor https://www.forbes.com/sites/dbloom/2019/08/19/writers-guild-takes-agency-battle-to-federal-court-with-racketeering-antitrust-suits/#55aedd0e1e7d
Articles
- Writers Guild Takes Agency Battle To Federal Court With Racketeering, Antitrust Suits – Forbes (August 19, 2019)
THEME 4: ENDEAVOR’S STOCK STRUCTURE DISADVANTAGES INVESTORS
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- Endeavor’s governance structure would give all the power to its top executives and private equity investors. Great news for @AriEmanuel & co. Bad news for shareholders and clients! #RiskyEndeavor
- .@WME’s business practices enrich executives at the expense of their own clients. Now they are playing the same tricks on investors, with a governance structure that frees top executives from shareholder oversight. Conflicts of interest—with clients and investors—make for a #RiskyEndeavor.
- The stock #Endeavor wants to sell you isn’t the same as the stock they keep for themselves. Dual-class stock and anti-takeover provisions make this IPO a #RiskyEndeavor https://www.sec.gov/news/speech/perpetual-dual-class-stock-case-against-corporate-royalty#_ftnref20
Articles
- Entertainment Giant Endeavor is going public: 5 things to know ahead of its IPO – MarketWatch (September 16, 2019)
- Letter from Kenneth A. Bertsch, CII Executive Director, to Egon Durban, Endeavor Chairman
THEME 5: THE NUMBERS DON’T ADD UP FOR ENDEAVOR’S IPO
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- #Endeavor claims to represent writers, but investors should know they’ve lost 1,400 TV and film writer clients since April 2019. I wonder why they didn’t mention that it their roadshow video for the #EndeavorIPO? #RiskyEndeavor