Shares of Endeavor Group Holdings (EDR.US), the entertainment holding company best known for owning the world's largest mixed martial arts federation, UFC is losing nearly 1% despit bullish comments from Bank of America. BofA analysts are positive about the group's acquisition of wrestling federation World Wrestling Entertainment. They noted that the merger with WWE will unlock 5 new areas of growth potential for the group:
- WWE and Endeavor announced the merger yesterday, valuing the deal at more than $21 billion. WWE is valued at $9.3 billion, a more than 30% premium to the company's market capitalization as of Friday, last week. UFC owner Endeavor is valued at more than $12 billion. Dana White will still serve as head of the UFC federation;
- In a note to clients, BofA analysts indicated that it is difficult to determine the exact impact of the acquisition but there is room for growth, including the possibility of a new consumer offering combining UFC and WWE content and the renewal of media rights on FOX and NBC TV, which expire in 2024;
- BofA also pointed to increased sponsorship and licensing opportunities; promotion of both federations (including the use of UFC fighters in WWE events), enhanced WWE events, increased ticketing opportunities and VIP booths, and high growth potential from WWE sports betting - the company recently sought regulatory approval to legalize betting on fight outcomes.
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Open account Try demo Download mobile app Download mobile appEndeavour Group Holdings (EDR.US) stock, H4 interval. The main resistance is the August 2022 peaks near $26 per share. The price is trying to hold the SMA200 (red line) level to maintain the upward trendline. Source: xStation5
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