Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk has been nominated to join the board of Endeavor Group Holdings Inc., owner of the Ultimate Fighting Championship and the Miss Universe international beauty pageant.
What Happened: Endeavor Group, which has revived its plans to go public after a failed attempt in 2019, said in a regulatory filing on Wednesday that Musk is currently a director nominee and would become a board member at or prior to the pricing of its offering.
Endeavor plans to add Musk, who is also the CEO of SpaceX as well as the founder of The Boring Company and Neuralink Corp, as one of its 11 directors.
Endeavor noted that there are no restrictions on Musk’s ability to serve as an officer or a director on a company’s board after his settlement with the U.S. Securities and Exchange Commission in 2018. Without admitting or denying the SEC’s allegations regarding his Twitter post about potentially taking Tesla private, Musk agreed to pay a fine and step down as Tesla’s chairman.
Endeavor began as a talent agency started by Hollywood power broker Ari Emanuel. The media and entertainment agency now owns or operates more than 800 events annually around the world. The live events include UFC, the Miami Open, New York Fashion Week, Frieze art fairs, and the Miss Universe international beauty pageant — which it bought from Donald Trump in 2015.
The company also operates IMG Academy, a sports training institution, and owns the WME talent agency, whose clients include actors, athletes and other celebrities.
See Also: Businesses Raised $159B In 2020 US IPO Boom: Refinitiv
Why It Matters: Endeavor filed for an IPO in 2019, but abandoned the plans following weak investor demand. The company is now looking to once again tap the IPO market.
For the year ended December 31, 2020, Endeavor generated revenue of $3.48 billion and reported net loss of $625.3 million, compared to revenue of $4.57 billion and net loss of $530.7 million in the prior year.
Endeavor has filed to list its Class A common stock on the New York Stock Exchange under the symbol “EDR.”
Price Action: Tesla shares closed almost 5.1% higher on Wednesday at $667.93, but declined almost 0.7% in the after-hours session.
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