Endeavor LLC shelved plans for an initial public offering amid tepid reception from investors and the instability in the IPO market in recent weeks, Variety reported.
The Hollywood talent agency planned to offer 15 million shares of class A common stock with a price range between $26 to $27 per share, which is below the $30 to $32 range the company set last week.
In a statement, Endeavor described the decision as a postponement. "Endeavor will continue to evaluate the timing for the proposed offering as market conditions develop," the company said.
The company's IPO will be delayed until 2020 at the earliest, Bloomberg News reported, citing a person familiar with the matter. Endeavor is backed by private equity firm Silver Lake Partners.
Endeavor's financial statements have been complicated by its recent acquisitions that left the company shouldering around $4.6 billion in debt. The underlying issue of a lack of free cash flow, significant leverage and lack of sustained profitability in key divisions left prospective investors underwhelmed, the report said.
The eleventh-hour move comes shortly after the bumpy market debut of digital fitness company Peloton Interactive Inc., which reportedly led Endeavor to postpone its IPO.
