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New position EDR (Endeavor Holdings) is an interesting add. A hybrid media and entertainment company that has a deep pairing with it's technology side for content distribution. Vertical integration wouldn't be far off on this one.

Endeavor was born out of the merger of William Morris Agency and Endeavor Talent Agency. William Morris was one of, if not the premier, talent agency in Hollywood until Creative Artists Agency (CCA) came on the scene in the 1990's.

Side Note: Some of the operational structure of famed investment firm Andreesen Horowitz is modeled on the vertical nature of CCA. CCA brought all the pieces for it's talent in house: legal, bookkeeping, public relations, etc. so it's talent didn't have to go out and find those pieces on their own. a16z, more or less, took note and did that same thing for it's portfolio companies.

Back to EDR... a company that owns a large swath of "longer tail" assets like the UFC, Professional Bull Riding, and Miss Universe. They're currently in the process of bringing nine minor league baseball teams on board. But that's probably not the area of the company ARK is most interested in.

Here's what most people will skip over when looking at EDR...

"We are one of the largest independent global distributors of sports video programming and data...We also provide league advisory services given the array of experience we have to offer. Through IMG ARENA, we work with more than 470 leading sportsbook brands worldwide to deliver live streaming video and data feeds for more than 45,000 sports events annually, as well as for on-demand virtual sports products including our own UFC Event Centre...

...We also leverage the technology derived from IMG ARENA to provide streaming video solutions to our clients and our owned assets via Endeavor Streaming...

...In September 2021, we signed an agreement to acquire the OpenBet business of Scientific Games Corporation ("OpenBet"). OpenBet consists of companies that provide products and services to sports betting operators for the purposes of sports wagering. Based on the agreement, we will pay consideration to Scientific Games Corporation cash of $1.0 billion, expected to be funded with cash on hand and additional borrowings under our"


For an entertainment company that gets more than half of it's revenue through sports and events...

EDR (Endeavor Group) revenue segment data table for 2016-2020.

EDR (Endeavor Group) revenue segment data table for 2016-2020.

...and had to go public during a pandemic, the market has been fairly receptive.

EDR (Endeavor Group) daily stock chart showing a price rise since it's IPO.

EDR (Endeavor Group) daily stock chart showing a price rise since it's IPO.

Not without good reason either, It looks like EDR will do more than $6bil over the next 12 months against a current valuation of $20bil. The only thing, in my opinion, holding the stock price back, is the pandemic. This, again in my opinion, is growth...

EDR (Endeavor Group) quarterly income chart showing strong growth since Q2 2020.

EDR (Endeavor Group) quarterly income chart showing strong growth since Q2 2020.

...at a very reasonable price. Consider that EDR trades at just 3.8 next-twelve-month sales...

EDR (Endeavor Group) forward price-to-sales estimate for 2022.

EDR (Endeavor Group) forward price-to-sales estimate for 2022.

Very few people know who or what EDR does making this a fairly interesting under-the-radar company. ARK picked up a few shares for a .32% weighting in ARKW