Endeavor Cuts Price Of IPO In Final Day Before Going Public

Peloton Raises $1.16 Billion in Top-of Range U.S. IPO

Peloton pedals its way to the high end of its IPO price

Endeavor late on September 26 pulled its USA initial public offering planned for the following day after facing continued headwinds regarding the offering and its company financials.

Disappointing initial public offerings and unsettled economic conditions could shut down many IPOs for the rest of the year - and maybe well into 2020, when the next batch of marquee IPO candidates like Airbnb could meet an even gloomier market and geopolitical environment.

Led by CEO Ari Emanuel and executive chairman Patrick Whitesell, Endeavor is pitching itself to Wall Street as far more than a talent management concern. The offering raised $1.16 billion and initially valued the digital fitness company at $8.1 billion.

"It's an interesting time in the markets", Foley said.

The IPO makes the company fully funded and will help it focus on adding subscribers in the coming years, he said.

Endeavour had been trying to sell its shares right until it chose to pull the IPO Thursday night.

This valued Peloton at around $8.1 billion, nearly double its most recent valuation in the private market of $4.15 billion, according to data provider PitchBook.

Peloton - like some others that have sagged since their debut - has a dual-class share structure that gives top owners including its founder 20 votes for each share they own.

The surprise postponement of the WeWork IPO has underscored how confidence is eroding in the market both for companies looking to raise capital and investors.

"We totally understand the sentiment today", Peloton Chief Financial Officer Jill Woodworth said in an interview.

Peloton's membership allowed its to reach Dollars 915 Million in sales for the fiscal year ended on June 30, representing a 110% increase year-over-year. That compared with a loss of US$48 million on US$435 million in sales during the same period a year earlier.

Subscriptions are a key driver of Peloton's business.

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