Endeavor Group will be selling a chunk of its stake in video game publisher Epic Games as part of a new round of fundraising for the company behind Fortnite, Deadline has confirmed.
Endeavor has been dogged by debt and struggling for cash as the coronavirus hits its diverse businesses hard, especially live events.
The sale could raise as much as $100 million, according to business website The Information.
Epic is trying to raise money in the current fundraising round at a valuation well above the $15 billion set at its last round, according to Bloomberg. That’s not surprising. Fortnite surpassed more than 350 million registered players since launch in 2017, Epic revealed earlier Wednesday, making it one of the biggest games ever. Players spent 3.2 bilion hours on it in April.
Endeavor will retain some of its stake.
Endeavor Group, whose portfolio includes talent agency WME and UFC, is open to selling non-core assets, particularly ones that will net a strong return.
Ratings agency S&P Global downgraded Endeavor last month due to high leverage, weak cash flow and concern that the company may possibly pursue a restructuring of its debt at some point. The big ratings agencies have been actively scrutinizing the media and entertainment business, which as been pummeled on multiple fronts by COVID-19, handing out high-profile downgrades to companies from Walt Disney to ViacomCBS parent National Amusements and CAA.
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