Endeavor Pulls IPO Day Before Going Public

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

Endeavor Pulls IPO Day Before Going Public

Another initial public offering (IPO) has been put on hold amid a lack of investor enthusiasm.

The Writers Guild of America said in a statement that, "reports that the Endeavor IPO has been withdrawn show that investors didn't buy the company's conflicted practices". The offering raises $1.16 billion and values the trendy digital fitness company at $8.2 billion. This isn't the first time the company has either pulled or delayed their IPO, as a similar situation happened this past Summer after Endeavor purchased OnLocation Experiences.

"So while the company is portraying this offering as an opportunity for investors to get in on a modern large-scale entertainment platform, a skeptic might view the IPO as tapping the equity markets to bail the company out of a near-term debt payment it may or may not have expected", analyst Billy Duberstein wrote for Motley Fool.

Peloton says it has sold 577,000 machines, almost all of them in the United States, and has 1.4 million members who pay a monthly fee. The Writers Guild of America and other critics have criticized the push on the content side, arguing the company is negotiating against itself to the disadvantage of clients. Users also have to pay for monthly subscriptions, which come in around $20 or $40, depending on the plan. Peloton Chief Monetary Officer Jill Woodworth mentioned that the corporate observed headlines expressing "concern about high-growth tech firms and profitability" as Peloton launched into its IPO roadshow, although she discovered that buyers she spoke with "perceive we're each growth-focused and really disciplined".

Growing membership has helped Peloton's sales grow to $915 million for the fiscal year ended June 30, up 110% from $435 million in fiscal 2018. Foley recently said that "Peloton sells happiness".

"The core business is good, but at US$27 we're setting it up for failure", he said.

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