Elon Musk has been selected to join the board of directors of an entertainment powerhouse. This has been confirmed in Endeavor Group’s latest IPO filing. After failing to capture investor interest in 2019, can it succeed this time?
Endeavor Group, the parent company of UFC and WME, has confirmed the nomination of Elon Musk as one of its board members. Since its launch by American businessman and Hollywood mogul, Ari Emanuel, the company has become an entertainment powerhouse. It has over the years strategically acquired or merged with other companies and is now responsible for managing the Miami Open, New York Fashion Week, and Miss Universe international beauty pageant.
Is Hollywood Ready for Musk?
Musk is already the CEO and product architect of Tesla Inc (NASDAQ: TSLA), CEO and chief designer of SpaceX. He is also the founder of Boring and Neuralink. Most recently, he has been a favourite among the crypto community after buying Bitcoin worth $1.5 billion through Tesla. In almost every industry he has been involved in, he has been greatly influential and changed its course. Is he about to repeat this with Hollywood?
“Mr Musk was selected to serve on our board of directors because of his professional background and experience running a public company, his previously held senior executive-level positions, his service on other public company boards and his experience starting, growing and integrating businesses,” the company stated.
In the IPO filing, Endeavor indicated that they were seeking Elon Musk to join as one of its 11 board members. This move has been viewed as strategic. Not only because of his business expertise but because he will attract investors. Back in 2019, Endeavor pulled out of an IPO launch following little demand for its shares. Arguably, this year is a worse time for the company to list. It comes after a year in which Covid 19 hit a major share of its business.
Endeavor Close Relations with Musk
Elon Musk has to be voted to join the board but there is little doubt he will fall short. He is further tipped to accept the invitation since he has a close relationship with the CEO Ari Emmanuel and his family. Emmanuel was one of the earliest customers of Tesla, reserving the first production model, the original Roadster. His brother Rahm Emanuel, who served as the 55th mayor of Chicago from 2011 to 2019, gave a huge contract to Musk’s Boring Company.
It is key to note that Emmanuel also has a great business and personal relationship with other top influential people. One of whom is former president Donald Trump. In 2015, Trump sold Endeavor the Miss Universe pageant.
According to CNBC, the company posted losses to the tune of $625.3 after generating $3.48 billion in sales. With poor financial results and an uncertain immediate future, backing from these individuals could guarantee the demand.