Famed superagent Ari Emanuel’s Endeavor is having an unpleasant time looking for a purchaser for his struggling magnificence pageant enterprise, and refuses to cut the value, The Submit has discovered.
Emanuel, the inspiration for fictional Hollywood agent Ari Gold in HBO’s hit present “Entourage,” has been purchasing round his Miss Universe enterprise for the final six months for $20 million, with no luck, a supply with information stated.
The hard-charging CEO of Endeavor, which owns the Final Combating Championship and the William Morris Expertise Company, snapped up the wonder pageant group from Donald Trump in 2015 forward of his presidential bid.
Though the sale worth was not disclosed, monetary statements associated to Trump’s political marketing campaign stated the group was value between $5 million and $25 million and had $3.4 million in income.
An individual acquainted with Miss Universe’s monetary scenario instructed The Submit the group — which incorporates Miss USA and Miss Teen USA occasions — books $2 million in losses yearly, whereas producing income between $7 million and $9 million.
Emanuel has been making an attempt to woo overseas traders primarily based in Asia and South America, the sources stated. An individual acquainted with Endeavor’s considering stated so as to offload the asset, the value of Miss Universe could also be lowered just a little, however not a lot.
The mogul doesn’t like “admitting” he “misplaced cash” on something, so the value doubtless received’t be dropped “sufficient,” the individual added.
Endeavor declined to remark.
An individual acquainted with the scenario stated a purchaser is however declined to offer particulars.
The insider stated Miss Universe has been worthwhile on common since Endeavor purchased it — if the pandemic yr is stripped out. The group was pressured to cancel occasions in 2020.
Endeavor, which went public in 2021, has been trying to prune some lackluster companies because it hunts for extra acquisitions and grows profitable, money-making divisions like MMA league UFC, insiders stated.
The Miss Universe pageant, which was based in 1952, was first televised in 1955 by CBS. It emerged as a competitor to the Miss America pageant, which was based in 1921. Though the 2 pageants are sometimes confused, the Miss America pageant is owned by the nonprofit Miss America Group, which additionally runs a scholarship program that was launched in 1945.
Miss Universe’s rule guide allowed solely single ladies between 18 and 28 who've by no means been married or had youngsters to use. In recent times, each occasions have tried to evolve previous their conventional roots as rankings plunged.
Final yr’s Miss Universe pageant, received by India’s Harnaaz Sandhu, drew 2.7 million complete viewers on Fox — placing the community in final place among the many massive 4 broadcasters. The score marked a 30% dive from the three.8 million viewers the pageant drew in 2019. Simply two years earlier, in 2017, the pageant reeled in 5.2 million complete viewers.
This yr’s pageant is slated for December and can once more be televised by Fox.
The drop in viewership additionally comes as critics query whether or not magnificence pageants are dated and hinder the reason for gender equality. The Miss America pageant minimize its swimsuit competitors in 2018 amid waning rankings that almost all lately dropped to three.6 million in 2020.
Final yr’s Miss Universe pageant welcomed its first transgender contestant, and subsequent yr’s will enable married ladies and moms.
For Endeavor, promoting off Miss Universe will assist it shore up money for different enterprise alternatives, a supply stated, noting that Emanuel has many funding concepts in thoughts.
Promoting off property has been a part of Endeavor’s playbook. Previous to going public, the media conglomerate, which has an funding arm, bought stakes in Epic Video games, maker of Fortnite, for about $80 million.
The corporate, which manages occasions for Vogue Week occasions all over the world, varied PGA golf tournaments and professional tennis tournaments corresponding to Wimbledon and the Australian Open, additionally bought smaller investments in underperforming companies, forward of its second try and go public in 2021.
Endeavor, which reps the likes of Matt Damon, Oprah Winfrey and Christian Bale by its WME expertise company, tried and didn't go public in 2019 as traders eschewed Endeavor’s hodgepodge of property and heavy debt load.
Two years later, the agency sweetened the pot, shopping for its remaining stake within the profitable UFC, which helped Endeavor go public at $24 a share final April. Within the final yr, Endeavor’s inventory has swung from a excessive of $34 to a newer low of round $22.
The inventory closed Thursday close to that low, at $22.55.
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