Endeavor, the sports and entertainment company led by Ari Emanuel and most commonly known for being owners of the UFC, has made a strategic investment in Twitter 2.0 after Elon Musk’s $44 billion takeover of the social media platform. This investment marks the first known outside investment in Twitter 2.0 since Musk’s takeover and subsequent changes.
Although Endeavor’s investment was not significant, it was strategically important to the company. As a company that represents some of the biggest names in media, entertainment, and sports, Endeavor routinely invests in tech and media platforms that support its growth.
As of January, dozens of media companies and sports leagues had signed sponsorship deals with Twitter, demonstrating the continued reliance of these industries on the platform.
Musk had approached investors in December to raise money to pay off Twitter’s debt, and Fidelity had cut its carrying value of Twitter by 56% during the first month of Musk’s ownership.
Struggling ad revenue
Musk warned engineers and product staff in December that a Twitter bankruptcy “isn’t out of the question.”
The company was struggling to hit its advertising targets, and in November, Musk had to pause its new verification program following user complaints.
Endeavor’s investment in Twitter comes after a long-standing personal relationship between Musk and Emanuel. In September, Bloomberg reported that Emanuel tried to pave the way for a settlement between Musk and Twitter when Musk was trying to back out of the deal.
As of March 2022, Musk was on Endeavor’s board. While the investment itself may not have been significant in its current financial value, it marks an important step for Twitter 2.0 and demonstrates the continued reliance of media, entertainment, and sports on the platform.