Matthew Maddox, who took over as CEO earlier this year after previously leading Wynn Resorts Ltd., told Bloomberg TV on Monday that the company is set to go public if it chooses. "The company is ready," he said.
"Our systems are in place. Our people are in place. Our story is crisp. We are ready to go." He said an initial public offering could come as early as next year, with timing that could fall in the first half.
Maddox said Authentic posts $1.8 billion in EBITDA on $2.2 billion in revenue, which works out to an unusually high 81% margin. About 35% of revenue comes from international markets, and entertainment properties account for roughly 20% of the total. Its standard arrangement is to earn roughly 6% to 7% in royalties on partner-made products, which means inventory costs and manufacturing-related capital outlays stay off its books.
The company announced a partnership on Monday with podcaster Steven Bartlett. According to Maddox, figures such as Bartlett will open a new avenue for growth over the next decade, with Authentic adapting its approach to scaling licensed products and live-event offerings for the influencer ecosystem. He added that the business is growing 7% to 8% organically and 24% including acquisitions.
In the last 18 months, Authentic has deployed $2 billion on transactions, among them deals tied to Guess? Inc. and Care Bears. The company counts $10 billion worth of intellectual property and Maddox would like to double that figure over the next 24 months.
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If Authentic lists next year, it would bring a pure-play licensing operator to the public market that leans on royalties instead of warehouses and factories. The watch items are clear: can creator partnerships scale, can that 80-plus percent margin hold as the portfolio grows, and can the company double its IP base on the timetable Maddox outlined without crimping those cash-light dynamics?
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