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Private equity firm Silver Lake has successfully finalized its acquisition of Endeavor, a leading player in the sports and entertainment industry, effectively taking the company private in a transaction valuing it at $25 billion, as announced on March 24.
Under the terms of the deal, shareholders of Endeavor will receive $27.50 in cash per share, translating to a remarkable 55% premium over the company’s closing stock price of $17.72 on October 25, 2023—the day prior to the announcement of the acquisition plans.
Following the acquisition, Endeavor, which boasts a diverse portfolio that includes the talent agency WME, marketing firm 160over90, and IMG Licensing for brand management, will be rebranded as WME Group. This transaction marks a significant milestone, as it represents the largest media and entertainment firm to go private under a private equity sponsor, according to Silver Lake’s official statement.
Egon Durban, co-CEO of Silver Lake, remarked that the firm has maintained its investment in Endeavor since its initial entry in 2012 without selling any shares, noting that the company’s revenue has surged twentyfold during this period. “Our continued investment over six rounds demonstrates our commitment, and now this latest acquisition establishes Endeavor as our most significant holding in our global portfolio,” Durban stated.
In the aftermath of the deal, Endeavor’s founder and previous CEO, Ari Emmanuel, will assume the position of executive chairman at WME Group. On the day of the announcement, Emmanuel reportedly sold a portion of his shares for $173.8 million, as detailed in a regulatory filing highlighted by Variety. Additionally, Patrick Whitesell, the former executive chairman of Endeavor/WME, received a $100 million payout, as reported by Variety.
Post-acquisition, Endeavor will retain a majority stake in TKO Group Holdings, a publicly traded sports and entertainment entity that encompasses major assets such as WWE and the Ultimate Fighting Championship (UFC). The $25 billion valuation attributed to Endeavor includes the worth of TKO’s assets.
Beyond WME and its associated companies, Endeavor’s extensive portfolio also features offerings such as Pantheon Media Group, the live event hospitality firm On Location, and the sports betting data provider OpenBet.
With co-CEOs Egon Durban and Greg Mondre at the helm, Silver Lake oversees $104 billion in assets under management, with investments in numerous high-profile companies including Oak View Group, Fanatics, TEG, Waymo, Stripe, Plaid, SoFi, and Madison Square Garden Sports.
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