Silver Lake has agreed to buy and take Endeavor Group Holdings private. The decision, which is being done in collaboration with Endeavor’s management team and other major investors, will result in the acquisition of the sports and entertainment company for $13 billion.
According to the agreement, the private equity firm, holding about 71% of Endeavor’s voting power, will purchase all the outstanding shares it doesn't already own, except for rolled interests.
Endeavor shareholders will get $27.50 per share in cash, which is a 55% premium compared to the unaffected share price of $17.72 per share at the market close on Oct. 25, the last full trading day before Endeavor announced a review of strategic options. announcing a review of strategic alternatives.
“Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban have been central to our evolution into the global sports and entertainment leader we are today,” CEO Ari Emanuel said in a statement. “We believe this transaction will maximize value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.”
“Together, we have built and grown Endeavor from $350 million in annual revenue when we first invested in 2012 to nearly $6 billion in consolidated revenue today,” Silver Lake managing partner and co-CEO and Endeavor board chairman Egon Durban added. “Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events with bold vision.”
The deal, which received unanimous approval from Endeavor’s special committee of independent directors, will be funded through a mix of new and reinvested equity from Silver Lake and additional capital anchored by Mubadala Investment Company, DFO Management, LLC, Lexington Partners, and funds managed by Goldman Sachs Asset Management.
It will also involve equity rolled over by members of the Endeavor management team, including Emanuel, executive chairman Patrick Whitesell, and president and chief operating officer Marc Shapiro, and new debt financing fully committed by Goldman Sachs, USA, JP Morgan, N.A., Morgan Stanley Senior Funding, Inc., Bank of America, N.A., Barclays PLC, Deutsche Bank AG New York, and Royal Bank of Canada.
The transaction, which is subject to the satisfaction of customary closing conditions and necessary regulatory approvals, is expected to finalize by the end of the first quarter of 2025. Once completed, Endeavor’s common stock will no longer be listed on any public market.
Following the news, Endeavor's stock rose by 2.5%, and the company currently has a market capitalization of $12.08 billion. Its businesses include talent agency William Morris Endeavor, UFC and WWE parent TKO Group Holdings, sports and modeling agency IMG, marketing agency 160over90, sports betting firm OpenBet, and sports data and technology firm IMG Arena.
By combining TKO’s value into Endeavor, the private equity firm estimates that the company has a total enterprise value of $25 billion, making the deal the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector. On the unaffected date, the equity value was $8.2 billion, and the premium to be paid by SilverLake represents $4.6 billion more equity value to all Endeavor stockholders.
TKO is not involved in this deal and will stay as a company that trades publicly, and will still gain from its connection to Endeavor’s knowledge, connections, and major abilities.
