Endeavor executive chairman Patrick Whitesell is launching a new media company supported by Silver Lake as part of the private equity firm’s agreement to buy the sports and entertainment giant for an equity value of $13 billion and privatize it.
According to a filing with the U.S. Securities and Exchange Commission, Silver Lake will invest $250 million of seed equity into the company.
The money will be used for “(a) investing in and providing services to companies in the entertainment, media and sports industries; (b) developing, producing, financing and exploiting film, television and digital audio visual content; (c) talent management; and (d) consulting with other entertainment companies.”
Whitesell will become a member of Endeavor’s board of directors and, if requested by the company or Silver Lake affiliate, will be made chairman of the governing body of William Morris Endeavor Entertainment.
If appointed WME chairman upon closing of the transaction, Whitsell will get quarterly royalty payments from WME equal to 2.5% of the quarterly net cash profits of the agency representation business of WME. If Whitesell refuses or is not appointed as chairman of WME, he will get a lump sum payment of $60 million.
Whitesell, who has previously served as co-CEO of both Endeavor and WME, was appointed executive chairman of Endeavor Group Holdings in October 2017. He joined Endeavor in 2001 after working as an agent at United Talent Agency and head of CAA’s talent department. In 2009, Whitesell and CEO Ari Emanuel merged the company with William Morris to create WME.
More details to follow…
