Silver Lake to Take Endeavor Private

Silver Lake has entered into an agreement to acquire and take Endeavor Group Holdings private. The move, which is being coordinated in partnership with Endeavor’s management team and additional anchor investors, will see the sports and entertainment giant acquired at an equity value of $13 billion.

Under the terms of the agreement, the private equity firm, which holds approximately 71% of Endeavor’s voting power, will acquire 100% of the outstanding shares it does not already own, other than rolled interests.

Endeavor stockholders will receive $27.50 per share in cash, representing a 55% premium to the unaffected share price of $17.72 per share at market close on Oct. 25, the last full day of trading prior to Endeavor 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 was unanimously approved by Endeavor’s special committee of independent directors, will be financed through a combination 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 include 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 required regulatory approvals, is expected to close by the end of the first quarter of 2025. Upon completion, Endeavor’s common stock will no longer be listed on any public market.

Endeavor, which saw its stock pop 2.5% on the news, has a market capitalization of $12.08 billion. Its portfolio of 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.

When consolidating TKO’s value into Endeavor, the private equity firm estimates 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 party to this transaction and will remain a publicly traded company that will continue to benefit from its connectivity to Endeavor’s expertise, relationships, and significant capabilities.

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