Private equity powerhouse Silver Lake has successfully finalized its acquisition of 100% of the shares of the renowned sports and entertainment conglomerate Endeavor, effectively taking the company private in a remarkable deal valued at a staggering $25 billion, as announced on Monday, March 24. This strategic move marks a significant milestone in the private equity landscape, reshaping the future of one of the industry’s largest players.
Under the terms of this lucrative deal, shareholders of Endeavor will receive $27.50 in cash for each share they hold, which translates to an impressive 55% premium above the company’s closing price of $17.72 on October 25, 2023 — the day prior to Endeavor’s announcement regarding Silver Lake’s intent to take the company private. This premium underscores the confidence Silver Lake has in Endeavor’s future potential.
With this acquisition, Endeavor, which encompasses a diverse portfolio including the talent agency WME, marketing agency 160over90, and brand licensing agency IMG Licensing, will be rebranded as WME Group. This historic move signifies Endeavor as the largest entity in the media and entertainment sector to be privatized by a private equity firm, as highlighted in a press release from Silver Lake, marking a pivotal moment in industry evolution.
Silver Lake co-CEO Egon Durban stated that his firm has maintained a steadfast commitment to Endeavor, never having sold a single share since their initial investment in the company back in 2012. Over this decade-long partnership, Endeavor has impressively achieved a twentyfold increase in revenue, demonstrating the firm’s robust growth trajectory and resilience in a competitive market.
“Silver Lake has made six separate investments to bolster Endeavor’s growth and, with this latest acquisition, it now represents our largest single investment in our extensive global portfolio,” Durban elaborated, emphasizing the strategic importance of this deal for both parties involved and how it aligns with Silver Lake’s long-term investment strategy.
Following the acquisition, Endeavor’s founder and former CEO, Ari Emmanuel, will transition to the role of executive chairman of WME Group. On the same day, Emmanuel divested a portion of his ownership stake in the company, netting an impressive $173.8 million, as reported by a regulatory filing highlighted by Variety. Moreover, Patrick Whitesell, who previously served as the executive chairman of Endeavor/WME, received a substantial payout of $100 million, a clear indication of the transaction’s financial magnitude.
In the aftermath of this significant deal, Endeavor will retain its majority stake in TKO Group Holdings, a separately traded entity within the sports and entertainment sector, which boasts high-profile assets such as the wrestling promoter WWE and the Ultimate Fighting Championship (UFC). The overall valuation of $25 billion encompasses the assets of TKO, highlighting the strategic depth of Endeavor’s portfolio.
Apart from WME, 160over90, and IMG, Endeavor’s extensive portfolio further includes Pantheon Media Group, the live event hospitality firm On Location, and the sports betting data company OpenBet. This diverse range of assets positions Endeavor as a leading force in the entertainment and sports industries, showcasing its comprehensive approach to market engagement.
Under the leadership of co-CEOs Egon Durban and Greg Mondre, Silver Lake manages an impressive $104 billion in combined assets, with a portfolio that includes significant stakes in prominent companies such as Oak View Group, Fanatics, TEG, Waymo, Stripe, Plaid, SoFi, and Madison Square Garden Sports. This vast portfolio underscores Silver Lake’s influential role in shaping the future of technology and entertainment.
