Endeavor, the sports and entertainment giant that owns agencies WME and IMG, announced Tuesday that it will be acquired by private equity firm Silver Lake in a deal that values the company at $13 billion. The move comes three years into Endeavor's tenure as a publicly traded company and just six months since WME's arch-rival CAA took new ownership.
Silver Lake is Endeavor's largest shareholder, having made its initial investment in WME in 2012 and buying IMG two years later, and plans to acquire 100% of the remaining shares by offering shareholders $27.50 per share in cash. which represents a 55% premium to the unaffected stock price of $17.72 per share. Endeavor noted that this was the share price on October 25, 2023, a day before the company revealed a review of strategic alternatives that included privatisation.
The company, which went public in 2021 after delays amid the pandemic, currently trades as EDR on the New York Stock Exchange, closing at $25.81 on Tuesday (April 2).
In addition to WME and IMG, Endeavor's portfolio includes live event hosting company On Location, marketing agency 160over90 and sports betting data company OpenBet. Endeavor is also the majority owner of TKO Group Holdings, which was formed last year to merge the UFC martial arts league with World Wrestling Entertainment. TKO is not part of the Silver Lake acquisition, however, and will continue to trade on the NYSE as “TKO” and “will continue to benefit from its connectivity with Endeavor's expertise, relationships and significant capabilities,” it said. company.
Led by co-CEOs Egon Durban and Greg MontreSilver Lake's combined assets of $102 billion include a portfolio of companies such as Oak View Group, Fanatics, TEG, Waymo, Stripe, Plaid, SoFi and Madison Square Garden Sports, among others.
Endeavor said the transaction is fully funded through equity from Silver Lake and additional capital from partner investors including Mubadala Investment Company, DFO Management, Lexington Partners and funds managed by Goldman Sachs Asset Management. Members of Endeavor's leadership team, including the CEO Ari Emmanuelexecutive chairman Patrick Whitesell and president and COO Mark Shapirowill also convert their equity, and new debt financing was secured by Goldman Sachs, JP Morgan, Bank of America and other institutions.
“Since 2012, Endeavor's strategic partnership with Silver Lake and Egon Durban has been central to our evolution into the global sports and entertainment leader we are today,” said Emanuel. “We believe this transaction will maximize value for all of Endeavor's public shareholders, and we are excited to continue to unlock and invest in future growth opportunities as a private company.”
Steven Evans, managing director of Silver Lake and director of Endeavor, said: “The Silver Lake team is proud of our long-standing partnership with Endeavor, characterized by direct investments of more than $3.5 billion in six different transactions over 12 years . We're excited about what we can achieve together in this next phase, spearheaded by Endeavor's visionary expertise in representing talent and content and owning truly distinctive, modern assets in sports.”
