OpenBet and IMG Arena owner Endeavor Group Holdings has entered into a definitive agreement to be acquired by American private equity firm Silver Lake.
Silver Lake will acquire 100 per cent of the outstanding shares it does not already own, other than rolled interests, with Endeavor stockholders receiving $27.50 per share in cash.
This represents a 55 per cent premium to the unaffected share price of $17.72 per share at market close on 25 October, the last full trading day prior to Endeavor’s announcement of its review of strategic alternatives.
The transaction builds on multiple investments Silver Lake has made in Endeavor, starting with Silver Lake’s initial investment in William Morris Endeavor in 2012 and continuing through Endeavor’s subsequent acquisition of IMG in 2014 and initial public offering in 2021.
Silver Lake also supported Endeavor’s acquisition of UFC in 2016, and the merger of UFC and WWE that created New York-listed TKO Group Holdings last year.
At the $17.72 bid price, Endeavor is being acquired at an equity value of $13 billion. Silver Lake believes that when consolidating all of TKO’s value into Endeavor, the combined total enterprise value of $25 billion will make this the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector.
“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,” said Endeavor CEO Ariel Emanuel. “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.”
Silver Lake co-CEO and managing partner Egon Durban, who also serves as Endeavor chairman of the board, commented: “Our unwavering belief in Ari and Patrick, together with Mark and other talented leaders at Endeavor, has never been stronger. This is a very special partnership. 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.
“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. Consistent with our mission and underscored by this commitment being among the largest in Silver Lake’s history, we are all in on working with the Endeavor team and our trusted anchor investors to create value by accelerating growth at scale.”
A Special Committee of Endeavor’s independent directors have unanimously recommended approval of the transaction, which remains subject to the satisfaction of customary closing conditions and required regulatory approvals. No other stockholder approval is required.
“With Silver Lake’s continued partnership and support, Endeavor is ideally positioned to capitalize on compelling trends in media and entertainment, where global content spending has reached more than $200 billion per year,” said Endeavor executive chairman Patrick Whitesell. “In a business where the only constant is change, I know Endeavor will continue to lead the industry forward.”
Endeavor president and chief operating officer Mark Shapiro said: “Endeavor’s assets and capabilities across entertainment, sports, fashion, and music are unparalleled. This transaction further enhances our ability to deliver category-defining deals and iconic events and experiences for clients, partners, and fans around the world.
“Egon, Stephen, and the broader Silver Lake team have been and will continue to be phenomenal partners in Endeavor’s journey, and we look forward to the road ahead.”
The transaction is expected to close by the end of the first quarter of 2025. Upon completion of the transaction, Endeavor’s common stock will no longer be listed on any public market.
“The team at Silver Lake is proud of our longstanding partnership with Endeavor, marked by more than $3.5 billion of direct investment across six distinct transactions over 12 years,” added Silver Lake managing director and Endeavor director Stephen Evans. “We are excited about what we can achieve together in this next phase, spearheaded by Endeavor’s visionary expertise across talent representation and content and ownership of truly special, marquee assets in sports.”
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.
Shares in Endeavor Group Holdings Inc (NYSE:EDR) closed 2.06 per cent higher at $25.81 per share in New York Tuesday.