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Three years after it went public, the sports and entertainment behemoth Endeavor is to go private and will be acquired by majority shareholder Silver Lake in a deal that values it at $13bn.

Private equity firm Silver Lake will acquire all the outstanding shares it does not already own, other than rolled interests.

Stockholders of Endeavor, which owns the talent agencies WME and IMG, will receive $27.50 per share in cash. That marks a 55% gain on the closing price on October 25 last year, when Endeavor announced it would implement a formal review to evaluate strategic alternatives

Silver Lake, which first invested in William Morris Endeavor in 2021, said when the value of sports powerhouse TKO Group Holdings is factored in, the combined enterprise value rises to $25bn, making the transaction the biggest privatisation transaction in media and entertainment.

Endeavor is a controlling shareholder of TKO, which was not a party to the transaction and will remain a publicly traded company.

CEO Ari Emanuel said he was “excited to continue to unlock and invest in the growth opportunities ahead as a private company”.

Egon Durban, co-CEO and managing partner of Silver Lake and Endeavor board chairman, added the partners had grown Endeavor from $350m in annual revenue in 2021 to nearly $6bn in consolidated revenue.

The transaction builds on Silver Lake’s investments in Endeavor, starting with the initial investment in William Morris Endeavor in 2012, Endeavor’s acquisition of IMG in 2014, and the initial public offering in 2021.

Endeavor said the transaction will be financed through a combination of new and reinvested equity from Silver Lake and additional capital anchored by Mubadala Investment Company, DFO Management, Lexington Partners, and funds managed by Goldman Sachs Asset Management, as well as equity rolled over by members of the Endeavor management team, and new debt financing.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the first quarter of 2025.