BREAKING NEWS: Silver Lake to Take Endeavor Private in $13B Deal
Silver Lake Management, a tech-focused private equity firm, has agreed to acquire Endeavor Group, a Beverly Hills-based sports and entertainment company, for $13 billion.
Silver Lake will purchase all outstanding shares in Endeavor for $27.50 a share in cash, representing a 55% premium to Endeavor’s price on October 25, before Endeavor announced it was reviewing strategic alternatives.
Endeavor Group is also the controlling investor in WWE and Ultimate Fighting Championship. TKO Group is not a party to the transaction and will remain a publicly traded company, Silver Lake said.
Silver Lake claims that by 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”, as well as the largest ever in the media and entertainment sector.
“Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban [co-CEO, managing partner of Silver Lake] have been central to our evolution into the global sports and entertainment leader we are today,” said Ariel Emanuel, CEO of Endeavor. “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.”
The transaction builds on Silver Lake’s previous investments in Endeavor, beginning with its original 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, resulting in the sports and entertainment business TKO Group Holdings, Inc. in 2023.
The deal will be funded by a combination of new and reinvested equity from Silver Lake and additional funds provided by Mubadala Investment Company, DFO Management, LLC, Lexington Partners, and Goldman Sachs Asset Management.
The deal is expected to close by the end of the first quarter of 2025.