On Tuesday, private equity firm Silver Lake made an announcement regarding its acquisition of entertainment company Endeavor Group Holdings for $27.50 a share. This move caused Endeavor’s stock to rise by more than 2% on Tuesday afternoon, following a brief halt prior to the announcement. With Silver Lake acquiring 100% of the shares it does not already own, Endeavor is set to be acquired at an equity value of $13 billion. The transaction is slated to close by the end of the first quarter of 2025.
Endeavor, primarily known for talent representation through agency WME, brand licensing, and live events, has undergone significant changes over the years. In 2022, the company acquired OpenBet, a sports betting platform, diversifying its portfolio. The following year, in 2023, Endeavor sold IMG Academy, a sports education institution, in a $1.25 billion deal. Additionally, Endeavor is the majority owner of TKO Group Holdings, which holds the UFC and WWE. As part of the acquisition deal, TKO will continue to operate as a publicly traded company.
Prior to the acquisition, Endeavor had expressed its intention to explore strategic alternatives, including a possible sale. The involvement of Silver Lake dates back to 2012 when the firm initially invested in Endeavor. Notably, Silver Lake played a key role in supporting Endeavor’s acquisition of the UFC in 2016. With the acquisition of Endeavor Group Holdings, Silver Lake aims to maximize value for all of Endeavor’s public stockholders while unlocking new growth opportunities as a private entity.
Endeavor CEO Ariel Emanuel expressed enthusiasm about the transaction, stating, “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.” As Endeavor transitions into private ownership under Silver Lake, the company is poised to capitalize on new avenues for expansion and development in the ever-evolving entertainment industry.