Sports and entertainment giant Endeavor recorded revenue of close to $1.6 billion in the fourth quarter (Q4) of 2024 (up year-on-year from $1.46 billion) in what is potentially its last set of quarterly financials as a publicly-listed company.
Endeavor is in the process of being taken private by private equity investment group Silver Lake, in what is believed to be the “largest” private equity sponsor privatization of any business in the media and entertainment sector ever, with the share acquisition transaction boasting an equity value of $13 billion and a total enterprise value of $25 billion.
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Elsewhere in its Q4 financials, for the three months up to December 31 last year, Endeavor recorded a net loss of $237 million (as opposed to only $29.3 million in 2023), and EBITDA (earnings before interest, taxation, depreciation, and amortization) of $277 million.
Silver Lake is purchasing 100% of the shares in Endeavour (that it doesn’t already own) at $27.50 per share, a 55% premium on the close value of shares from October 25, 2023.
Connected to its privatization, Endeavor has today unveiled the finalization of transferring ownership of its IMG (sports agency), On Location (hospitality and events), and Professional Bull Riders (PBR) assets to its TKO sports vehicle. In addition, it is selling its OpenBet and IMG Arena betting and data properties to a group backed by chief executive Ari Emanuel for around $450 million.
Endeavor had previously said it expected the Silver Lake and TKO (a $3.25 billion all-equity purchase) deals to close by the end of Q1 this year – the last day of March, but this has now been announced following hot on the heels of the results.
While the leadership of PBR and On Location remains unchanged, IMG president of media Adam Kelly now steps in as president of IMG overall.
Endeavor acquired sports betting platform OpenBet, meanwhile, in 2022 for about $800 million and merged it with IMG Arena into one division in February this year.
Endeavor has been trading on the New York Stock Exchange for the last four years, with Silver Lake having first invested in the giant in 2012.
For the full-year, meanwhile, total company revenue came to $7.1 billion, with a net loss of $1.2 billion and adjusted EBITDA of $1.3 billion.
The owned sports properties segment secured Q4 revenue of $670.4 million, up 4% year-on-year, and $2.9 billion for the whole of 2024.
Looking forward to 2025, the company is expecting further revenue gains still, targeting between $2.93 billion and $3 billion across the year.
This revenue boost has been attributed to sponsorship and live event income rising at the Ultimate Fighting Championship mixed martial arts promotion, and also increases in “team-related revenue, brand partnerships, and ticket sales” at PBR.
Annually, meanwhile, its revenues are up 64% from 2023 due to the World Wrestling Entertainment (WWE) promotion only being counted as an Endeavor asset from September 2023 – meaning only a small proportion of its income counted in 2023, as opposed to all revenues last year.
That segment’s quarterly EBITDA came to $237.2 million, up 6%, with annual EBITDA up 54%.
For events, experiences, and rights, meanwhile, this segment brought in $411.9 million in Q4, down 1% year-on-year. However, its annual revenue was $2.5 billion, up 16% year-on-year.
Annually, the income rise has been put down to the Paris 2024 Olympic Games taking place across July and August, as well as revenue from other events such as the American football Super Bowl LVII in Nevada, as well as the 2024 editions of the Miami Open and Madrid Open tennis tournaments.
Emanuel said: “We closed out 2024 with continued momentum reflecting strong demand for premium content and live events. Over the next few months, our focus remains on completing our sale of IMG, On Location, and PBR to TKO; closing our take-private transaction with Silver Lake; and ensuring Endeavor is well-positioned for long-term success in representation.”
Endeavor also owns the sports talent agency WME – in Q4, its representation segment brought in revenue of $501.6 million, up year-on-year by 17%. Annual revenue, meanwhile, was up to nearly $1.7 billion.
