The privatization of media and sports entertainment heavyweight Endeavor, by private equity investment firm Silver Lake, has formally been completed.
The deal, finally unveiled today after having been in the offing since early 2024, has an equity value of $13 billion and a total enterprise value of $25 billion.
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Silver Lake has purchased 100% of the shares in Endeavour (that it doesn’t already own) at $27.50 per share, with the “portfolio of representation businesses” owned by Endeavor to now be called WME Group.
Ari Emanuel, chief executive at Endeavor, initially stated in October 2023 that the behemoth was looking to go private, citing the “dislocation” between Endeavor’s public market value and the value of its assets. Silver Lake first invested in Endeavor in 2012, and the agency went public in 2021.
Endeavor will now no longer be listed on the New York Stock Exchange, with its Class A common stock to cease trading.
Silver Lake has said it believes the agreement represents “the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector.”
In terms of the current Endeavor hierarchy, Patrick Whitesell, executive chair, will now become the chief executive of his own new sports investment vehicle, in partnership with Silver Lake. Whitesell’s new platform – which is as yet unnamed but has secured funding – will be worth $250 million and is set to focus on sport and media investments.
Whitesell – who ran Endeavor as co-CEO alongside Emanuel for several years – will also carry on as a significant Endeavor shareholder.
Over the last few months, Endeavor has significantly rearranged its portfolio of sporting properties to prepare for the Silver Lake deal being completed – it has spun off its IMG (sports agency), On Location (hospitality and events), and Professional Bull Riders (PBR) assets to the TKO vehicle (in which it still has a controlling interest). TKO already contains World Wrestling Entertainment and the Ultimate Fighting Championship.
Egon Durban, co-chief executive and managing partner at Silver Lake, said: “Silver Lake is proud and honored to be their [Endeavor’s executive body] partners since 2012 as they have continued to build the company. Over this period, revenue has grown by twentyfold. Silver Lake has previously invested on six separate occasions to support Endeavor and now, with this latest investment, it is the single largest position in our global portfolio.”
Emanuel added: “I am grateful to Egon and the team at Silver Lake for the trust they have placed in me as a founder and entrepreneur. Together, we have created and enhanced a foundation unlike any other to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue to build and grow.”
Whitesell has also commented: “Our industry is in the very early stages of generational transformation. I have never seen a more promising time for bold and ambitious entrepreneurs, creatives, and athletes.”
Silver Lake also has investments in Madison Square Garden Company (owner of the NBA’s New York Knicks and the NHL’s New York Rangers), New Zealand Rugby, and City Football Group, the collective of soccer clubs headed up by English Premier League powerhouse Manchester City.
The funding for this move has come from a range of sources, including Mubadala Investment Company, DFO Management, Lexington Partners, as well as funds managed by Goldman Sachs Asset Management.
Elsewhere, it has also been confirmed that Endeavor has completed the sale of sports betting platform OpenBet, through a management buyout backed by Emanuel.
The management buyout of OpenBet also involves OpenBet chief executive Jordan Levin, who will continue in that position.
This deal completion follows hot on the heels of the news last week that IMG Arena, which Endeavor has also been working to sell since last year, has been bought up by sports data and technology heavyweight Sportradar, in a deal costing Endeavor $225 million.
The OpenBet deal was unveiled last November, with the buyout group operating as OB Global Holdings, and was described at that point as a “necessary step” for the privatization of Endeavor by Silver Lake to take place.
Both IMG Arena and OpenBet had initially been put up for sale in August, with financial advice during the process provided by both Oakvale Capital and The Raine Group.
Endeavor acquired sports betting platform OpenBet in 2022 for about $800 million and merged it with IMG Arena into one division in February this year.
Levin said: “As this new chapter begins, OpenBet is better positioned than ever to drive market expansion and product innovation while defining the future of betting and gaming entertainment. Our group is extremely excited about OpenBet’s path forward, and we are confident in our business’ long-term growth profile considering our premium product offering, exceptional talent, and existing momentum in the marketplace.”
