WME owner Endeavor to go private again after three-year run as a public company
Wendy Lee April 2, 2024
Endeavor,
the owner of Hollywood talent agency WME,
said Tuesday that it will be taken private by its largest investor, private equity firm Silver Lake, three years after the Beverly Hills-based entertainment giant made its stock market debut.
Under the deal, Silver Lake will acquire all outstanding shares of Endeavor that it does not own. Endeavor stockholders will get $27.50 per share in cash, a 55% premium from the closing price of $17.72 before Endeavor announced its plan
to
consider strategic alternatives. The company said it is being acquired at an equity value of $13 billion.
“We believe this transaction will maximize value for all of Endeavors public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company,” said Endeavor Chief Executive Ari Emanuel in a statement.
Endeavor-backed
TKO, the publicly traded venture that owns UFC and WWE, is not party to the transaction,
the company said
. Silver Lake says that when consolidating all of TKOs value into Endeavor, the combined total enterprise value is $25 billion
will make this the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector,” Endeavor said in a press release
.
Over the years, Endeavor has grown to be a diversified entertainment company, owning not just WME, but also Professional Bull Riders, live events experiences business On Location and other entertainment-related businesses. While Endeavor executives were bullish that these different parts of entertainment would make for a compelling and successful business, some investors were skeptical
over the value of the business as a whole and that was reflected in the company’s stock price
.
The company’s stock struggled to deliver the returns investors wanted.
Endeavor stock rose 2% to $25.89 a share in midday trading on Tuesday.
Egon Durban, Co-CEO and Managing Partner of Silver Lake, and Chairman of the Board of Endeavor, said his belief in Endeavor’s leaders, “has never been stronger,” noting that Endeavor has grown from $350 million in revenue in 2012 to nearly $6 billion in consolidated revenue today.” Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events with bold vision,” Durban said. “Consistent with our mission and underscored by this commitment being among the largest in Silver Lakes history, we are all in on working with the Endeavor team and our trusted anchor investors to create value by accelerating growth at scale.”
