Private equity firm Silver Lake, the largest investor in Endeavor Group Holdings, Tuesday announced a definitive agreement to take the global sports and entertainment company private at an equity value of $13 billion.
Under the terms of the agreement, Silver Lake will acquire 100% of the outstanding shares it does not already own, other than rolled interests.
Silver Lake believes that when 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, and the largest ever in the media and entertainment sector. On the unaffected date, the equity value was $8.2 billion, and the premium to be paid by Silver Lake represents $4.6 billion more equity value to all Endeavor stockholders.
The transaction builds on multiple investments Silver Lake has made in Endeavor starting with Silver Lake’s initial 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, creating premium sports and entertainment company TKO Group Holdings, Inc. in 2023.
TKO is not party to this transaction and will remain a publicly traded company that will continue to benefit from its connectivity to Endeavor’s expertise, relationships, and significant capabilities.
Silver Lake late last year said it was working to take Endeavor private, after the entertainment giant announced that it had begun a review to explore alternatives that better value the company.
Endeavor had then said that it was evaluating strategic options, but would not consider a sale or disposition of its majority interest in TKO Group Holdings.
