Endeavor Group Holdings, a global sports and entertainment company and the owner of TKO Holdings, is to be acquired by tech investment firm Silver Lake, in partnership with the Endeavor management team and additional anchor investors, in a take private deal with an equity value of $13bn.
Under the terms of the agreement, Silver Lake will acquire 100% of the outstanding shares it does not already own, other than rolled interests. Endeavor stockholders will receive $27.50 per share in cash, representing a 55% premium to the unaffected share price of $17.72 per share at market close on 25 October, 2023, the last full trading day prior to Endeavor’s announcement of its review of strategic alternatives, and a 39% premium to Endeavor’s unaffected 30‐day VWAP.
While Endeavor is being acquired at an equity value of $13bn, Silver Lake believes that when consolidating all of TKO’s value into Endeavor, the combined total enterprise value of $25bn 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 $8.2bn, and the premium to be paid by Silver Lake represents $4.6bn more equity value to all Endeavor stockholders.
The transaction builds on multiple investments Silver Lake has made in Endeavor starting with the firm’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.
The transaction, which is subject to the satisfaction of customary closing conditions and required regulatory approvals, is expected to close by the end of the first quarter of 2025. Upon completion of the transaction, Endeavor’s common stock will no longer be listed on any public market.
