Silver Lake considers taking Endeavor private

Shares in WME’s parent company Endeavor have soared after global investment giant Silver Lake revealed it was working towards a proposal to take the business private.

The disclosure by Silver Lake, which holds a 71% stake in the sports and entertainment firm, came after Endeavor confirmed it was looking at “strategic alternatives” that better value the company.

Endeavor went public two-and-a-half years ago but TBI Vision reports its share price had almost halved from a near $35 peak in December 2021 to $17.72 before surging 25% in the wake of yesterday’s announcements. Silicon Valley-based Silver Lake also owns shares in TEG, Oak View Group, City Football Group and Madison Square Garden Sports.

“Silver Lake is committed to strategies that deliver value for all shareholders of Endeavor,” reads a statement from the private equity firm. “To that end, Silver Lake is currently working toward making a proposal to take Endeavor private. Silver Lake firmly believes in Endeavor’s business and is not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor.

“Silver Lake is the owner of approximately 71% of the voting power of Endeavor. Our co-chief executive officer, Egon Durban, and our managing director, Stephen Evans, serve as members of the Executive Committee of the Board of Directors of Endeavor. Silver Lake has been a committed investor since 2012 and has made significant investments in Endeavor since then to support its growth.”

“We believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximising value for our shareholder”

In addition to WME, Endeavor is also the parent company of sports booking outfit IMG, events business On Location, marketing agency 160over90 and sports data and technology properties IMG Arena and OpenBet.

Endeavor clarifies that it is not considering “the sale or disposition of the company’s interest” in TKO Group Holdings, the new publicly listed company consisting of UFC (Ultimate Fighting Championship) and WWE (World Wrestling Entertainment).

“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximising value for our shareholders,” said Endeavor CEO Ariel Emanuel.

WME-IMG – the mega-agency formed by the 2013 merger of music/media agency William Morris Endeavor and International Management Group – rebranded as Endeavor in 2017. WME‘s music roster includes Justin Timberlake, Adele, Bruno Mars, Pearl Jam, The Killers and Foo Fighters, among others.

Artémis, an investment firm led by billionaire French businessman Francois-Henri Pinault, acquired TPG’s majority stake in WME rival Creative Artists Agency (CAA) last month in a deal that reportedly valued CAA at $7 billion.

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