WME parent Endeavor to go private in $13bn deal

WME parent company Endeavor will be acquired by majority shareholder Silver Lake in a deal valued at $13 billion.

Endeavor, a Los Angeles-based sports and entertainment giant, has publicly traded as “EDR” on the New York Stock Exchange since April 2021.

Last year, private equity company Silver Lake (which also owns shares in TEG and Oak View Group) announced its intention to take Endeavor private, causing the share price to surge by 25%.

The Silicon Valley-based PE firm yesterday (2 April) confirmed it will acquire all outstanding shares, with Endeavor stockholders receiving $27.50 per share.

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.

TKO Group Holdings, Endeavor’s publicly listed company consisting of UFC (Ultimate Fighting Championship) and WWE (World Wrestling Entertainment), is not included in the $13 bn deal.

“Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban have been central to our evolution into the global sports and entertainment leader we are today,” says Ariel Emanuel, CEO of Endeavor.

“We have built and grown Endeavor from $350m in annual revenue when we first invested in 2012 to nearly $6 bn in consolidated revenue today”

“We believe this transaction will maximize value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.”

Egon Durban, Co-CEO and Managing Partner of Silver Lake, and Chairman of the Board of Endeavor, said: “Our unwavering belief in Ari and Patrick, together with Mark and other talented leaders at Endeavor, has never been stronger. This is a very special partnership.

“Together, we have built and grown Endeavor from $350 million in annual revenue when we first invested 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. Consistent with our mission and underscored by this commitment being among the largest in Silver Lake’s history, we are all in on working with the Endeavor team and our trusted anchor investors to create value by accelerating growth at scale.”

Silver Lake made its initial investment in WME in 2012. In late 2013, it bought fashion and sports-focused talent agency IMG for $2.4 billion and rolled up both acquisitions into WME-IMG. The mega-agency was rebranded as Endeavor in 2017.

WME’s music roster includes Justin Timberlake, Adele, Bruno Mars, Pearl Jam, The Killers and Foo Fighters, among others.

Earlier this year, Silver Lake, which also has interests in City Football Group and Madison Square Garden Sports, secured a A$1.1 billion (€663.8 million) dividend recapitalisation for Australian live entertainment giant TEG after attempts to sell the company reportedly stalled.

Get more stories like this in your inbox by signing up for IQ Index, IQ’s free email digest of essential live music industry news.

Read More Like This

News|22 Feb 2024

Kilimanjaro Live launches new parent company

The company's 16 live entertainment brands will now operate under the new umbrella company KMJ Entertainment

News|13 Mar 2024

Kili parent KMJ Entertainment acquires ShowPlanr

Formed as MRC Presents in 2010, ShowPlanr has grown to be one of the leading independent event promoters in the UK

News|14 Dec 2023

WME announces first-ever regional office leads

Brian Ahern and Josh Javor are among the execs with new titles, under a revised organisational structure in the contemporary music dept

News|15 Mar 2024

WME hires agent to represent creative directors

Erin Kapor brings more than a decade of experience in creative representation and strategy to the talent agency