Endeavor, a major talent agency and the primary shareholder of TKO Group Holdings, has finalized its move to become a private company once again. This deal was spearheaded by Silver Lake Financial.
While the acquisition was initially announced several months prior, it is now complete. As a result, the company will operate under the new name WME Group, phasing out the Endeavor brand. WME Group will continue to be the controlling shareholder in TKO, which owns both UFC and WWE.
According to a press release from Silver Lake, they believe that incorporating all of TKO`s value into Endeavor results in a combined enterprise value of $25 billion.
Ari Emanuel, the founder of Endeavor in 1995, will transition to the role of executive chairman of WME Group, stepping down from his previous position as CEO. However, he will remain CEO of TKO. As part of the deal, Emanuel received a cash payment of $173.8 million and reinvested ownership interests valued at $290.27 million into the newly private company, as indicated in an SEC filing on Monday.
Mark Shapiro, formerly President and Chief Operating Officer at Endeavor, is now the President and Managing Partner at WME Group. He retains his position as President and COO at TKO Group Holdings.
Patrick Whitesell, who co-founded Endeavor with Emanuel, is departing from WME Group to launch a new venture backed by Silver Lake. This venture will focus on investing in and expanding properties and intellectual property across sports, media, and entertainment. Whitesell`s departure was anticipated and is part of his plan to establish a new company with a $250 million investment from Silver Lake.
One of the reasons for this separation is that Whitesell is expected to take over WME’s NFL talent representation business, which will operate as a separate entity. This is due to NFL regulations preventing owners from also running businesses that represent players. Egon Durban, co-CEO and managing partner at Silver Lake, holds a minority stake in the Las Vegas Raiders, creating this potential conflict of interest.
The new WME Group will encompass the WME talent agency, marketing firm 160over90, IMG licensing, and unscripted studio Pantheon Media Group.
Durban stated in a press release, “This remarkable moment, and the even more exciting future it begins, is primarily thanks to Ari Emanuel and Patrick Whitesell, and their relentless and ambitious strategic vision over two decades to build Endeavor into a global leader in talent, brands, and IP across entertainment, media, and sports. Silver Lake is proud to have been their partner since 2012 as they have continued to develop the company. Over this period, revenue has increased twentyfold. Silver Lake has invested in Endeavor on six previous occasions and this latest investment makes it our single largest holding in our global portfolio.”
“Silver Lake has never sold a share, instead increasing our stake as we remain highly enthusiastic about the company’s long-term growth prospects. Mark Shapiro is an impressive, driven, creative, and resolute leader who is generating substantial value. We are eager to continue our work and partnership with him and the rest of the management team—including Richard Weitz and Christian Muirhead at WME Group and Dana White, Andrew Schleimer, and the entire TKO leadership—all of whom are industry leaders. We are grateful to all of the clients and partners these businesses are dedicated to serving, as well as the anchor investors who have joined us in this transaction.”
While Endeavor is transitioning to private ownership, TKO will remain a publicly traded company with no current plans to change this status. TKO includes UFC and WWE, along with other assets like Professional Bull Riders, marketing agency IMG, and premium experience company On Location.
Emanuel commented, “I am thankful to Egon and the Silver Lake team for their confidence in me as a founder and entrepreneur. Together, we have established a unique and powerful foundation to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue to build and expand.”
