Personal equity organization Silver Lake has agreed to purchase Endeavor Team Holdings (NYSE: EDR), the leisure conglomerate chaired by Hollywood tremendous-brokers Ari Emanuel and Patrick Whitesell.
Silver Lake by now owns 31% of Endeavor’s excellent shares (it was an early trader). The business will shell out $27.50 in funds per share to get out the remaining buyers, valuing Endeavor at $13bn.
With this offer, Silver Lake has arrive total circle with Endeavor Team. The agency financed Endeavor’s acquisition-driven advancement strategy and aided it mature into a publicly traded corporation. It’s now getting all of Endeavor to increase to its $100bn+ portfolio.
Endeavor Team started as William Morris Endeavor (WME), 1 of Hollywood’s most important talent companies run by Emanuel and Whitesell. Around time, the organization obtained many amusement enterprises, together with sports activities agency IMG and martial arts promoter UFC, and morphed into a entire-fledged conglomerate. Its acquisitions have been financed generally with fairness and financial debt funding from Silver Lake.
- Endeavor Team mentioned its shares on the general public markets in 2021 at a valuation of $10bn. In April 2023, the corporation spun off its prized UFC asset and merged it with wrestling promoter WWE to sort TKO Team Holdings, a separate publicly traded organization.
- Endeavor holds a 51% stake in TKO Team Holdings (NYSE: TKO) worth about $8bn. Silver Lake will believe handle of that stake just after attaining Endeavor.
Listed here are some exciting bits from SEC filings pertaining to the buyout:
- Endeavor main govt Ari Emanuel will acquire a $25mn hard cash bonus as soon as the acquisition closes. He’s also entitled to 2.5% of internet revenue from the WME talent agency small business.
- Silver Lake will offer $250mn seed funding to a new media organization led by Endeavor Chairman Patrick Whitesell. If Whitesell isn’t appointed Chairman of the WME talent company right after the acquisition, he’s entitled to a one-time $60mn funds reward. But if he receives the posture, he’s entitled to 2.5% of internet profits from the expertise agency organization, just like Emanuel.
- Endeavor Group President Mark Shapiro will obtain as a lot as a $100mn bonus from the merger, contingent on various things. His once-a-year base salary has been hiked from $3mn to $7mn, and he’ll obtain a $15mn assured once-a-year bonus even though used at the recently personal Endeavor.
- Silver Lake owes Endeavor a $705mn termination payment if it walks absent from the deal. Endeavor owes Silver Lake a $289mn separation charge if it accepts another acquisition give.
The acquisition is predicted to close in the first quarter of 2025.
The submit PE Firm Silver Lake To Buy Endeavor Group For $13B appeared to start with on The Techee.