Silver Lake To Acquire 100% of Endeavor in a $13 Billion Deal

Article by : Milena Petrovska Apr 8, 2024

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Silver Lake has reached an agreement to purchase 100% of Endeavor’s outstanding shares in a massive $13 billion deal. According to the details, Silver Lake will acquire Endeavor for $27.5 per share.

Endeavor itself is valued at $8.2 billion, but the $13 billion price tag includes the company’s debt.

The transaction is set to complete in the first quarter of 2025. According to Endeavor CEO Ariel Emanuel, it would maximize the value for all of the company’s shareholders and further unlock the potential for growth in the coming years.

Ongoing Negotiations Since October 2023

Back in October, Endeavor, which owns OpenBet, IMG Arena, and entertainment agencies IMG and WME, announced a strategic review. At the time, Emanuel noted that the review was a big priority as it would create a direction in which the company would move forward.

Silver Lake was quick to respond, announcing that it was already working on a taking over proposal. In an official response to Endeavor’s review announcement, the private company said that the proposal was part of its process of creating strategies that would benefit Endeavor’s shareholders.

Earlier, Endeavor officially announced that it wouldn’t entertain the idea of selling TKO Group. During that time, Silver Lake owned 71% of the voting power at Endeavor. Initially, Silver Lake invested in Endeavor in 2012 and supported the latter’s takeover of UFC in 2016.

TKO Group Holdings Not Included in the Acquisition

In a joint statement, Endeavor and Silver Lake noted that TKO Group Holdings wasn’t part of the acquisition. Instead, TKO will remain a publicly traded company and continue to benefit from its connection to Endeavor.

TKO Group was formed last year after the merger between the UFC and WWE.

Egon Durban, Silver Lake’s co-CEO and managing partner, shared a few words on the takeover. He stated that the company’s trust in Emanuel, Patrick Whitesell (executive chairman), Mark Shapiro (president-COO), and other leaders had never been higher.

He went on to say that the Silver Lake-Endeavor partnership was “special,” He further explained how the two companies together increased Endeavor’s annual revenue from $350 million in 2012 to almost $6 billion in 2023. In 2022, Endeavor’s revenue was $5.26 billion.

Even though TKO Group is now a major part of Endeavor, its exclusion from the acquisition won’t be as problematic as it sounds. Both OpenBet and IMG Arena are part of the Sports Data & Technology operation at Endeavor. These two entities generated $469.8 million in the 2023 fiscal year, an 80.3% YoY increase.

The Sports Data & Technology division was responsible for 7.8% of Endeavor’s total revenue during that time frame. In Q4 of 2023, Endeavor reported $1.58 billion in revenue.

Jordan Lublin, Endeavor’s CFO, commented on the company’s full-year earnings. Lublin acknowledged that IMG Arena had major growth, especially after acquiring Leap Gaming in April 2023.

IMG also gained exclusive media rights for 85 CAF territories until 2025.