BEVERLY HILLS, Calif. & MENLO PARK, Calif. - Endeavor Group Holdings, Inc. (NYSE: EDR), a global sports and entertainment company, has agreed to a buyout by private equity firm Silver Lake. The deal, valued at $13 billion in equity and $25 billion in consolidated enterprise value, will see Endeavor stockholders receive $27.50 per share in cash, a 55% premium over the unaffected share price.
This acquisition marks the largest take-private in the media and entertainment sector and the largest private equity sponsor take-private in the past decade. Endeavor CEO Ariel Emanuel expressed confidence that this move will maximize stockholder value and enable further growth as a private entity.
Silver Lake, which has been a strategic partner to Endeavor since 2012, will finance the transaction with a mix of new and reinvested equity, alongside capital from Mubadala Investment Company and others. The deal is expected to close by the end of the first quarter of 2025, subject to regulatory approvals and customary closing conditions.
Silver Lake Co-CEO Egon Durban praised the partnership and Endeavor's growth under their collaboration, which has seen revenue increase from $350 million to nearly $6 billion annually. The transaction is built on multiple investments Silver Lake has made in Endeavor, including the acquisition of UFC and the merger with WWE to create TKO Group Holdings, Inc. (NYSE: TKO).
The transaction was unanimously approved by a Special Committee of independent directors and the Executive Committee of Endeavor. Upon completion, Endeavor's common stock will be delisted from public markets.
The advisors involved in the transaction include BDT & Company, MSD Partners, Goldman Sachs & Co. LLC, and others for Silver Lake, with Latham & Watkins LLP advising Endeavor. The Special Committee was advised independently by Centerview Partners LLC and Cravath, Swaine & Moore LLP.
This deal is based on a press release statement and further details will be disclosed in Endeavor's Current Report on Form 8-K.
InvestingPro Insights
The acquisition of Endeavor by Silver Lake has brought TKO Group Holdings, Inc. (NYSE: TKO) into the spotlight, showcasing the company's financial metrics and future prospects. According to InvestingPro data, TKO Group Holdings boasts a market capitalization of $15.2 billion, reflecting a significant presence in the entertainment sector. In the last twelve months as of Q4 2023, TKO has seen a substantial revenue growth of 46.91%, indicating a strong upward trajectory in earnings. This is further bolstered by a quarterly revenue growth of 125.92% in Q4 2023, suggesting that the company's recent initiatives may be yielding positive results.
Despite not paying dividends, which may be a consideration for income-focused investors, TKO Group Holdings is trading at a high valuation multiple across EBIT, EBITDA, and revenue. This could point to high expectations from the market regarding the company's future performance. The InvestingPro Tips highlight that analysts expect TKO to turn profitable this year, which could be a pivotal moment for the company. Additionally, the moderate level of debt operated by TKO provides a balanced financial structure that could support sustainable growth.
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