Endeavor Group Holdings Inc. (EDR) shares are up more than 4% Friday after a report from Bloomberg said Silver Lake Management is planning to sell parts of EDR after it takes the company private.
Bloomberg, citing people familiar with the private equity firm's plans, said the bid will be delivered in the next few weeks to Endeavor's independent directors, who will hire advisers to assess the terms and make a recommendation.
Silver Lake plans to bring in both new and existing partners to finance the deal.
Silver Lake holds a 71% voting stake in Endeavor. The company is progressing with its plans announced in October, in which it said it was evaluating strategic options. This was due to the company's stock performance, with shares trading below its $24 IPO price from almost three years ago.
Endeavor holds a 51% stake in TKO, the parent of Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), although Bloomberg's sources said TKO is expected to remain publicly traded. In addition, the publication said Endeavor won’t part with its original talent agency business.