Endeavor, a major talent agency and the primary shareholder in TKO Group Holdings (the parent company of UFC and WWE), has finalized a deal to become a private company again. This move is spearheaded by Silver Lake Financial.
While the acquisition was announced previously, it is now complete. 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 Group Holdings, which oversees both UFC and WWE.
Silver Lake stated in a press release that they believe consolidating TKO`s value into Endeavor results in a combined enterprise value of $25 billion.
Ari Emanuel, who founded Endeavor in 1995, will transition to the role of executive chairman of WME Group, having previously served as CEO. He will remain CEO of TKO. As part of this deal, Emanuel received a cash payment of $173.8 million and reinvested ownership interests valued at $290.27 million into the new private company, according to an SEC filing on Monday.
Mark Shapiro, formerly President and COO of Endeavor, is now President and Managing Partner at WME Group. He also retains his position as President and COO at TKO Group Holdings.
Patrick Whitesell, who co-founded Endeavor with Emanuel, is departing WME Group to launch a new venture backed by Silver Lake. This venture will focus on investing in and expanding sports, media, and entertainment properties and intellectual property. Whitesell`s departure was anticipated and is part of a strategy that includes a $250 million investment from Silver Lake for his new company.
One reason for this separation is that Whitesell is expected to take over WME’s NFL talent representation business but operate it as a separate entity. This is because Silver Lake co-CEO and managing partner Egon Durban holds a minority stake in the Las Vegas Raiders, and NFL rules prohibit team owners from also running businesses that represent players.
The new WME Group will encompass the WME talent agency, marketing firm 160over90, IMG licensing, and unscripted studio Pantheon Media Group.
“This remarkable moment, and the exciting future it begins, is primarily thanks to Ari Emanuel and Patrick Whitesell, and their relentless and ambitious vision over two decades to build Endeavor into a global leader in talent, brands, and IP across entertainment, media, and sports,” said Durban in a press release. “Silver Lake is proud to have been their partner since 2012 as they continued to build the company. Over this time, revenue has increased twentyfold. Silver Lake has invested in Endeavor six times previously, 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 because we are very enthusiastic about the company`s long-term growth prospects. Mark Shapiro is an impressive, driven, creative, and determined leader who is generating significant value. We look forward to continuing our work 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 TKO leadership—all of whom are industry leaders. We appreciate 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 becoming private, TKO Group Holdings will remain a publicly traded company and has no plans to change this in the near future. TKO includes UFC and WWE, along with other assets like Professional Bull Riders, marketing agency IMG, and premium experience company On Location.
“I am grateful to Egon and the Silver Lake team for their trust in me as a founder and entrepreneur,” Emanuel stated. “Together, we have built a unique foundation to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue developing and growing.”
