Endeavor, a major talent agency and the primary owner of TKO Group Holdings, which includes UFC and WWE, has finalized a deal to become a private company again. This move is spearheaded by Silver Lake Financial.
The acquisition, initially announced months prior, 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 of TKO, the parent company of both UFC and WWE.
Silver Lake stated in a press release that they believe incorporating all of TKO`s value into Endeavor results in a combined enterprise value of $25 billion.
Ari Emanuel, who established Endeavor in 1995, is transitioning to the role of executive chairman of WME Group from his previous position as CEO. However, he will remain CEO of TKO. As part of this transaction, Emanuel received a cash payment of $173.8 million and reinvested ownership stakes valued at $290.27 million into the new private company, according to an SEC filing.
Mark Shapiro, formerly president and chief operating officer at Endeavor, is now president and managing partner at WME Group, while also retaining his role as president and COO at TKO Group Holdings.
Patrick Whitesell, co-founder of 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 properties and intellectual property across sports, media, and entertainment. Whitesell`s departure was anticipated and is part of his plan to establish a new company supported by a $250 million investment from Silver Lake.
A contributing factor to this separation is that Whitesell is expected to take WME’s NFL talent representation business with him, operating it as a separate entity. This is due to NFL regulations that prevent owners from also running businesses that represent players, as Silver Lake co-CEO Egon Durban holds a stake in the Las Vegas Raiders.
The new WME Group will encompass the WME talent agency, marketing firm 160over90, IMG licensing, and the unscripted studio Pantheon Media Group.
Egon Durban of Silver Lake expressed that this significant moment is attributed to the strategic vision of Ari Emanuel and Patrick Whitesell, who transformed Endeavor into a global leader in talent, brands, and IP. He highlighted Silver Lake`s pride in partnering with them since 2012, during which Endeavor`s revenue increased twentyfold. Silver Lake`s continued investment underscores their confidence in the company`s long-term growth potential.
Durban also praised Mark Shapiro`s leadership and expressed enthusiasm for ongoing collaboration with the management team, including Richard Weitz, Christian Muirhead, Dana White, and Andrew Schleimer. He acknowledged the clients and partners of these businesses and the anchor investors involved in the transaction.
While Endeavor is becoming private, TKO Group Holdings will remain a publicly traded company. TKO includes UFC and WWE, as well as other entities like Professional Bull Riders, IMG, and On Location.
Ari Emanuel expressed gratitude to Silver Lake for their trust and emphasized the foundation created to enhance value for clients and partners within WME Group and TKO.
