Endeavor, a major talent agency and the primary owner of TKO Group Holdings (which includes UFC and WWE), has finalized its move to become a private company again. This deal was spearheaded by Silver Lake Financial.
While the acquisition was initially announced some months ago, it is now complete. As a result, 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.
According to a press release from Silver Lake, they believe that incorporating all of TKO`s value into Endeavor brings the total combined enterprise value to $25 billion.
Ari Emanuel, the founder of Endeavor in 1995, will transition to the role of executive chairman of WME Group. He previously served as CEO of Endeavor but will remain CEO of TKO. As part of this agreement, Emanuel received a cash payment of $173.8 million and is reinvesting ownership interests valued at $290.27 million into the new private company, as indicated in an SEC filing on Monday.
Mark Shapiro, formerly President and Chief Operating Officer of Endeavor, is now the President and Managing Partner at WME Group. He also retains his position as President and COO of TKO Group Holdings.
Patrick Whitesell, who co-founded Endeavor with Emanuel, is departing from WME Group to launch a new venture, supported by Silver Lake, with a $250 million investment. This new venture will focus on investing in and developing properties and intellectual property across sports, media, and entertainment. Whitesell`s departure was anticipated and part of his plan to create a new company with Silver Lake`s backing.
One of the reasons for this separation is that Whitesell is expected to take over WME’s NFL talent representation business as a separate entity. This is due to NFL regulations preventing owners from operating businesses that represent players. Egon Durban, co-CEO and managing partner at Silver Lake, holds a minor stake in the Las Vegas Raiders, creating this potential conflict of interest.
The WME Group will continue to encompass the WME talent agency, marketing firm 160over90, IMG licensing, and the unscripted studio Pantheon Media Group.
In a press release, Durban stated, “This significant moment, and the exciting future it begins, is primarily thanks to Ari Emanuel and Patrick Whitesell, and their persistent and ambitious strategic vision over two decades to build Endeavor into a global powerhouse across talent, brands, and IP in entertainment, media, and sports. 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 on six prior occasions and this latest investment marks our largest single position in our global portfolio.”
Durban added, “Silver Lake has never sold a share, instead increasing our stake, as we remain 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 our continued partnership 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 leaders in their industry. 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 now private, TKO remains a publicly traded company and there are no current plans to change this. TKO includes UFC and WWE, along with other assets such as Professional Bull Riders, the marketing agency IMG, and On Location, a premium experience and hospitality company.
Emanuel commented, “I am thankful to Egon and the Silver Lake team for their trust in me as a founder and entrepreneur. Together, we have established a unique and powerful foundation to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue developing and expanding.”
