Endeavor, owner of Hollywood talent agency WME, announced Tuesday that the company will be taken private by its largest investor, private equity firm Silverlake, three years after the Beverly Hills-based entertainment giant made its stock market debut. announced that it would be done.
Under the agreement, Silver Lake will acquire all outstanding shares of Endeavor not owned by Silver Lake. Endeavor shareholders will receive $27.50 in cash per share, a 55% premium to the closing price of $17.72 before Endeavor announced plans to explore strategic alternatives. The company announced it would be acquired for a stock value of $13 billion.
“We believe this transaction maximizes value for all of Endeavor's public shareholders, and as a private company we continue to develop and invest in future growth opportunities,” Ari Emanuel, Endeavor's chief executive officer, said in a statement. I'm excited about it.''
Endeavor-backed TKO, a publicly traded venture company that owns UFC and WWE, was not involved in the deal, the company said. According to Silver Lake, if all of TKO's value were combined into Endeavor, the total enterprise value would be $25 billion.
Over the years, Endeavor has grown into a diversified entertainment company, owning not only WME but also Professional Bull Riders, live event experience business On Location, and other entertainment-related businesses. Endeavor executives were bullish that these various pieces of entertainment would be attractive and successful businesses, but some investors were skeptical.
The company's stock had struggled to deliver the returns investors desired.
Endeavor stock rose 2% to $25.89 per share in midday trading Tuesday.