Endeavor, the sports and entertainment company led by Hollywood super agent Ari Emanuel, announced Tuesday that it plans to take it private with the help of investment firm Silver Lake, which has provided financial backing for years.
Under the terms of the transaction, Silver Lake will purchase any Endeavor shares it does not already own for $27.50 in cash. This price is 55% higher than the price at which Endeavor stock traded on October 25, the day before Endeavor announced it was exploring trading options.
The transaction values Endeavor at $13 billion, including debt.
The long-awaited deal heralds a new era for Endeavor, whose ambitious growth story has failed to garner traction on Wall Street.
For more than a decade, Emanuel and business partner Patrick Whitesell have been trying to transform what started as a talent agency, with clients including Dwayne Johnson and Ben Affleck, into a new kind of media powerhouse. .
Backed by Silver Lake, one of the largest investors in technology and media companies, Endeavor owns a series of companies including talent agency IMG, Ultimate Fighting Championship, and World Wrestling Entertainment. Continued acquisitions. He merged the UFC and WWE and created a new company, TKO Group, which went public last year.
“We believe this transaction maximizes value for all of Endeavor's public shareholders, and we are excited to continue to develop and invest in future growth opportunities as a private company,” Emanuel said in a statement.