Endeavor has gone private in a deal led by Silver Lake Financial, rebranding as WME Group while retaining control over TKO Group Holdings, with Ari Emanuel assuming the role of executive chairman and Mark Shapiro becoming president and managing partner; Patrick Whitesell is leaving to start a new venture backed by Silver Lake.
Endeavor, the talent agency and majority shareholder in TKO Group Holdings, has just sealed a deal to go private. This move is spearheaded by Silver Lake Financial.
The acquisition was announced months ago, but now it’s official. The company will operate under a new public name: WME Group, bidding farewell to the Endeavor brand. Interestingly, WME Group remains the controlling shareholder of TKO, which houses UFC and WWE.
Silver Lake mentioned in a press release that consolidating all of TKO’s value into Endeavor results in a combined total enterprise value of $25 billion. Quite a hefty sum!
Ari Emanuel, who founded Endeavor in 1995, is transitioning into a new role as executive chairman of WME Group. Previously the CEO of Endeavor, he will continue as CEO over TKO. As part of this deal, Emanuel received a $173.8 million cash payout while rolling over ownership interests valued at $290.27 million into the new private entity.
Mark Shapiro, previously president and COO at Endeavor, now takes on the mantle of president and managing partner at WME Group. He retains his roles as president and COO at TKO Group Holdings too.
Meanwhile, Patrick Whitesell, co-founder of Endeavor alongside Emanuel, is departing from WME Group. His next venture? Launching a Silver Lake-backed initiative aimed at investing in sports, media, and entertainment properties.
This split partly stems from Whitesell taking WME’s NFL talent representation business with him. Given Silver Lake co-CEO Egon Durban’s small stake in the Las Vegas Raiders, operating under NFL rules means an owner can’t run a business representing players.
The new WME Group holds onto various entities like the WME talent agency, marketing firm 160over90, IMG licensing, and Pantheon Media Group. It’s quite the portfolio!
“This remarkable moment—and the even more exciting future it launches—is thanks first and foremost to Ari Emanuel and Patrick Whitesell,” Durban said in a press release. Silver Lake has been their partner since 2012, with revenue growing twentyfold over time.
Silver Lake hasn’t sold any shares; instead, they’ve increased their stake due to excitement about the company’s long-term growth outlook. Mark Shapiro is recognized for his leadership in creating massive value.
Despite Endeavor going private, TKO remains publicly traded with no immediate plans to alter that status. TKO comprises UFC, WWE, Professional Bull Riders, IMG marketing agency, and On Location—a premium experience company.
“I am grateful to Egon and the team at Silver Lake for their trust,” Emanuel expressed. With their partnership, they aim to accelerate value creation across WME Group and TKO—an exciting journey ahead!