Silver Lake Group reaches agreement to privatize gaming giant Endeavor Group

Silver Lake announced the acquisition of Endeavor Group Holdings, a historic deal reportedly worth $13 billion.

The agreement to take Endeavor private means shareholders will receive $27.50 per share, a 55% increase from the closing price of $17.72 in October 2023 before Silver Lake proposed a full takeover.

Shares rose to $25.94 in afternoon trading on Tuesday on the news.

Silver Lake, a private equity firm specializing in technology-related investments, is already the largest shareholder of sports entertainment, media and talent management holding company Endeavor.

In 2022, the company added sports betting platform OpenBet to its portfolio and the following year sold sports education institution IMG Academy for an estimated £1. 25 billion.

Endeavor owns a majority stake in TKO Group Holdings, the media conglomerate formed from the merger of WWE and UFC, but aside from this major acquisition, TKO will remain a publicly traded company.

Official reaction to Endeavor Silver Lake deal

“Endeavor’s strategic partnerships with Silver Lake and Egon Durban since 2012 have been critical to our growth into the global sports and entertainment leader we are today,” said CEO Ariel Emanuel.

“We believe this transaction will maximize value for all of Endeavor’s public shareholders and are excited to continue to unlock and invest in future growth opportunities as a private company.”

Egon Durban, co-CEO and managing partner of Silver Lake and chairman of Endeavor’s board of directors, expressed satisfaction with the agreement.

“Together, we have built and grown Endeavor from annual revenue of $350 million when we first invested in 2012 to consolidated revenue of nearly $6 billion today,” he said.

“Aligned with our mission and underscored by this largest commitment in Silver Lake’s history, we will work with the Endeavor team and our trusted lead investors to create value by accelerating growth at scale.”

The Silver Lake acquisition is expected to close by the end of the first quarter of 2025, subject to formal approval from Endeavor’s executive committee.

Image Source: Endeavor/X