Silver Lake to buy Endeavor Group for $13 billion

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on Apr 2, 2024
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  • Silver Lake is willing to pay $27.50 for each share of Endeavor Group.
  • $EDR will no longer be a publicly listed company following this transaction.
  • Endeavor stock is currently up about 50% versus its low in late October.

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Silver Lake just announced plans of buying Endeavor Group Holdings Inc (NYSE: EDR) for $13 billion (equity value). Shares of the entertainment company were halted before the announcement.

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Endeavor stock valued at a 10% premium

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The private equity firm is willing to pay $27.50 a share for $EDR which translates to a near 10% premium on its previous close.

Endeavor will no longer be a publicly listed company following the completion of this transaction. Ariel Emanuel – its chief executive said in a press release today:

We believe this transaction will maximise value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.

Note that Endeavor stock is currently up close to 50% versus its low in late October.

Silver Lake-Endeavor deal will close in 2025

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Silver Lake expects the acquisition to complete in the first quarter of 2025 provided that it meets the customary closing conditions including regulatory approvals. Endeavor, however, does not require shareholders approval for this deal.

The entertainment firm based out of Beverly Hills, California had a revenue for $350 million only when Silver Lake first invested in it in 2021. Today, it’s consolidated revenue sits at a whopping $6.0 billion, as per Egon Durban – managing partner of the private equity company.

It is also worth mentioning that the Silver Lake – Endeavor deal that has a total enterprise value of $25 billion is the “largest private equity sponsor public-to-private investment transaction in over a decade”, as per the press release on Tuesday.

Last year, $EDR bought World Wrestling Entertainment Inc (WWE) for about $9.5 billion as Invezz reported here.

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