It’s the end of the line for Endeavor, at least as the company’s public-facing name.
On Monday, Endeavor announced the closing of the deal to go private with private-equity firm Silver Lake. With the move, Endeavor is changing its name to WME Group, reflecting its refocusing on the representation business.
According to Silver Lake, when consolidating all of the value of TKO Group (parent of UFC, WWE and more) into Endeavor, the combined total enterprise value of the company is $25 billion — making it the largest private-equity sponsor public-to-private investment transaction in more than a decade and the largest ever in the media and entertainment sector.
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Ari Emanuel, who founded the talent agency in 1995 and most recently served as CEO of Endeavor, is now executive chairman of WME Group. He also continues as CEO and executive chair of TKO Group. In addition, Emanuel will remain an active agent for such heavyweight WME clients as Martin Scorsese, Larry David, Pete Berg and Mark Wahlberg.
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Mark Shapiro, who was president and chief operating officer of Endeavor, will become president and managing partner of WME Group. (Shapiro also continues as president and COO of TKO.) Richard Weitz and Christian Muirhead, who have served as co-chairs of WME since the fall of 2022, are now co-chairmen of WME Group and continue to lead the agency, reporting to Shapiro.
SEE ALSO: Ari Emanuel Gets $173.8 Million Cash Payout From Endeavor Go-Private Deal With Silver Lake
As previously announced, with the Silver Lake transaction close, longtime Endeavor/WME co-leader Patrick Whitesell will become the CEO and founder of a new, yet-to-be-named start-up with $250 million in funding from Silver Lake to invest in and develop properties and IP across sports, media and entertainment.
Whitesell also is expected leave with WME’s NFL talent representation business, which will continue to be called WME Football but will operate autonomously from WME. The reason for this: Silver Lake co-CEO Egon Durban bought a small stake in the Las Vegas Raiders late last year and under league rules, an NFL team owner cannot have business ties to an entity that represents players. Hence, Whitesell is taking over that department and turning it into a separate entity. However, WME is still allowed and expected to continue representing retired NFL players and coaches (including Peyton Manning, Tom Brady and Shannon Sharpe) for broadcast and content opportunities.
WME Group is the new name for the portfolio of representation businesses that includes talent agency WME, brand-licensing agency IMG Licensing, marketing agency 160over90, and nonscripted content business Pantheon Media.
The Endeavor name will no longer be used publicly. As of Monday, Endeavor shares ceased trading on the New York Stock Exchange (where they had been listed under the “EDR” ticker symbol). However, Endeavor Group Holdings Inc. is the name of the privately held parent company of WME Group; Endeavor Group Holdings also retains its controlling ownership stake of about 61% in TKO Group, which comprises UFC, WWE, IMG, On Location and PBR and remains publicly traded on the NYSE.
Silver Lake now holds approximately 87% of the total voting securities of Endeavor Group Holdings Inc. The equity financing for the Endeavor go-private transaction includes a combination of new and reinvested equity from Silver Lake; additional capital from Mubadala Investment Company, DFO Management (the family investment office of Dell Technologies founder, chairman and CEO Michael Dell and his family), Lexington Partners, funds managed by Goldman Sachs, and CPP Investments; and equity rolled over by individuals including Emanuel, Whitesell and Shapiro.
In connection with the closing of the go-private pact, three Endeavor board members — Fawn Weaver, Ursula Burns and Jacqueline Reses — resigned. At the same time, Karen King, John Suo and Mark Shapiro were appointed to the board and Ari Emanuel, Egon Durban and Stephen Evans remained on the board.
Durban said in a statement: “This remarkable moment — and the even more exciting future it launches—is thanks first and foremost to Ari Emanuel and Patrick Whitesell, and to the relentless and ambitious strategic vision they have shared for more than 20 years to build Endeavor into a global powerhouse across talent, brands, and IP spanning entertainment, media and sports.” Silver Lake previously invested on six separate occasions to support Endeavor and the company now is the single largest position in its portfolio, Durban said.
Emanuel commented: “I am grateful to Egon and the team at Silver Lake for the trust they have placed in me as a founder and entrepreneur. Together, we have created and enhanced a foundation unlike any other to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue to build and grow.”
Shapiro said in a statement: “Our ability to deliver landmark partnerships, career-defining business opportunities, and enduring cultural moments is amplified by this transaction and the formation of WME Group. The Silver Lake team has proven time and again that they are all-in on representation and content, and our clients, partners, and employees will thrive under our new structure.”
And Whitesell said: “Everything we built at Endeavor would not have been possible without the partnership of Egon and the entire Silver Lake team. Our industry is in the very early stages of generational transformation. I have never seen a more promising time for bold and ambitious entrepreneurs, creatives and athletes.”
Also Monday, Endeavor Group Holdings announced the completion of the sale of OpenBet, a betting and gaming entertainment company, in a management buyout backed by Emanuel with participation from OpenBet executives including Jordan Levin, who continues to lead the business as CEO. Endeavor had announced the deal to sell OpenBet and the IMG Arena business, which works with sportsbook brands to provide official livestreaming video and data feeds for thousands of events annually, for $450 million in November.
— Cynthia Littleton contributed to this article.
