Private equity giant Silver Lake is taking Endeavor Group (NYSE:EDR), the controlling investor in franchises such as UFC (Ultimate Fighting Championship) and WWE (World Wrestling Entertainment), private in a $13 billion deal.
The M&A transaction pegs the equity value for Endeavor at $13 billion and the consolidated enterprise value at nearly $25 billion. This is the largest ever private equity-sponsored take-private deal in the media and entertainment sector.
Deal Terms
Silver Lake first invested in EDR in 2012. Since then, EDR’s annual top line has expanded from $350 million to around $6 billion at present. Under the terms, Silver Lake will acquire all of EDR’s outstanding shares (which it does not already own) at $27.50 per share. The consideration indicates a nearly 39% premium over EDR’s 30-day VWAP (Volume Weighted Average Price).
The transaction is expected to close by the end of Q1 2025. Endeavor holds a majority stake in WWE parent TKO Group (NYSE:TKO). Following this deal, TKO will continue to remain publicly traded.
Should I Invest in EDR?
The deal announcement follows a nearly 30% rise in EDR shares over the past six months. Following the announcement of the deal, the stock is trending marginally lower in the early session today. However, EDR’s share price still remains just shy of the $27.50 acquisition price tag today.
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