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 vale 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.
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.
Mark Shapiro, who was president of Endeavor, will become president and managing partner of WME Group. (Shapiro also continues as president and COO of TKO.) WME co-chairs Richard Weitz and Christian Muirhead will continue to lead the agency as co-chairs, reporting to Shapiro.
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 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 leave with WME’s NFL talent agent department, which will adopt the name WME NFL 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.
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. However, Endeavor Group Holdings Inc. is the name of the privately held parent company of WME Group; Endeavor Group Holdings also retain its controlling ownership stake of about 60% in TKO Group, which comprises UFC, WWE, IMG, On Location and PBR and remains publicly traded on the New York Stock Exchange.
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.
Egon Durban said: “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 twenty years to build Endeavor into a global powerhouse across talent, brands, and IP spanning entertainment, media, and sports. Silver Lake is proud and honored to be their partners since 2012 as they have continued to build the company. Over this period, revenue has grown by twentyfold. Silver Lake has previously invested on six separate occasions to support Endeavor and now, with this latest investment, it is the single largest position in our global portfolio.”
Mark Shapiro said: “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.”
Emanuel said: “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.”
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.”
