(Added information on Silver Lake’s investment in William Morris Endeavor in paragraph 10) by Dawn Chmielewski
Private equity firm Silver Lake said on Wednesday it was working on a proposal to take talent and media company Endeavor Group Holdings EDR.N private, after Endeavor said it had started a study to explore alternatives that better enhance the company’s value.
Endeavor said it was evaluating strategic options but would not consider selling or divesting its majority stake in TKO Group Holdings TKO.N , which includes a stake in Ultimate Fighting Championship.
Silver Lake, which holds approximately 71% of Endeavor’s voting rights, issued a statement saying it was not interested in selling its shares to a third party, nor in bidding for assets within the group. of media.
“Silver Lake is currently working on developing a proposal to privatize Endeavor,” the group said.
Shares of Endeavor rose 24% in extended trading.
In September, French luxury goods billionaire François-Henri Pinault acquired a majority stake in rival Creative Artists Agency, a deal that would value the talent agency at $7 billion.
The Endeavor Group, which has diversified stakes in talent management, live sports and festivals, is valued at approximately $8.4 billion. Chief Executive Ari Emanuel has long argued that Wall Street is undervaluing the company.
“Given the continuing mismatch between Endeavor’s value in the public market and the intrinsic value of its underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we maximize value for our shareholders,” Mr. Emanuel said in a statement.
Endeavor Group and Fenway Sports Group, owner of the Boston Red Sox, had already expressed interest in investing in the PGA Tour, according to a source familiar with the negotiations, Reuters reported in late September.
The private equity firm acquired a minority stake in talent agency William Morris Endeavor in 2012, and Silver Lake co-chief executive Egon Durban and managing partner Stephen Evans serve on the board of directors. Endeavor.
2023-10-25 21:16:30
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