Endeavor’s Media and Entertainment Empire Heads Back into Private Equity: $13 Billion Deal with Silver Lake Capital.

Patrick Whitesell’s New Business to Receive $250 Million Investment from Silver Lake

Private equity firm Silver Lake Capital has announced plans to take Endeavor private in the largest media and entertainment acquisition of the past decade. The deal is valued at $13 billion, with Endeavor’s equity value pegged at that amount. After three years as a public company, big investors weren’t happy with the stock price valuation, leading to the decision to go private.

The merger agreement calls for “reasonable best efforts” to facilitate, negotiate and consummate the sale, transfer, divestiture or other disposition of assets, excluding all or part of publicly traded TKO Group and the agency representation business of William Morris Endeavor Entertainment. As reported yesterday, Endeavor will be privatized what it called the largest in media and entertainment history.

Endeavor’s executive chairman Patrick Whitesell will be branching out with a new business venture. He will receive an investment of $250 million into a new business that he will manage and control. The business will focus on investing in and providing services to companies in the entertainment, media, and sports industries; developing, producing, financing and exploiting film, television and digital audio-visual content; talent management; and consulting with other entertainment companies.

As per an SEC filing today that includes new contract details for Endeavor’s top executives, CEO Ari Emanuel has been given ownership of one of Endeavor’s private planes as part of his compensation package. COO Mark Shapiro’s base salary will rise to $7 million a year starting April 2nd 2024 with a guaranteed annual bonus equal to $15 million. Emanuel has also been given a $25 million “asset sale transaction bonus” following the sale or disposition of certain specified assets which is yet unclear how it would be triggered but this move indicates that there may be potential asset sales on horizon except for TKO Group

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