Silver Lake, the US-based private equity firm, is reportedly looking to sell off parts of Endeavor, the sports and entertainment company that controls multiple top-tier sporting properties, after taking the group private.
Citing sources close to the matter, news outlet Bloomberg said Silver Lake will take its proposal to Endeavor’s independent directors, who will then hire advisers to weigh the terms and make recommendations.
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Endeavor holds the majority interest in TKO Group Holdings, (the publicly-listed company that has merged Endeavor’s Ultimate Fighting Championship (UFC) with the World Wrestling Entertainment (WWE) promotion), the IMG talent representation and sports marketing agency behemoth, and the Professional Bull Riders (PBR) circuit, as well as the WME Sports talent representation agency, which has many of golf’s biggest stars among its clients.
The report did not identify which parts of Endeavor would be sold off but said WME would not be affected.
The move comes after Silver Lake confirmed it is working towards taking Endeavor private in October, with Endeavor’s chief executive Ari Emanuel saying: “Given the continued dislocation between Endeavor's public market value and the intrinsic value of Endeavor's underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders.”
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At the time, the company said there would be no sale – full or partial – of its majority interest in TKO Group Holdings. Endeavor holds a 51% controlling stake in that venture.
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By GlobalDataSilver Lake currently holds around 71% of the voting power in Endeavor, with the pair having been partners since 2012. Egon Durban, co-chief executive of Silver Lake, is currently on the board of directors at Endeavor, as is the private equity firm’s managing partner Stephen Evans.
The private equity firm also holds stakes in the City Football Group soccer club ownership structure, sports merchandise firm Fanatics, and New Zealand Rugby.
