TKO’s majority owner has completed its expected transition to private ownership
Endeavor announced on Monday it completed its transition into becoming a private company, finalizing its acquisition by private equity firm Silver Lake. This move has been in the works for months and was long expected. Importantly, this development changes very little for TKO Group Holdings.
TKO, which includes UFC and WWE, remains a publicly traded company with Endeavor still holding control because it owns the majority of TKO shares. The take-private action of Endeavor doesn’t change the ownership structure of TKO, and no operational changes for TKO are expected as a result. TKO will continue to be overseen by CEO Ari Emanuel and COO Mark Shapiro, who held the same titles with Endeavor. Patrick Whitesell until now had been Endeavor’s Executive Chairman. He’s leaving the company to start a new business in partnership with Silver Lake.
Going forward, Endeavor will be known as WME Group. Emanuel’s new title under the privately-held company will be Executive Chairman. Shapiro will be President and Managing Partner of WME Group.
Emanuel has previously stated that the stock market didn’t properly value Endeavor’s stock since its IPO in April 2021. The stock is leaving the public market at close to the same share price it debuted at four years ago.
Endeavor’s public share price underperformed the S&P 500 throughout much of its history
Share price growth since Endeavor’s initial public offering, Apr. 28, 2021.
Some analysts cited difficulty understanding Endeavor’s business and its lack of clear performance indicators. In recent years, Endeavor moved many of its assets—including UFC, Professional Bull Riders, IMG, and On Location—into TKO along with WWE, leaving the William Morris Endeavor (WME) talent agency and other businesses with Endeavor.
Endeavor first stated it was considering going private through Silver Lake in late October 2023 and formally announced the action in April 2024. Silver Lake is led by co-CEO Egon Durban, who also serves as a board member for Endeavor, TKO, and many other companies.
The transaction values Endeavor at around $25 billion and is described by the company’s press release as the largest take-private deal ever in the media and entertainment sector. The transaction was completed with additional investments from Abu Dhabi’s sovereign wealth fund Mubadala Investment Company. The Dell family’s DFO Management, LLC is also participating in the investment.
Endeavor going private was part of the plan from early on in TKO’s formation. TKO continues to be traded on the New York Stock Exchange just as it has since September 2023 following the completion of the merger of WWE and UFC.
