Silver Lake takeover could break up Endeavor
Ari Emanuel is likely to see his business empire shrink should Endeavor Group be taken private by Silver Lake Partners, Bloomberg reports.
Why it matters: A successful takeover by SLP could mean open season for Hollywood agency M&A if Endeavor assets like IMG are placed on the auction block.
Driving the news: SLP, which has been weighing a take-private offer since last fall, is expected to deliver its bid to Endeavor's board in the next few weeks, per Bloomberg.
- As part of the plan, Bloomberg reports, SLP would move to sell off parts of Endeavor once the deal has closed.
- These parts include marketing and fashion firm IMG, a sports-betting platform OpenBet, the Professional Bull Riders league and New York Fashion Week. Endeavor also holds a 51% stake in the newly formed TKO Group, which holds UFC and WWE.
- Talent agency WME is not expected to be sold, Bloomberg added. The company has previously said its TKO stake is not for sale, either.
Of note: Silver Lake is Endeavor's largest shareholder, owning 71% of the company. Its co-CEO Egon Durban and managing director Stephen Evans sit on Endeavor's board.
Catch up quick: Endeavor said in late October it would explore strategic alternatives, the result of budding frustration from Emanuel over their languishing stock price.
- Less than two hours after that announcement, Silver Lake said it was weighing an offer.
- Last spring, Endeavor offloaded IMG Academy to EQT for $1.25 billion in cash.