Endeavor Group Holdings Inc. (NYSE:EDR) experienced a boost in its New York stock value as controlling shareholder Silver Lake Management revealed plans to acquire the minority investors’ stake and explore asset sales within the entertainment company.
Shares of Endeavor witnessed an increase of up to 5.4%, reaching a 4.3% gain at $24.03 as of 10:47 a.m. in New York.
Silver Lake, holding a commanding 71% voting stake in Endeavor, is set to present its bid to the company’s independent directors in the upcoming weeks. These directors will then engage advisers to assess the terms and provide recommendations, as disclosed by sources familiar with the plans who requested anonymity due to the private nature of the discussions.
This move by Silver Lake aligns with its October announcement, responding to Endeavor’s consideration of strategic options amidst dissatisfaction with its stock performance, which has lingered below the $24 per share initial offering price for nearly three years.
Led by Hollywood superagent Ari Emanuel, Endeavor diversified its portfolio through numerous acquisitions but faced challenges in convincing investors of their synergy. The company’s operations encompass the William Morris Endeavor talent agency, a sports-betting platform, and entities managing events like the Professional Bull Riders League and New York Fashion Week.
Endeavor intends to retain its core business, the talent agency representing notable figures such as Dwayne Johnson and Millie Bobby Brown. Additionally, the company holds a 51% stake in TKO Group Holdings Inc. (NYSE:TKO), the parent company of Ultimate Fighting Championship and World Wrestling Entertainment. It is anticipated that TKO will remain publicly traded.
Shares of TKO saw an increase of up to 3%, reaching $78.08.
To facilitate the deal, Silver Lake is expected to bring in partners for financial support, engaging both new and existing ones. Reports suggest ongoing discussions between Silver Lake and Abu Dhabi wealth fund Mubadala Investment Co. regarding a potential investment in the endeavor.
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