UFC majority shareholders at Endeavor go private in $25 billion deal; Ari Emanuel cashes $174 million payout

Endeavor — the talent agency and majority shareholders in TKO Group Holdings — has closed a deal to go private again in a deal headed up by Silver Like Financial.

The acquisition was announced several months ago but now the deal is done with the company taking on a new public name as WME Group and retiring the Endeavor brand. WME Group remains the controlling shareholder in TKO, which is the parent company to UFC and WWE.

Silver Lake stated in a press release that the company “believes that when consolidating all of TKO’s value into Endeavor, the combined total enterprise value of $25 billion.”

Ari Emanuel, who founded Endeavor back in 1995, is taking on a new role as executive chairman over WME Group after previously serving as company CEO, but he’ll remain the CEO over TKO. As part of the deal, Emanuel scored a $173.8 million cash payout and he rolls over ownership interests with a total value of $290.27 million into the new privately held company, per an SEC filing on Monday.

Mark Shapiro, who was previously the president and chief operating office at Endeavor, now becomes the president and managing partner at WME Group. He is still the president and COO at TKO Group Holdings as well.

Patrick Whitesell, who co-founded Endeavor alongside Emanuel, is actually leaving the new WME Group to launch a new Silver Lake backed venture that plans to “invest in and scale properties and IP across sports, media, and entertainment.” Whitesell’s exit was always expected but part of his strategy was to start a new venture backed by a $250 million investment from Silver Lake.

Part of the reason for the split is that Whitesell is expected to leave with WME’s NFL talent representation business but operate as a separately held company because Silver Lake co-CEO and managing partner Egon Durban bought a small stake in the Las Vegas Raiders. Under NFL rules, an owner cannot also operate a business that represents players.

The new WME group maintains the WME talent agency, the marketing firm 160over90, IMG licensing and the unscripted studio Pantheon Media Group.

“This remarkable moment—and the even more exciting future it launches—is thanks first and foremost to Ari Emanuel and Patrick Whitesell, and to the relentless and ambitious strategic vision they have shared for more than twenty years to build Endeavor into a global powerhouse across talent, brands, and IP spanning entertainment, media, and sports,” Durban said in a press release. “Silver Lake is proud and honored to be their partners since 2012 as they have continued to build the company. Over this period, revenue has grown by twentyfold. Silver Lake has previously invested on six separate occasions to support Endeavor and now, with this latest investment, it is the single largest position in our global portfolio.

“Silver Lake has never sold a share, instead increasing our stake as we remain highly excited about the long-term growth outlook for the company. Mark Shapiro is an impressive, hard charging, creative, and determined leader who is driving and orchestrating massive value creation. We look forward to continuing our work and partnership with him and the rest of the management team—including Richard Weitz and Christian Muirhead at WME Group and Dana White, Andrew Schleimer, and the collective TKO leadership—all of whom are industry best. We are grateful for all of the clients and partners these businesses are laser focused on serving, as well as for the anchor investors who have joined us in this transaction.”

While Endeavor is going private, TKO is still a publicly traded company with no plans to change that in the near future. TKO is comprised of the UFC and WWE as well as some smaller properties like Professional Bull Riders as well as the marketing agency IMG and On Location, the premium experience and hospitality company.

“I am grateful to Egon and the team at Silver Lake for the trust they have placed in me as a founder and entrepreneur,” Emanuel said. “Together, we have created and enhanced a foundation unlike any other to accelerate value creation for clients and partners across WME Group and TKO, which I am excited to continue to build and grow.”