Ari Emanuel baits investors to swim with sharks

Endeavor group

03/04/2024 24:31

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Jennifer Saba
       NEW YORK, April 2 (Reuters Breakingviews) - The CEO of
Hollywood powerhouse Endeavor agreed to a $13 bln buyout billed,
via creative math, as the decade’s biggest. After separating
crown jewel UFC, Endeavor is complex – and cheap. For buyer
Silver Lake, expert at exploiting such aberrations, this deal is
perfect chum.
    Full view will be published shortly.
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    CONTEXT NEWS 
Endeavor said on April 2 that it had agreed to be acquired by
private equity firm Silver Lake in a deal valuing its equity at
$13 billion. Shareholders in the talent and entertainment
company will receive $27.50 per share in cash, representing a
55% premium to the company’s unaffected share price at the
market close on Oct. 25, before it announced a review of
strategic alternatives.
    Silver Lake owns an approximately 37% stake in Endeavor.
    The transaction will be financed through a combination of
new and reinvested equity from Silver Lake and additional
capital from investors including Mubadala Investment.
    The deal does not affect TKO, the publicly traded wrestling
and ultimate fighting company that counts Endeavor as its
controlling shareholder.

 (Editing by Jonathan Guilford and Sharon Lam)
 ((For previous columns by the author, Reuters customers can
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jennifer.saba@thomsonreuters.com; Reuters Messaging:
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