Endeavor Group Holdings said it agreed to be acquired by private-equity firm Silver Lake for $27.50 a share, a deal that values Endeavor at $13 billion.

The deal is being described as a partnership between investors including Silver Lake and the Endeavor management team, including CEO Ari Emanuel, executive chairman Patrick Whitesell and president and chief operating officer Mark Shapiro.

Silver Lake has been an investor in Endeavor since 2012.

Endeavor’s stock price rose 2% to $25.92 in afternoon trading Tuesday.

“Our unwavering belief in Ari and Patrick, together with Mark and other talented leaders at Endeavor, has never been stronger,“ said Egon Durban, co-CEO and managing partner of Silver Lake and chair of Endeavor. “This is a very special partnership. Together, we have built and grown Endeavor from $350 million in annual revenue when we first invested in 2012 to nearly $6 billion in consolidated revenue today. 

“Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports and live events with bold vision,“ Durban said. “Consistent with our mission and underscored by this commitment being among the largest in Silver Lake’s history, we are all in on working with the Endeavor team and our trusted anchor investors to create value by accelerating growth at scale.”

Endeavor announced in October that it began a formal review of strategic alternatives. At the time, Silver Lake said it was working on a proposal to take Endeavor private.

Silver Lake said that if the value of TKO Group, controlled by Endeavor, were included, the value of the company would be $25 billion. TKO, which owns WWE and UFC, is not part of the transaction and is expected to remain a separate publicly traded company that benefits from its connections to Endeavor, Silver Lake said.

"Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban have been central to our evolution into the global sports and entertainment leader we are today,” Emanuel said. “We believe this transaction will maximize value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.”

Endeavor Group Holdings is making WWE and UFC into a tag team, with a deal creating a new public company that will operate both combat sports franchises and will be 51% owned by Endeavor and 49% owned by WWE shareholders.

The deal values the new company at $12.1 billion. The combination of WWE and UFC had revenue of $2.4 billion in 2022.

The new company will be led by Ari Emanuel as CEO. Emanuel will also continue in his role as CEO of Endeavor. WWE executive chairman Vince McMahon will be executive chairman of the board and Mark Shapiro will be president and chief operating officer of both Endeavor and the new company. Dana White will continue in his role as president of UFC and Nick Khan will serve as president of WWE. The board of directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.

“This is a rare opportunity to create a global live sports and entertainment pure-play built for where the industry is headed,” Emanuel said. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

WWE had announced plans to explore strategic alternatives in January, signaling that McMahon, who had grown the company, was ready to sell. 

The deal was timed as WWE media rights come up for renewal. It has deals with NBCUniversal and Fox for its weekly shows Monday Night Raw on USA Network and Friday Night SmackDown on Fox, while live events currently appear on NBCU’s Peacock streaming service. UFC’s events are carried on The Walt Disney Co.’s ESPN and ESPN Plus.

McMahon retired as chairman and CEO of WWE last July amid a probe of payments he made to a WWE employee with whom he allegedly had an affair. McMahon returned to the company as executive chairman and repaid the company $17.4 million to cover the payments and the investigation into the misconduct.

“Given the incredible work that Ari and Endeavor have done to grow the UFC brand — nearly doubling its revenue over the past seven years — and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” McMahon said. 

Under terms of the deal, Endeavor will contribute its UFC unit to the new company. The transaction values WWE at about $106 a share. UFC and WWE will contribute cash to the new company, which will hold $150 million. Shareholders of the new company, excluding Endeavor, are expected to receive a post-closing dividend.

By combining, the companies expect to be able to create cost synergies of $50 million to $100 million. Endeavor also said it expects significant growth across revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality. 

The transaction has been unanimously approved by the executive committee of Endeavor’s board of directors and by the board of directors of WWE. 

The deal is expected to close in the second half of 2023, the companies said. ▪️

Michele Thornton Ghee, the former senior VP at ViacomCBS's BET Her, has been named CEO of Bridgeman Sports & Media-owned Ebony and Jet magazines. Ghee, who was a MCN Wonder Woman in 2019, will be charged with creating the vision and activating the strategy for these iconic brands as she steers them into the 21st century, the company said in a release. The brand value proposition will be embedded in Information|Inspiration|Inclusion, it said.

"Everything we say will come through the lens of Black journalists," Ghee said in the release. "We will ensure there is a safe space for Black journalism to thrive. I'm a little Black girl from Oakland, CA. I'm not apologizing for any of it. Our voices matter. We are History in the making!"

Also Read: Strategic Goal Setter (Wonder Woman profile)

Ghee's career in media marketing began in 2000 when she moved to New York City and obtained a position at The Weather Channel.  She progressed to positions at A&E, CNN and BET. She left BET in 2019 to join Endeavor Global Marketing. She also has developed her own self brand, Stratechic, which she has expounded on in books and in successful speaking roles.

Owner Eden Bridgeman said in the release: "We are honored to have Michele Ghee at the helm to steward these iconic brands. With a proven track record over a storied career thus far and a passion to bring her life experiences to Ebony and Jet we are excited at the future she will create. The next chapter of Ebony and Jet's history will be told for generations to come and having her continue to authentically document, innovate, and uplift the culture will be keys to our success."  

About one month after announcing the deal, Endeavor has closed its purchase of online, multiscreen technology and services company NeuLion.

Pursuant to the terms of the transaction, which was valued at about $250 million when it was announced in March, each share of NeuLion common stock that was issued and outstanding on May 7, 2018 was automatically converted into the right to receive 84 cents in cash, without interest and subject to deduction for any required withholding tax.

In connection with the completion of the transaction, NeuLion common stock will be delisted from the Toronto Stock Exchange, as NeuLion becomes a privately held subsidiary of Endeavor. Endeavor’s companies include WME, IMG and UFC, and a business that spans talent representation, brand marketing, sponsorship and licensing, media sales and distribution and events.

Endeavor has struck a deal to acquire online, multiscreen technology and services company NeuLion for about $250 million in cash.

Under the deal, announced Monday, Endeavor will acquire outstanding common shares of NeuLion for 84 cents each.

The deal is expected to close in Q2 2018, and have NeuLion become a privately held subsidiary of Endeavor, which was known as WME|IMG prior to a name change announced in October 2017.

Endeavor’s companies include WME, IMG and UFC, and a business that spans talent representation, brand marketing, sponsorship and licensing, media sales and distribution and events.

NeuLion’s current crop of streaming customers includes the UFC, NBA, Univision, National Geographic, Sky Sports, Poker Central, Eleven Sports, EFL, ITV, Euroleague Basketball, World Surf League, ITV, RugbyPass.com, Big Ten Network and the NFL, among others.

“We’re excited by the value delivered to our stockholders through this transaction, and we’re looking forward to the dynamic opportunities that being part of the Endeavor family will provide for both our current and new clients,” Roy Reichbach, president and CEO of NeuLion, said in a statement.

“Through our content portfolio, client base, and broader network of rights holders we’ve encountered many different platforms for distributing and monetizing content,” added Ariel Emanuel, Endeavor’s CEO. “NeuLion provides an ideal combination of technology and client services, and we’re excited for the value this brings to our existing partners and the foundation it provides for our future digital growth.”

Paul Weiss, Rifkind, Wharton & Garrison LLP is serving as Endeavor’s legal counsel in the deal, while The Raine Group acted as exclusive financial advisor to Endeavor. NeuLion’s legal advisor is Loeb & Loeb LLP, and its financial advisor is Needham & Company.