Silver Lake is planning to “get further into business" with Endeavor's Patrick Whitesell following the PE firm's decision to take the sports and entertainment company private, according to Alex Weprin of HOLLYWOOD REPORTER. In Whitesell’s new employment agreement, which was filed with the SEC in conjunction with the take-private, Silver Lake is committing $250M in seed money for “a new media company” to be led by Whitesell. The agreement said he also “will be appointed to the Endeavor board” and “may also continue as chairman of WME” (HOLLYWOOD REPORTER, 4/3).
CHANGE OF TACTICS: In N.Y., Michael de la Merced wrote Silver Lake's acquisition of Endeavor is “meant to usher in a new era for Endeavor, whose ambitious growth story failed to gain traction on Wall Street.” Whitesell and Endeavor co-founder Ari Emanuel sought to turn what had started as a talent agency into a “new kind of media powerhouse: an organization that comprised not only the top talent in sports, entertainment and fashion but the content businesses to spotlight that talent.” Silver Lake invested in Endeavor in 2012, with co-CEO Egon Durban “taking a top advisory role.” Since, a “flurry of acquisitions followed” including PBR and UFC. Endeavor last year acquired WWE to combine with UFC in a publicly traded company called TKO Group, “hoping to draw even more profit from selling rights to live fights.” But some of the bets have not “exactly panned out.” While Endeavor had thought TKO Group “would be a powerful draw for Wall Street investors," shares in the company “remain below their debut price.” The hope now is that by delisting, Endeavor “can continue to make ambitious investments without being second-guessed by public-market shareholders” (N.Y. TIMES, 4/2).
