Endeavor, the parent company of the renowned bookmaker OpenBet, has entered into a definitive agreement to be taken private by long-term investor Silver Lake for $13 billion. This transaction will see Silver Lake acquiring 100% of Endeavor's outstanding shares, marking a significant development in the company's ownership structure.
The agreement values Endeavor at $8.2 billion, with each share being offered at $27.50, reflecting a total equity value of $13 billion, inclusive of the company's debt. Notably, this move comes after Endeavor announced in October 2023 its exploration of strategic alternatives, which included the possibility of a complete sale of the company. Prior to this agreement, Silver Lake already held a substantial 71% ownership stake in Endeavor.
Endeavor's decision to go private follows its listing on the New York Stock Exchange in April 2023. Despite the company's strong revenue growth, analysts noted a disparity between its market valuation and the perceived value of its assets. Ariel Emanuel, the then CEO of Endeavor, underscored this discrepancy, highlighting the opportunity to unlock greater value by operating outside the public markets.
The acquisition by Silver Lake represents a strategic move to leverage Endeavor's assets and capitalize on its growth potential in the dynamic sports entertainment industry. This transaction underscores Silver Lake's confidence in Endeavor's future prospects and its commitment to driving value for shareholders.
