• Loading stock data...
Sunday, April 14, 2024
  • -
  • -
  • -
  • -

Endeavor’s Move to Go Private Will Form a New Media Company

  • Silver Lake is set to provide $250 million in seed equity in the separate venture.
  • Senior company leaders are receiving a series of lucrative compensation awards.

Endeavor’s move to become a private company is additionally creating a new media entity, in part targeting the sports industry, that will be run by one of the company’s key leaders.

Patrick Whitesell, Endeavor executive chairman, will be starting and leading a separate company that will receive $250 million in seed equity from Silver Lake, the private equity giant that is leading the Endeavor privatization. The business, according to a filing made Wednesday with the U.S. Securities and Exchange Commission, is “(a) investing in and providing services to companies in the entertainment, media and sports industries, (b) developing, producing, financing and exploiting film, television and digital audio visual content, (c) talent management and (d) consulting with other entertainment companies.”

Whitesell will retain his role with Endeavor, and particularly the WME agency it controls, while also leading this new venture. But the filing provides a further window into the lengths that Endeavor and its key leaders are going to create additional value in and around the company, as well as additional terms of the Silver Lake deal. A lack of full recognition from investors in what Endeavor has built in recent years helped prompt the move to go private. 

Among the other elements contained in the latest Endeavor SEC filing:

  • CEO Ari Emanuel is set to receive a $25 million “asset sale bonus” as part of the deal and also will get quarterly royalty payments equal to 2.5% of quarterly net cash profits for WME. He will get a company plane, as well as reimbursement for costs related to usage of it. Additionally, Emanuel will receive a series of equity awards in the newly private Endeavor. 
  • Endeavor president and COO Mark Shapiro will see his base salary more than double from $3 million to $7 million, and he is also now eligible for a guaranteed annual bonus of $15 million for every year he is with the newly private company, as well as a bonus of up to $100 million upon completion of certain qualifying asset sales.
  • If Endeavor enters into a “superior proposal” than the Silver Lake deal, it will pay a breakup fee of $288.5 million. If Silver Lake fails to complete the agreement, it will pay a $705 million termination fee.

Endeavor is the majority owner of UFC and WWE parent TKO Group Holdings, and is also the corporate parent of assets such as IMG, On Location, and Professional Bull Riders.

Copy Link
Link Copied
Link Copied

What to Read

Fever Keeping Plans Quiet (for Now), Unlike Spurs and Blackhawks

The Fever’s business approach differs from recent rookie phenoms in other leagues.

MLS Finally Gets Its Own Piece of the Big Apple

New York will finally gain a soccer-specific stadium with plans approved for a facility in Queens.

Following a Long List of Blows, MLB Walks for a Change

Officials say the Dodgers’ superstar is ‘considered a victim in this case.’

Hello, Goodbye: Coyotes’ Future in Flux As Relocation Rumors Ramp Up

The league reportedly has developed a contingency plan to move the team to Salt Lake City.

Featured Today

Women’s Basketball Finally Has a TV Deal to Match the Excitement. Now What?

A lucrative new media-rights contract could rectify problems of the past, but the future of March Madness media rights is anyone’s guess.
Mar 16, 2024; Washington, D.C., USA; North Carolina State Wolfpack forward DJ Burns Jr. (30) cuts the net after defeating the North Carolina Tar Heels for the ACC Conference Championship at Capital One Arena.
April 6, 2024

How Two College Seniors Helped DJ Burns Cash In on a Final Four Run

Two college seniors are facilitating deals for NC State’s big man.
Mar 31, 2024; Portland, OR, USA; NCAA officials measure the three point line while coaches from the Texas Longhorns and NC State Wolfpack watch with referees in the finals of the Portland Regional of the NCAA Tournament at the Moda Center center.
April 1, 2024

NCAA Has No One to Blame for Latest Women’s March Madness Transgressions

NCAA is still making avoidable mistakes three years after a complete overhaul.
Nov 16, 2015; Bloomington, IN, USA; General view of the championship banners at Assembly Hall prior to the game between Austin Peay and Indiana.
March 31, 2024

How to Make It in Basketball: Become a Manager at Indiana

Inside the Hoosiers’ unglamorous, profoundly rewarding incubator for basketball’s biggest names.


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Multiple - USA Careers
Multiple - USA Careers
Dunham's Sports
Multiple - USA Careers

Calling the Masters Can Make You—or Break You

Legends are made at Augusta—as long as they do things Augusta’s way.
April 10, 2024

The Masters’ Broadcasters Take What They Can Get

During the first two rounds, ESPN’s coverage begins at 3 p.m. ET.
April 12, 2024

Lawsuit Alleges ‘Fraudulent Coup’ at Former ‘Sports Illustrated’ Publisher

A messy situation just keeps getting messier.

Rapid Returns: How Technology Is Getting You Back to Your Seat

How Oracle’s POS technology is helping fans get back to their seats faster.
April 8, 2024

Sports Media Game-Changer? Skydance Eyes CBS Parent in $5B Deal

The two sides have agreed to a month of exclusive talks.
April 8, 2024

South Carolina’s Title Win Smashes Ratings Records in Caitlin Clark’s Finale

The NCAA title game became the most-watched women’s college basketball game.
April 8, 2024

WNBA Commish Wants New Media-Rights Deal to Double Old One

The media-rights deal expires in 2025 to coincide with the Caitlin Clark effect.
April 6, 2024

Iowa-UConn Draws 14.2 Million Viewers, Racks Up Records

The Final Four matchup was the most-watched women’s college basketball game in history. And we’re not done yet.