Endeavor, the parent company of TKO Group Holdings/WWE is to be taken private and will see all shares acquired by private equity firm Silver Lake.
As part of the deal, Endeavor stockholders will receive $27.50 per share in cash, representing a premium of 55% to the closing price of $17.72. This number was before Silver Lake said in October 2023 that they were working on a proposal to take the company private.
What This Means for TKO
Endeavor has said that it would not consider a sale of its majority interest in TKO Group Holdings, which consists of both WWE and the UFC. TKO is not party to this transaction and will remain a publicly traded company, the companies said on Tuesday.
While TKO is not expected to be directly involved with this move, the company is seeing a benefit from the change. After news of Endeavor’s privatization was announced, stock in the WWE company rose significantly. It had been trading at $86.66 a share before the news broke and rose to $90.78 a share within 90 minutes of the announcement.
TKO Group Holdings
TKO was officially launched in September 2023. It was announced back in April 2023 that Endeavor was to acquire WWE as part of a historic $9.3 billion deal. The merger of WWE and UFC into TKO did not come without casualties as over 100 employees were let go last year in efforts to synchronize the two sports promotions. WWE would host its first wave of talent releases post-TKO launch that same month.