Endeavor Group Holdings (NYSE: EDR) stock rose over 1% in the early trading hours on Wednesday. This increase comes after the company inked a definitive acquisition agreement with Silver Lake.
A private equity firm Silver Lake recently announced an agreement to acquire talent and entertainment agency Endeavor (EDR) for $13 billion, taking the company private.
Silver Lake, the largest investor in Endeavor, will pay $27.50 per share in cash to Endeavor stockholders, representing a 55% premium to the closing price of $17.72 before Silver Lake announced its intention to take the company private in October.
Silver Lake, with a 31% stake in Endeavor as of December 31, will finance the transaction through a combination of new and reinvested equity. The additional capital will come from investors, including Mubadala Investment Company and DFO Management.
The deal follows Silver Lake’s announcement late last year that it was working to take Endeavor private after Endeavor initiated a review to explore alternatives for better valuation.
Endeavor had previously stated that it would not consider selling its majority interest in TKO Group Holdings, a separately traded company whose assets include WWE and Ultimate Fighting Championship (UFC). TKO will remain publicly traded and is not part of the transaction with Silver Lake.
The deal received the green light from the executive committee of Endeavor and a special review committee, leading to the signing of the definitive agreement. Both parties expect the deal to close by the end of the first quarter of 2025.
Endeavor (NYSE: EDR) Stock Performance
EDR stock increased 1.26% to $26.14 in the early trading hours of Wednesday. The traders have exchanged hands with 12,147,311 (12.14 million) shares compared to the average daily trading volume of 3.60 million.
