Due to concerns over its stock price, the parent of TKO Group Holdings, Endeavor, is looking to take the company private. Shares are down more than 36% since the company’s IPO in 2021. TKO Group Holdings will not be a part of the privatization and will remain publicly traded.
Private equity company Silver Lake is “working toward making a proposal to take Endeavor private.” Deadline.com reports that the deal is valued at $13 million. Shareholders will receive $27.50 in cash for each share.
As one might recall Endeavor was to go public prior to Covid, it was pulled prior to going public due to an unfavorable market at the time. It did go public in the spring of 2021 but it lacked the rocket ship share prices that some had expected.
Under the proposed deal, Silver Lake will acquire 100% of the outstanding shares it does not currently own.
The privatization of the company reflects the fact that Endeavor never caught on with investors on Wall Street. Deadline noted that explaining the multiple properties owned by Endeavor and why deal with the inherent ups and downs of the sports and entertainment entities made sense. Despite the merger of TKO last spring and its monster earnings, Endeavor has not experienced share increases as expected.
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