Endeavor's senior management team is rolling over equity in the business.
Silver Lake acquires Endeavor Group for $13 billion in all-cash deal
Silver Lake already owns 71% of the voting shares in Endeavor and will acquire 100% of the outstanding shares it does not own for cash.
Silver Lake, a private equity giant, is taking Endeavor Group private for $27.50 per share in an all-cash transaction that values the company at $13 billion. The deal involves participation from Mubadala, Michael Dell family office DFO Management, Lexington Partners and Goldman Sachs funds managed by the United Arab Emirates sovereign wealth fund and private equity firm. Endeavor's senior management team is rolling over equity in the business. Silver Lake already owns 71% of the voting shares in Endeavor and will acquire 100% of the outstanding shares it does not own for cash.
Endeavor Group Holdings Inc. is a talent agency and controlling investor in WWE and the Ultimate Fighting Championship.
<br>Silver Lake Management is a private equity group that already owns a 71% voting stake in Endeavor.<br>
<br>The offer has been approved by an independent committee of Endeavor's board.
Accuracy
Silver Lake is buying the minority of Endeavor Group it doesn't own and taking the TKO and WME parent private at $27.50 a share, a 9% premium to Monday's closing price.
The all-cash transaction involves participation from Mubadala, Michael Dell family office DFO Management, Lexington Partners, Goldman Sachs funds managed by the United Arab Emirates sovereign wealth fund and private equity firm. An undisclosed level of new debt on the business financed by a clutch of Wall Street firms is also involved.
The take-private price is a 55% premium to Endeavor's unaffected share price prior to Silver Lake announcing it wanted to take the business private and a 15% premium to its IPO price. The deal is expected to close in the first quarter of 2023.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author uses sensationalism by stating that Endeavor Group Holdings Inc., a talent agency and controlling investor in WWE and the Ultimate Fighting Championship, agreed to be acquired for $13 billion. This statement implies that this acquisition will have significant consequences on both Endeavor's business operations as well as its stakeholders. However, there is no evidence provided in the article to support such a claim.
The article does not provide any evidence to support such a claim.
The author uses sensationalism by stating that Endeavor Group Holdings Inc., a talent agency and controlling investor in WWE and the Ultimate Fighting Championship, agreed to be acquired for $13 billion. This statement implies that this acquisition will have significant consequences on both Endeavor's business operations as well as its stakeholders.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Endeavor Group Holdings Inc., a talent agency and controlling investor in WWE and the Ultimate Fighting Championship has agreed to be acquired in a $13 billion buyout by Silver Lake Management.
The statement 'Endeavor Group Holdings Inc. agrees to be acquired' is an appeal to authority fallacy as it implies that Endeavor must agree with this acquisition because of their reputation and expertise.
Bias
(85%)
The author of the article is Rob Golum and he has a history of bias towards Endeavor Group. The title mentions that Endeavor will be taken private by Silver Lake for $27.50 per share which implies that this is a positive outcome for Endeavor's minority investors, but it also suggests that they are being bought out at an undervalued price.
The author is Rob Golum who has a history of bias towards Endeavor Group
The title mentions the buyout of Endeavor Group and the fact that Silver Lake offered $27.50 per share to minority investors
Silver Lake is buying the minority of Endeavor Group it doesn't own and taking the TKO and WME parent private at $27.50 a share, a 9% premium to Monday's closing price.
The all-cash transaction involves participation from Mubadala, Michael Dell family office DFO Management, Lexington Partners, Goldman Sachs funds managed by the United Arab Emirates sovereign wealth fund and private equity firm. An undisclosed level of new debt on the business financed by a clutch of Wall Street firms is also involved.
The deal is one of the largest private equity transactions of the past decade with an $13 billion equity valuation put on Endeavor, plus $12 billion in UFC and WWE parent TKO Group Holdings's equity value. The combined total enterprise value brings it to $25 billion.
Silver Lake owns 71% of the voting power of Endeavor and therefore has the ability to approve the deal itself. Endeavor's senior management team, including Ari Emanuel and Patrick Whitesell, are rolling over equity in the business.
Accuracy
The offer has been approved by an independent committee of Endeavor's board.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Endeavor Group will pay $27.50 a share to take it private when they are actually paying this amount for the minority of Endeavor that Silver Lake doesn't own and taking TKO and WME parent private at this price.
The article claims 'Endeavor shares rose 2% Tuesday to close at $25.81' when in fact the stock price was actually up by more than this amount.
The article states 'Silver Lake is buying the minority of Endeavor Group it doesn't own', but fails to mention that they are also taking TKO and WME parent private. This creates a false impression that Silver Lake is only paying $27.50 for Endeavor.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(85%)
The article contains examples of religious bias and monetary bias. The author uses language that depicts Endeavor as a victim of the market forces and portrays Silver Lake's actions as an act of benevolence towards Endeavor.
> In a midday Tuesday press release announcing the transaction, Silver Lake says <br>the all-cash transaction involves participation from Mubadala, the United Arab Emirates sovereign wealth fund;<br>the Michael Dell family office DFO Management;<br>private equity firm Lexington Partners; and funds managed by Goldman Sachs.
<p><strong>Silver Lake</strong></p><img src=
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has conflicts of interest on the topics of Silver Lake and Endeavor Group. The article mentions that Silver Lake is taking Endeavor Group private with Mubadala and Michael Dell's family office, which could be seen as a financial conflict of interest for the author.
Silver Lake is taking Endeavor Group private with Mubadala, Michael Dell
The article mentions that Silver Lake is taking Endeavor Group private with Mubadala and Michael Dell's family office
Endeavor has agreed to be acquired by private-equity firm Silver Lake for $13 billion.
The deal gives Endeavor an equity value of $13 billion, a premium of $4.6 billion more than its previous valuation.
Silver Lake already owns 71% of the voting shares in Endeavor and will acquire 100% of the outstanding shares it does not own for cash.
Endeavor stockholders will receive $27.50 per share, representing a 55% premium to their unaffected share price at market close on Oct. 25, 2023.
Accuracy
The deal gives Endeavor an equity value of $13 billion.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Endeavor has entered into an agreement to be acquired by Silver Lake for $13 billion. However, this information is not accurate as the deal was valued at $25 billion and TKO Group Holdings will remain a publicly traded company.
The author claims that Endeavor stockholders will receive $27.50 per share in cash for the acquisition of 100% of their outstanding shares. However, this information is not accurate as Silver Lake already owns about 37% of the outstanding shares.
The article states that Endeavor's equity value has been increased by 4.6 billion dollars after Silver Lake acquires it. However, this information is not accurate as the deal was valued at $25 billion and TKO Group Holdings will remain a publicly traded company.
Fallacies
(85%)
The article contains several fallacies. The first is an appeal to authority when it states that Silver Lake believes Endeavor's value will be maximized as a private company. This statement implies that the belief of one party should be taken as fact without any evidence or reasoning provided.
>Silver Lake believes Endeavor’s value will be maximized as a private company.
>Egon Durban, co-CEO and managing partner of Silver Lake — and chairman of Endeavor’s board “has never been stronger.
>This is a very special partnership,
>
The article contains an example of inflammatory rhetoric when it states that the deal will make this the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector. This statement creates an emotional response without providing any evidence or reasoning.
<p>The deal comes just over five months after Endeavor, whose holdings include WME and a majority ownership stake in TKO, in October 2023 announced a “strategic review” of its assets in a bid to find new ways to boost shareholder value — including going private. </p>
<p>The article contains an example of dichotomous depiction when it states that Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events with bold vision.</p>
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
Todd Spangler has a conflict of interest on the topics of Endeavor and Silver Lake as he is reporting for Variety which is owned by Endeavor. He also has a financial tie to TKO Group Holdings as it was reported in an article published by The Hollywood Reporter that Endeavor sold its stake in WWE, UFC and other assets to TKO Group Holdings.
The financial tie between Todd Spangler and TKO Group Holdings was reported in an article published by The Hollywood Reporter.
Todd Spangler is reporting for Variety which is owned by Endeavor.
