WWE Parent Company Endeavor Selling Shares, WWE Unaffected
Endeavor CEO Ari Emanuel claims the company is to explore "strategic alternatives."
WWE's parent company, Endeavor, could be going private in a move that will not impact WWE or TKO Group Holdings.
Endeavor CEO Ari Emanuel stated in yesterday's press release that the organisation is exploring "strategic alternatives," but will not consider selling its stake in TKO, which should prevent implications for WWE
Per the release:
“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders... As part of this review of strategic alternatives, the Company will not consider the sale or disposition of the Company’s interest in TKO Group Holdings, Inc."
TKO was created through the UFC and WWE's merger, which closed in September. Endeavor holds a 51% stake in the newco.
Endeavor's parent company, Silver Lake, will not sell shares to a third-party organisation as part of any privatisation process.
Silver Lake said the following in its own release:
“Silver Lake firmly believes in Endeavor’s business and is not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor."
Silver Lake currently owns a 71% stake in Endeavor. Presumably, given the third-party comment, going private would mean Silver Lake purchasing the remaining 29%.