Silver Lake’s strategy to privatize Endeavor involves injecting $250 million of seed equity into a novel venture spearheaded by executive chairman Patrick Whitesell.
The new endeavor will encompass a wide array of activities, including “investing in and providing services to companies in the entertainment, media, and sports industries; developing, producing, financing, and exploiting film, television, and digital audiovisual content; talent management;
and consulting with other entertainment companies,” according to an SEC filing released today, which also discloses fresh contract particulars for Endeavor’s top executives.
However, the filing provides minimal information about the new company, which underscores the redefined roles for Whitesell, CEO Ari Emanuel, and COO Mark Shapiro, who will remain at the helm of Endeavor.
Additionally, the document highlights Endeavor’s intention to explore potential asset sales, with exceptions made for TKO Group and WME.
Notably, Emanuel is slated to receive a $25 million “asset sale transaction bonus” upon the sale or disposition of specified assets, although the exact triggers for this bonus remain unclear.
Moreover, he is entitled to a quarterly royalty payment from WME amounting to 2.5% of the agency’s net cash profits.
He stands to receive a $15 million transaction bonus upon Endeavor’s privatization and could potentially earn up to $100 million as a maximum cash bonus following certain qualifying asset sales.
