Endeavor Group Holdings, Inc.(formerlyWilliam Morris EndeavorandWME-IMG) is an Americanholding companyfor talent and media agencies with its primary offices inBeverly Hills,California.[2][3]The company was founded in April 2009 after the merger of theWilliam Morris AgencyandEndeavor Talent Agency.Endeavor represents artists in film, television, music, theater, digital media, and publishing.[4]It also represents theNFLandNHL.[5]Endeavor is majority owner ofWorld Wrestling Entertainment(WWE) and theUltimate Fighting Championship(UFC) throughTKO Group.[6][7]In collegiate athletics Endeavor-Learfield IMGrepresentsThe American,A10,Big 12,Conference USA,Horizon League,MAC,MEAC,OVC,SECandWCC.

Endeavor Group Holdings, Inc.
Formerly
  • William Morris Endeavor (2009–2013)
  • WME-IMG (2013–2017)
Company typePublic
NYSE:EDR
IndustryTalent and literary agencies
Predecessors
Founded2009;15 years ago(2009)
inBeverly Hills, California,United States
Headquarters
Beverly Hills, California
,
United States
Key people
RevenueIncreaseUS$5.96 billion(2023)
DecreaseUS$320 million(2023)
IncreaseUS$357 million(2023)
Total assetsIncreaseUS$21.5 billion(2023)
Total equityIncreaseUS$4.78 billion(2023)
Number of employees
c. 10,000(2023)
Subsidiaries
Websiteendeavorco
Footnotes / references
[1]

The group additionally owns a 20% stake in film and television production companyFifth Season(formerly Endeavor Content), with the remaining 80% owned by South Korean entertainment and retail companyCJ ENM.[8][9]Endeavor is headed by CEOAri Emanueland executive chairmanPatrick Whitesell.

History

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Beginnings

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The Endeavor Talent Agency launched in 1995.[10]By 2009, it was one of the fastest-growingHollywoodtalent agencies, withThe New York Timessingling out its reputation for "quick thinking, ferocity and barely bridled ambition".[11]

William Morris Endeavor

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On April 27, 2009,William Morris Agency(WMA) and the Endeavor Talent Agency announced that they were forming William Morris Endeavor, or "WME".[12]Endeavor executivesAri EmanuelandPatrick Whitesellwere widely seen as the architects of the merger and quickly became the Co-CEOs of WME.[13]After the official announcement of the merger, nearly 100 WMA employees and former board members were let go. One of those leaving was Jim Wiatt, who came to WMA in 1999 fromInternational Creative Management,where he was vice-chairman. He had joined WMA as president and co-chief executive officers, and had risen to board chairman.[14]After the merger, WME moved its headquarters into the offices of Endeavor at 9601 Wilshire Boulevard in the heart of Beverly Hills.[15]

In 2011, Emanuel was quoted in aFinancial Timesprofile about the company saying, "We built a culture where people are rewarded for taking risks."[16]Emanuel and Whitesell implemented several leadership strategies to boost the productivity of their agents, most notably, the "Farmhouse" training program.[17]

In September 2022, Richard Weitz and Christian Muirhead were named Co-Chairmen of the agency.[18]

Expansion

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Endeavor grew to include several subsidiary companies and expanded divisions.Fortunenamed co-CEOs Ari Emanuel and Patrick Whitesell to their 2010 "Businessperson of the Year" list, acknowledging their corporate growth strategies.[19]Emanuel had previously been recognized as a 21st-century "super agent" by bothThe Wall Street JournalandThe Guardian,as well as anAdvertising Age"Influencer."[20][21][22]In July 2011, the company and its foundation created Camp Summer Eagle, which provides donations and activities for schoolchildren at Foster Elementary inCompton, California.[23]

Shortly after the merger, WME helped launch the investment group Raine,[24]which aligned the company with properties likeVice MediaandZumba Fitness.In 2010, WME partnered with RED Interactive,[25]a digital advertising agency. Two years later, they formed an alliance with the social media management firm TheAudience,[26]partnering with digital entrepreneurSean Parkerand executing social campaigns for properties like theSeth MacFarlanemotion pictureTedand theCoachella Music Festival.[27]2013 brought a strategic partnership between WME and creative music agency Jingle Punks, which creates, publishes and licenses music. WME is also an investor in the e-commerce platform [OpenSky], which was named one of America's "Most Promising Companies" byForbes.[28]In 2013, Whitesell and Emanuel were profiled inFast Company,highlighting the company's digital growth.[29]

On May 2, 2012, WME andSilver Lake Partners,a technology-focusedprivate equityfirm based inSilicon Valley,signed an agreement for Silver Lake to acquire a 31.25% minority stake in the agency for $250 million.[30]A newexecutive committee,consisting of Co-CEOs Ari Emanuel and Patrick Whitesell and Silver Lake Managing Director Egon Durban, was formed to lead the company's growth strategy and investment activities.[31][32]In July 2013, WME acquired a minority stake in the creative agencyDroga5.The partnership combines the companies’ advertising and entertainment resources.[33]

WME-IMG

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On December 18, 2013, WME and Silver Lake announced the acquisition ofIMGfor $2.4 billion.[34]WME'sAri EmanuelandPatrick Whiteselltook over as co-CEOs. On January 21, 2015, it was announced that WME had acquired Global eSports Management (GEM), an international agency representing variousesportsand professionalvideo gameplayers and personalities.[35]In April 2015, they bought theProfessional Bull Riders(PBR).[36]On September 23, 2015, it was announced that WME-IMG would be partnering withTurner Broadcastingto create a televisedesportsleague, theELeague.[37]

On September 14, 2015, WME-IMG acquired fromDonald TrumptheMiss Universe Organization,which produces theMiss Universe,Miss USAandMiss Teen USAbeauty pageantsand related content. The organization sells television rights to the pageants in other countries. Financial details were not disclosed.[38]SoftbankandFidelity Investmentsin early 2016 invested in WME-IMG. The company formed a joint venture in June 2016 for China withSequoia Capital,TencentandFountainVest Partners.[39]

On July 9, 2016,Zuffa, LLC,the parent company ofUltimate Fighting Championship,was sold to a group led by WME-IMG, its ownerSilver Lake Partners,Kohlberg Kravis Roberts,andMSD Capital,for $4.025 billion, the largest-ever acquisition in the sports industry.[40][41]On August 22, 2016, WME acquired the literary agency Rabineau Wachter Sanford & Gillett (RWSG); its co-founders, Sylvie Rabineau and Jill Holwager Gillett, head a division of WME involved in the coordination of screen adaptations of literature.[42][43]WME/IMG purchased in August 2017 a majority stake in Bloom, a film finance and sales company led by Ken Kao and Alex Walton.[44]

Endeavor

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WME-IMG reorganized in October 2017 with the parent company being renamed from WME-IMG to Endeavor.Ari Emanuelbecame Endeavor CEO andPatrick Whitesellbecame Endeavor executive chairman. The general talent agency retained the WME name as the sports agency retained the IMG name.[45]In October 2017, Endeavor Content was formed from the WME's and IMG's film financing and scripted TV sales units, WME's advisory group for film financiers and content producers and Bloom, which will continue to operate autonomously. Graham Taylor and Chris Rice were appointed as co-presidents and additional hires were Negeen Yazdi as senior vice president of film and Joe Hipps as senior vice president of television.[46]

On November 15, 2017, actorTerry Crewssaid onGood Morning Americathat Adam Venit, head of WME's motion picture department, had squeezed Crews' genitals with his hand at an industry party in February 2016. WME responded they had suspended Venit following an internal investigation,[47]on November 27, 2017, it was announced Venit would return to work after a month's unpaid leave.[48]On December 4, 2017, lawyers acting on behalf of Terry Crews filed suit against WME and Venit stating "It is now time to hold Venit accountable for his sexual predatory behavior and to hold WME accountable for its conduct in condoning, ratifying, and encouraging Venit's sexual predatory behavior".[49]

Endeavor acquired 160over90, a branding and marketing agency inPhiladelphiafor about $200 million in January 2018. The CEO of 160over90, John Campanella, said that Endeavor took less than two months to complete the purchase.[50]

Third Coast Content, a faith and family audiences production and publishing company, was founded in February 2018 by veteran film executive Ben Howard as CEO with Endeavor Content as an investor and as its provider of sales and advisory services.[51]In April 2019,Droga5was acquired byAccenture.[52]

Initial public offering

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On May 24, 2019, Endeavor filed forms for aninitial public offering(IPO) with theSecurities and Exchange Commission(SEC) that would have valued the company at $7.6 billion. The form detailed Endeavor's revenue was $3.61 billion in 2018 with a net income of $100.1 million after adjustments, and potential risks involved of being potentially sued “over alleged long-term neurocognitive impairment arising from concussions”, "collective bargaining to unionize the MMA athletes", and "five relatedclass-action lawsuitsfiled against it alleging that UFC violated Section 2 of theSherman Antitrust Act of 1890by monopolizing the alleged market for elite professional MMA athletes' services ".[53][54]Also included in the filing was the statement that subsidiary WME Dragon Holdings LLC, which bought 49 percent ofadvertising agencyDroga5 in 2013, agreed to sell its interest in Droga5 to Accenture Interactive for $233 million.[55]

On September 26, 2019, a day before it planned to go public, Endeavor Group announced that the IPO had been postponed in order to "evaluate the timing for the proposed offering as market conditions develop."[56]Contributing factors were reported to be the under-performance of the recent IPO forPeloton,[57]and an ongoing lawsuit with several former UFC fighters.[58]

On March 30, 2021, Endeavor Group announced a new planned IPO for later in 2021, withElon MuskandFawn Weavernominated to join its board of directors.[59][60][61]On April 28, 2021, Endeavor Group went public on theNew York Stock Exchange.[62]Endeavor subsequently used some of the proceeds from the IPO to buy out Zuffa's other shareholders at a value of $1.7 billion, making Zuffa a wholly-owned subsidiary of Endeavor.[7]On July 19, 2021,Ursula Burnsjoined the board of directors.[63]On September 27, 2021, Endeavor announced that it would acquireOpenBetfor $1.2 billion in cash and stock.[64]In March 2022, Musk resigned from the board.[65]

Divestment of Endeavor Content

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In 2019, theWriters Guild of America(WGA) filed a lawsuit against the four major Hollywood talent agencies, including WME,Creative Artists Agency(CAA),United Talent Agency(UTA) andICM Partners,over their usage ofpackagingdeals (under which a talent agency offers a production utilizing its represented writers, directors, and/or actors as a "package" to prospective studios),[66]which the WGA asserted to be an illegalconflict of interestunder state and federal law.[67]

As part of agreements which would allow them to resume representing writers, the WGA called for talent agencies to reduce their interest in co-owned production companies, as they considered talent agencies owning their own production companies to be a conflict of interest.[68]In February 2021, Endeavor agreed to a new franchising deal with the WGA, under which it must cease the use of packaging deals, and not hold more than a 20% stake in production companies affiliated with the agency, thus necessitating that it divest at least 80% of Endeavor Content.[69]

On June 8, 2021, Endeavor began to seek a partner for the division in compliance with the agreement, with the whole sales team returning to the company to start the process.[70][71][72]On October 28, 2021, Endeavor started to solicit second-round bids for more than $750 million, with three equity firms and two strategic companies among those in the running.[73]On November 19, 2021,South KoreanconglomerateCJ ENMreached a deal to acquire the stake for $775 million. The acquisition primarily covers the company's scripted business, with Endeavor retaining its non-scripted, documentary, and film consulting businesses. The sale is CJ ENM's largest acquisition to-date.[8]The $785 million purchase was completed in January 2022.[74]In September 2022, the company was renamed Fifth Season;the name stems from Eastern medicine, which recognizes the so-called "fifth season" as a celebratory time of harvest in late summer, thus representing the company's focus on global ideas and content.[9]On October 26, 2022,JKN Global Groupacquired Miss Universe Organization (MUO) from Endeavor for $14 million.[75]

On March 7, 2023, Endeavor acquired unscripted production companyAsylum Entertainment Group.[76]On June 2, 2023, Endeavor acquired literary agency Ross Yoon Agency.[77]

UFC–WWE merger

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In January 2023,professional wrestlingpromotionWWEstated it was exploring a potential sale, with Endeavor being among potential suitors.[78]Its founderVince McMahonhad stepped down as chairman and CEO in mid-2022 amidst amisconduct investigation.[79]Endeavor Streaming had been providing backend services for WWE's streaming platformWWE Networksince 2019.[78]

On April 2,CNBCreported via sources that a deal between WWE and Endeavor was imminent and could be announced the next day.[80]On April 3, Endeavor and WWE officially announced the deal, under which WWE will merge with UFC parent companyZuffato form a new publicly-traded company;[81]the name of the new entity was not announced, but it was stated that it will trade under thesymbol"TKO".Endeavor will hold a 51% stake in" TKO ", with WWE's shareholders having a 49% stake,[6]marking the first time that WWE has not been controlled by theMcMahon family.[80]Vince McMahon will serve as executive chairman of the new entity, Emanuel as CEO, andMark Shapiroas president and chief operating officer. As with Endeavor's ownership of UFC, Emanuel will not take on any creative roles, with current WWE CEONick Khanbeing named president of WWE (in a similar capacity toDana White's role in UFC).[6][82]Emanuel said that the merger would "bring together two leading pureplay sports and entertainment companies" and provide "significant operating synergies", while McMahon stated that "given the incredible work that Ari and Endeavor have done to grow the UFC brand—nearly doubling its revenue over the past seven years—and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders." The deal is expected to be completed on September 12, 2023.[6]WWE and the UFC will continue to run as separate divisions of the newly merged company as per statements made by WWE CEO Nick Khan.[83][84]Hours after the sale, law firm Ademi LLP launched an investigation into the sale, looking for "possible breaches of fiduciary duty and other violations of law".[85]WWE's stock price additionally decreased following the announcement of the sale.[85]On May 16, it was reported that the new entity would operate under the nameTKO Group Holdings.[86]The merger was finalized on September 12, 2023.

Privatization, divestment of assets

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In April 2024, private equity firmSilver Lakeannounced a deal to take Endeavor private, offering $27.50 per share in cash, valuing the company at $13 billion.[87]As part of the buyout, Endeavor began to divest some of its assets; in August 2024, Endeavor announced plans to put its sports betting businessesOpenBetand IMG Arena up for sale,[88]and in October 2024, announced plans to divest IMG, PBR, and On Location Experiences to TKO Group in an all-stock deal valued at $3.25 billion.[89][90]On November 11, 2024, it was announced that OpenBet and IMG Arena would be sold to OB Global Holdings, LLC for $450 million, in amanagement buyoutled by Emanuel.[91]

Holdings

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International
Hospitality/live events/ticket sales
Talent agencies
  • WME – talent agency representing entertainers, athletes, and fashion designers
  • Dixon Talent – talent agency representing late-night and other television (TV) hosts
  • The Wall Group – talent agency representing stylists and designers
  • Global eSports Management – talent agency representing professional video game players and personalities
  • Rabineau Wachter Sanford & Gillett – literary agency
  • Ross Yoon Agency – literary agency
Branding/promotions/advertising
  • 160 over 90, (acquired in January 2018) – a company specializing inPRand advertising for entertainment and experiential events
  • Wonderful Union (acquired in August 2018)[94]– a company that develops and executes promotions, contests, brand sponsorships and advertisements
  • Learfield– a collegiate sports marketing company
Movies
  • Fifth Season(known as Endeavor Content from October 2017 – September 2022) – a company specializing in film financing and scripted TV sales
  • Bloom (acquired a majority stake in August 2017) – a film finance and sales company[46]
Broadcasting/publications
  • Endeavor Streaming– a digital video technology company
  • Frieze– a contemporary art magazine
  • Asylum Entertainment Group(acquired majority stake in March 2023) – an unscripted TV production company
    • 72 Steps Media
    • Audity
    • Big City TV
    • BreakLight Pictures
    • Clovis Entertainment
    • Collins Avenue Entertainment
    • Dare Entertainment
    • Done and Dusted
    • Ladywell Films
    • Moon&Back Media
    • Soho Studios Entertainment
    • Texas Crew Productions
    • The Content Group
  • Third Coast Content (made investment in February 2018)[51]– a film, television and publishing company
Sports/camping

References

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Further reading

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