Endeavor’s Patrick Whitesell to Launch New Media Company With $250 Million Silver Lake Investment

Endeavor executive chairman Patrick Whitesell is launching a new media company backed by Silver Lake as part of the private equity firm’s deal to acquire the sports and entertainment giant at an equity value of $13 billion and take it private.

According to a filing with the U.S. Securities and Exchange Commission, Silver Lake will invest $250 million of seed equity into the company, which will be used for “(a) investing in and providing services to companies in the entertainment, media and sports industries; (b) developing, producing, financing and exploiting film, television and digital audio visual content; (c) talent management; and (d) consulting with other entertainment companies.”

Whitesell will be appointed as a member of Endeavor’s board of directors and, if requested by the company or Silver Lake affiliate, will be appointed as “chairman of the governing body of William Morris Endeavor Entertainment.”

If appointed WME chairman upon closing of the transaction, Whitsell will be entitled to receive quarterly royalty payments from WME equal to 2.5% of the quarterly net cash profits of the agency representation business of WME. In the event Whitesell declines or is not appointed as chairman of WME, he will receive a lump sum payment of $60 million.

More to come…