Endeavor Group, the parent company of WME talent agency and a major stakeholder in TKO combat-sports business, has announced that it will be conducting a "strategic review" of its assets in order to explore opportunities to enhance shareholder value. One of the potential avenues being considered is the possibility of going private.

Silver Lake, a notable private-equity giant, revealed on Wednesday that it is actively working on a proposal to take Endeavor private. The company firmly believes in the robustness of Endeavor's business and has expressed no interest in divesting its shares or considering bids from third-party entities for Endeavor's assets. Silver Lake currently holds approximately 71% of the voting share in Endeavor and has two senior executives serving on its board of directors.

Ariel Emanuel, CEO of Endeavor, stated in a prepared statement, "Given the continued dislocation between Endeavor's public market value and the inherent value of our underlying assets, we believe conducting a thorough evaluation of strategic alternatives is a prudent approach to ensure maximum value for our shareholders."

Endeavor's decision to undergo a strategic review comes shortly after French billionaire, Francois-Henry Pinault, agreed to acquire a majority stake in rival agency CAA for a reported sum of up to $7 billion. Meanwhile, Endeavor's stock has been struggling, with shares recently hovering just above its 52-week low. However, the announcement of the company's strategic review has provided a boost, causing shares to rise during after-hours trading.

The company emphasized that it has no intention of selling its interest in TKO Group Holdings, a newly-formed entity that encompasses wrestling giant WWE and the highly prominent UFC mixed martial arts league.

Endeavor's strategic review marks a significant move as the company seeks to unlock its full potential and maximize shareholder value. With Silver Lake actively pursuing a proposal to take Endeavor private, the company's future direction could potentially see a major transformation if the deal goes through. Investors will be closely watching the outcomes of the strategic review and the proposed takeover bid, as they could shape the future trajectory of the prominent entertainment and talent agency conglomerate.