In a significant development, Silver Lake, the largest shareholder of Endeavor, has announced its plans to propose taking the media and tech company private. The move comes shortly after Endeavor CEO Ari Emanuel revealed that the company is evaluating "strategic alternatives," according to a report by Deadline.

As Endeavor's main investor, Silver Lake is dedicated to delivering value for all shareholders. In a public statement, the private equity firm stated, "Silver Lake is currently working toward making a proposal to take Endeavor private. Silver Lake firmly believes in Endeavor's business and is not interested in selling its shares to a third party or entertaining bids for its assets."

With 71% of the voting power, Silver Lake holds a substantial stake in Endeavor. The firm's co-CEO, Egon Durban, and Managing Director, Stephen Evans, serve as members of the Executive Committee of Endeavor's Board of Directors. Since their initial investment in 2012, Silver Lake has made significant contributions to Endeavor's growth.

Endeavor had earlier disclosed that it is undergoing a formal review to assess strategic alternatives. While the company did not provide specific details regarding these alternatives, it did emphasize that the review would not encompass the sale or disposition of TKO Group, which owns WWE and UFC and is majority-owned (51%) by Endeavor.

CEO Ari Emanuel explained, "Given the gap between Endeavor's public market value and the intrinsic value of its assets, we believe evaluating strategic alternatives is a prudent approach to maximize shareholder value."

Endeavor's recent acquisition of WWE and its integration with UFC through the creation of the publicly traded TKO aimed to enhance the company's share price. However, the results have been underwhelming. Endeavor's stock closed at $17.72, just slightly above its 52-week low. News of the strategic review did spur the stock to surge by a significant 26% in after-market trading.

Shares of TKO, which launched on the NYSE on September 12, started strong at over $100. As of today, they closed at $78.64, experiencing a 2% rise after market hours. Both WWE and UFC are currently negotiating their respective rights deals, which have been slower to finalize than anticipated. Wall Street reacted with indifference to WWE's recent announcement of a five-year domestic media rights deal with NBCUniversal, valued at around $200 million.

Endeavor's stock struggles can be attributed, in part, to what analysts term a "conglomerate discount." Such discounts are applied to companies that own a collection of assets and businesses, creating complex investment opportunities that require time for investors to fully comprehend. Endeavor operates through four divisions: Owned Sports Properties, Events, Experiences & Rights, Representation, and Sports Data & Technology.

It should be noted that Endeavor has not established a specific timeframe for completing the strategic alternatives review process. The company has emphasized that it will disclose relevant information when deemed necessary or advisable.

Overall, Silver Lake's proposal to take Endeavor private adds a new twist to the ongoing evaluation of strategic alternatives and could potentially reshape the company's future.