Saudi fund eyes stake in Miss Universe owner

london — Saudi Arabia’s sovereign wealth fund is in talks to buy a stake in Endeavor, the holding company for Hollywood talent agency WME, people familiar with the matter said.

The Public Investment Fund (PIF) is in preliminary discussions to invest more than $500 million, which will help the talent agency for Ben Affleck and Matt Damon expand its operations, said the people. The stake could range between five per cent and 10 per cent, though the final size and valuation are still being negotiated, they said.

Endeavor was valued at $6.3 billion including debt when it raised money in August 2017, a source said at the time, while its equity was valued at $5 billion. Its existing investors include Silver Lake, SoftBank Group Corp, Singapore’s sovereign wealth fund and Canada Pension Plan Investment Board.

An investment would give Endeavor money to fund its evergrowing web of entertainment, sports and fashion businesses. CEO Ari Emanuel and chairman Patrick Whitesell have pushed Endeavor far beyond the roots of the talent agency for which the company is named.

Endeavor runs WME, which represents movie stars, directors, TV producers and musicians. It also owns Professional Bull Riders, the Miss Universe organisation and IMG, a sports and fashion company. Endeavor completed its biggest deal to date in 2016 when it acquired Ultimate Fighting Championship, the mixed martial arts company.

In December, Saudi Arabia ended a ban on public cinemas imposed in the 1980s. The first multiplexes are expected to open in March 2018, the Ministry of Culture and Information said. The aim is to reach 2,000 screens in more than 300 cinemas by 2030, with the industry expected to contribute about $24 billion to the economy and add more than 30,000 permanent jobs, it said.

The PIF separately is also investing in an entertainment city on the edge of Riyadh. — Bloomberg