Saudis eye stake in talent agency owner

PIF is in preliminary discussions to invest more than $500m in owner of Hollywood talent agency WME

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, known as PIF, is in preliminary discussions to invest more than $500 million (Dh1.83 billion), which will help the talent agency for Ben Affleck and Matt Damon expand its operations, said the people, who asked not to be identified because the information is private.

The stake could range between 5 per cent and 10 per cent, though the final size and valuation are still being negotiated, they said.

Discussions are ongoing, and no final decisions have been made, the people said.

Endeavor was valued at $6.3 billion including debt when it raised money in August 2017, a person with knowledge of the matter 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.

Representatives for PIF, Endeavor and Silver Lake declined to comment.

An investment would give Endeavor money to fund its ever-growing web of entertainment, sports and fashion businesses. Chief Executive Officer Ari Emanuel and Chairman Patrick Whitesell have pushed Endeavor far beyond the roots of the talent agency for which the company is named.

Saudi cinemas

Endeavor runs WME, which represents film 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, marking yet another step in the kingdom’s efforts to diversify its economy away from oil and bolster its entertainment industry. The first multiplexes are expected to open in March 2018, the Ministry of Culture and Information said in a statement last month.