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Silver Lake Technology Management LLC filed suit in Delaware's Court of Chancery on Monday to stop Carl Icahn and a group of hedge funds from seeking appraisal of Endeavor stock, a move that threatens the private equity firm's 2025 acquisition of the entertainment agency.
The case hinges on whether investors who bought shares after the deal announcement can legally demand a judicial valuation, a question that could force Silver Lake to pay out hundreds of millions of dollars or more.
The lawsuit targets a specific legal tactic used by hedge funds employing appraisal arbitrage. Silver Lake announced in 2024 that it would buy Endeavor for $13 billion, or $27.50 per share.
Following the announcement, TKO Group Holdings stock, in which Endeavor held a majority stake, rose sharply.
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