Endeavor considers sale and Silver Lake wants it

Shares of Endeavor Group Holdings Inc (NYSE:) surged 24% after-hours Wednesday after the company announced it will explore strategic alternatives, including a possible sale.

Immediately following the news from the company, large shareholder Silver Lake said it is considering a proposal to take Endeavor private.

Endeavor said a possible sale of the company would not include the company’s ownership interest in TKO Group Holdings Inc (NYSE:), which controls entertainment brands UFC and WWE.

Endeavor cited the dislocation between its stock market valuation and the intrinsic value of its underlying assets as the reason for the strategic review.

Silver Lake, which currently owns 71% of the voting power of Endeavor, said it is “not interested in selling its shares in Endeavor to a third-party nor in entertaining bids for assets that are a part of Endeavor.”