IMG

Endeavor bought IMG to own an asset instead of signing more clients. Ari Emanuel wondered why Mike Ovitz, at the top of his game, never bought an advertising agency to add another leg to his stool. He, Patrick Whitesell, Mark Shapiro and Egon Durban concluded they should own an asset given where the world was going.

Endeavor added IMG and then the UFC, giving it events, sports, production and licensing on top of representation. Ari's summary: "we want to own an asset".

David Senra▶ 57:41

Ari picked a private equity partner who learned the business and shared the vision. Egon Durban asked for three weeks and Endeavor's numbers, then returned with an offer Ari could have signed as is. Ari credits him with the idea of adding events, production and licensing to the representation business.

The same partnership produced the IMG deal and then the UFC. Ari says Durban "learns everything about the company".

David Senra▶ 6:38

Endeavor won IMG by bidding far above a rival to end the contest. Egon Durban told Ari to bid $400 million over the rival and take it off the table. Peter Chernin's group offered about $1.9 billion, while Endeavor and Durban offered about $2.3 or $2.4 billion and won.

The sellers did not even want Endeavor. Durban argued the extra $400 million would never be remembered ("You're never going to remember it") and that a high enough bid would stop the rival from bidding them up. Ari had never run deals like this and called it genius. The price was about $2.4 billion; the college business ended up nearly worthless, and the international business held the value.

David Senra▶ 33:14