The video – which circulated around the Internet on Monday but has since been taken off YouTube – was recorded several years ago, LaBeouf's rep told E! online.
In it, LaBeouf appears to be at a house party where, in an attempt to entice his friend into a slapping contest, the star calls the friend an anti-gay slur – and gets hit in return.
"The videotape that is currently being circulated is several years old and captures Shia playing a game among friends in which he uses a derogatory word toward a friend," LaBeouf's rep continued. "He regrets having used the word in any capacity and is very embarrassed that this footage is being seen by anyone."
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Watch Shia's controversial video here
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