TKO Group Holdings, Inc. Enters Strategic Acquisition Deal with Endeavor Group Holdings, Inc.

TKO Group Holdings, Inc. recently filed an 8-K form with the Securities and Exchange Commission (SEC), announcing a significant transaction agreement with Endeavor Group Holdings, Inc. The deal involves the acquisition of Professional Bull Riders, On Location, and IMG businesses from Endeavor in an all-equity transaction valued at $3.25 billion. The agreement signifies a substantial move in expanding TKO’s operational presence in the premium sports market.

According to the terms outlined in the Transaction Agreement, TKO will receive the Transferred Businesses in exchange for 26,139,590 TKO Common Units, with an aggregate value of $3.25 billion based on the volume-weighted average sales price of TKO PubCo Class A Common Stock. The Closing of this transaction is expected to occur in the first half of 2025, subject to fulfilling customary conditions, such as regulatory approvals and specific closing conditions detailed in the agreement.

The Transaction Agreement also entails the entry into ancillary agreements at Closing, encompassing a transition services agreement and trademark transfer and licensing agreements between the involved parties. Moreover, it includes provisions for customary indemnification by both TKO and Endeavor regarding pre-Closing and post-Closing obligations, breaches, and other specified situations.

Furthermore, TKO released a press statement disclosing the Board’s approval of a capital return program and a share repurchase program of up to $2 billion of its Class A common stock. The company has also sanctioned a quarterly cash dividend program, with holders of Class A common stock set to receive a pro rata share of $75 million quarterly distributions.

TKO anticipates commencing quarterly cash dividend payments on March 31, 2025, with the share repurchase program having no expiration and expected completion within approximately three to four years. These initiatives are separate from and not contingent upon the finalization of the aforementioned acquisition deal.

The disclosure also mentioned an upcoming audio webcast scheduled for October 24, 2024, at 8:00 a.m. ET, detailing the transaction and capital return programs. Additionally, TKO communicated that future dividend declarations will be contingent upon various factors such as operational performances, financial conditions, and market dynamics.

Investors are advised that the forward-looking statements included in the disclosures are subject to risks and uncertainties that could cause actual results to differ materially from the expressed expectations. TKO aims to keep investors informed through a combination of press releases, SEC filings, public calls, webcasts, and its dedicated Investor Relations website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read TKO Group’s 8K filing here.

About TKO Group

TKO Group Holdings, Inc operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets.