TKO Group Holdings, the parent company of WWE and UFC, has announced the acquisition of Professional Bull Riders (PBR), On Location, and IMG from Endeavor Group in an all-stock deal valued at $3.25 billion.
This transaction is part of Endeavor’s strategy to divest some of its assets, at a time when its privatization is being considered through a deal with the private equity firm Silver Lake, announced in April.
Ariel Emanuel, CEO of Endeavor, also serves as executive chairman and CEO of TKO.Acquisition Details
Professional Bull Riders is a bull riding league that organizes more than 200 live events annually, attracting approximately 1.25 million fans and reaching over 285 million homes in over 65 territories.
On Location is a live events company that manages over 1,200 sporting events, including the Super Bowl, the Ryder Cup, and the NCAA Final Four.
IMG, for its part, is a distributor and producer of sports content, which packages and sells media rights and brand partnerships, as well as offering consulting, digital and event management services to clients such as the National Football League and the National Hockey League.
TKO Group, in a statement, has highlighted that this acquisition will complement its existing businesses and expand its reach in the premium sports market.
PBR, On Location, and IMG are industry-leading assets that significantly enhance TKO’s portfolio and strengthen our position in premium sports globally.
Mark Shapiro, TKO President and COO
Shapiro added that, within TKO, these acquisitions will drive revenue growth and enable capitalizing on opportunities in key areas of the sports ecosystem, such as media rights, live events, ticketing, premium experiences, brand partnerships, and site fees.
As part of the agreement, Endeavor will receive approximately 26.14 million common units of TKO Operating Co. and subscribe to an equal number of TKO Class B shares. Endeavor is expected to own approximately 59% of TKO, while existing TKO shareholders will hold the remaining 41% once the transaction is complete.
By expanding its presence in the premium sports market, TKO is poised to unlock new revenue streams through media rights, live events, ticketing, premium experiences, brand partnerships, and site fees.
Randal Konik, Jefferies
The agreement is expected to close in the first half of next year.
Additionally, TKO Group announced the approval of the repurchase of up to $2 billion of its common stock.
TKO Group Holdings Inc., based in Stamford, Connecticut, saw its shares fall more than 8% in Thursday afternoon trading.
