Oct. 24 (UPI) — Sports company TKO Holdings Thursday announced acquisition of Professional Bull Riders, On Location and IMG in an all-equity transaction with Endeavor Holdings Inc. worth $3.25 billion.
The deal is expected to broaden TKO’s focus beyond its current operation of leagues to expand into luxury hospitality and media rights consultancy.
TKO also said it will use up to $2 billion for a stock buyback program of its Class A common stock, along with a quarterly cash dividend program.
TKO said that under that dividend program, Class A common stock holders will “receive their pro rata share of $75.0 million in quarterly distributions to be made by TKO Operating Company, LLC.”
Ariel Emanuel, executive chair and CEO of TKO, said in a statement, “Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders.”
TKO President and COO Mark Shapiro said in a statement, “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally. Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees.”
TKO said in a statement describing the deal, “TKO will acquire the Endeavor assets for a total consideration of $3.25 billion … Endeavor will receive approximately 26.14 million common units of TKO Operating Company LLC and will subscribe for an equal number of shares of TKO’s Class B common stock, with Endeavor expected to own approximately 59% of TKO alongside the other existing TKO shareholders, who will own the remaining 41% upon completion of the transaction.”
The transaction is subject to regulatory approval and is expected to close in the first half of 2025.
