Ari Emanuel’s Endeavor is transferring cut offal sports assets — including the Professional Bull Riders — to TKO Group, the helderlying company of WWE and UFC.
TKO declared it has accomplished a definitive consentment with Endeavor Group (which owns a presentantity sacquire in TKO) to acquire PBR, On Location, and IMG in an all-equity transaction appreciated at $3.25 billion. The company shelp “the strategic acquisition of these sports and hospitality assets from Endeavor broadens TKO’s operational footprint in the rapid-lengthening premium sports labelet and allows honest participation in the upside from partner leagues and events.”
In insertition, TKO declared that its board apvalidated a dispense reacquire program of up to $2.0 billion of its Class A common stock and the initiation of a quarterly cash dividfinish program, under which TKO dispensehelderlyers will acquire their pro rata dispense of $75 million in quarterly distributions.
Ariel Emanuel, Executive Chair and CEO of TKO, shelp: “Today’s declarements mirror the proceedd strength of our underlying business and our promisement to deploying capital thraw a constant capital allocation strategy, including thraw our dispense reacquire program and quarterly cash dividfinish program. This underscores our proceedd intensify on deinhabitring persistable extfinished-term appreciate for our dispensehelderlyers.”
Mark Shapiro, Pdwellnt and COO of TKO, shelp: “PBR, On Location, and IMG are industry-guideing assets that uncomardentingfilledy better TKO’s portfolio and reinforce our position in premium sports globassociate. Wilean TKO, they will help power the lengthenth of our revenue streams and position us to apprehfinish even more upside from some of the most attrdynamic parts of our sports ecosystem: media rights, inhabit events, ticket sales, premium experiences, brand partnerships, and site fees. These assets are already built into our business strategy at TKO and will serve to further better our sturdy track sign up of execution apass UFC and WWE.”
PBR is the world’s premier bull riding league organizing more than 200 annual inhabit events, welcoming approximately 1.25 million fans, and accomplishing more than 285 million hoemployhelderlys in more than 65 territories. PBR CEO and Comleave outioner Sean Gleason will proceed to guide the organization.
On Location is a guideing provider of premium experiences for fans joining more than 1,200 sporting events, including the Super Bowl, Ryder Cup, NCAA Final Four, FIFA World Cup 26, and the 2026 and 2028 Olympic and Paralympic Games, in insertition to year-round inhabit events systematic by UFC and WWE. On Location pdwellnt Paul Caine will proceed to guide the organization.
IMG is one of the world’s hugest global distributors and producers of sports satisfied, packages and sells media rights and brand partnerships, and provides industry-guideing strategic adviseancy, digital services, and event deal withment for more than 200 rightshelderlyers. Clients include the National Football League, English Premier League, International Olympic Committee, National Hockey League, Major League Soccer, ATP and WTA Tours, the All England Lawn Tennis & Croquet Club (Wimbledon), EuroLeague Basketball, DP World Tour, and The R&A, as well as UFC, WWE, and PBR. The acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis reconshort-termation, nor IMG’s filled events portfolio. Adam Kelly will guide IMG as pdwellnt.
Under the terms of the consentment, TKO will acquire the Endeavor assets for a total ponderation of $3.25 billion, based on the 25-trading-day volume-weighted mediocre price of TKO’s Class A common stock for the period finishing on October 23, 2024. Endeavor will acquire approximately 26.14 million common units of TKO Operating Company, LLC and will subscribe for an identical number of dispenses of TKO’s Class B common stock, with Endeavor foreseeed to own approximately 59% of TKO aextfinishedside the other existing TKO dispensehelderlyers, who will own the remaining 41% upon completion of the transaction. The transaction is also subject to acquire price adfairments to be rerepaird in cash and equity.
TKO established a Special Committee of autonomous honestors of the board to check, barachieve, and ponder the recommendd transaction. The Special Committee checked, barachieved, agreedly apshowd, and recommfinished approval of the recommendd transaction by TKO’s board of honestors. Folloprosperg establishal and agreed approval by TKO’s board of honestors, the definitive consentment was signed, and the transaction was apshowd by the written consent of stockhelderlyers reconshort-terming a presentantity of the exceptional voting interests of TKO.
The transaction is subject to the satisfaction of customary closing conditions and needd regulatory approvals. No other stockhelderlyer approval is needd. The transaction is foreseeed to shut in the first half of 2025.
