TKO Group Holdings said on Thursday it would acquire some of Endeavor Group Holdings’ sports assets in a deal valued at $3.25 billion, bolstering its core Ultimate Fighting Championship and World Wrestling Entertainment businesses.
The deal will include Endeavor’s bull riding league Professional Bull Riders (PBR), luxury hospitality division On Location and sports marketing agency IMG.
Shares of TKO were down 8.7%, while Endeavor was trading 1.1% lower.
“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,” Mark Shapiro, president and COO of TKO, said in a statement.
The transaction is expected to close in the first half of 2025.
PBR organizes more than 200 annual live events attended by more than 1 million fans. Its CEO Sean Gleason will continue to lead the organization, TKO said.
On Location provides premium hospitality for more than 1,200 sporting events, including the Super Bowl, Ryder Cup, FIFA World Cup and Olympics.
Endeavor’s IMG packages and sells media rights and brand partnerships, providing strategic consultancy, digital services, and event management for clients, including the National Football League, English Premier League and the International Olympic Committee.
TKO, majority owned by Endeavor, said the acquisition of IMG does not include businesses associated with the IMG brand in licensing, models and tennis representation, nor its full events portfolio.
The company also announced a $2 billion share buyback and a quarterly cash dividend program of $75 million.
Earlier this year, private equity firm Silver Lake, the biggest investor in Endeavor, agreed to a deal to take the talent and entertainment agency private for $13 billion.
Source: Reuters.com