On Thursday, TKO Group, the parent company of WWE and UFC, announced it is acquiring Professional Bull Riders (PBR), On Location, and IMG from Endeavor Group. This all-stock transaction is valued at $3.25 billion and aims to enhance TKO’s offerings in the premium sports market.
Professional Bull Riders is a leading bull riding league that hosts over 200 live events each year, attracting approximately 1.25 million fans and reaching 285 million households across more than 65 countries. On Location specializes in organizing live events for over 1,200 major sports occasions, including the Super Bowl, Ryder Cup, and NCAA Final Four. IMG, meanwhile, is a key player in sports media, distributing and producing sports content, managing media rights, and providing consulting alongside event management services to prominent clients like the NFL and NHL.
These acquisitions will strengthen TKO’s portfolio, as TKO’s Chief Operating Officer Mark Shapiro remarked, “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally. They will contribute to our revenue growth and help us capitalize on lucrative opportunities in various areas such as media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees.”
As part of this deal, Endeavor is set to receive approximately 26.14 million common units of TKO Operating Co. and will subscribe for an equal number of TKO’s Class B shares. Post-transaction, Endeavor is expected to own around 59% of TKO, while existing TKO shareholders will maintain 41% of ownership. The closing of this deal is anticipated in the first half of the upcoming year.
This strategic move is also aligned with Endeavor’s plan to divest from certain assets as it seeks to transition into a private entity through a proposed deal with private equity firm Silver Lake, which was revealed back in April. Ariel Emanuel, who is the CEO of Endeavor, also serves as the executive chair and CEO of TKO.
In addition, TKO Group revealed that its board has approved a stock repurchase program of up to $2 billion. Following the news, shares of TKO Group Holdings Inc., located in Stamford, Connecticut, increased by over 1% before the market opened.
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