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TKO to acquire Endeavor sports assets for $3.25bn

October 24, 2024

By Nik Roseveare

TKO Group, the sports and entertainment company that owns UFC and WWE, has reached a definitive agreement with Endeavor to acquire Professional Bull Riders (PBR), On Location, and IMG in an all-equity transaction valued at $3.25 billion (€3.01bn).

TKO Group said the strategic acquisition of these sports and hospitality assets from Endeavor expands its operational footprint in the fast-growing premium sports market and enables direct participation in the upside from partner leagues and events.

Additionally, TKO Group has announced that its board of directors has authorised a share repurchase programme of up to $2 billion of its Class A common stock and the initiation of a quarterly cash dividend programme pursuant to which holders of TKO’s Class A common stock will receive their pro rata share of $75 million in quarterly distributions to be made by TKO Operating Company.

Ariel Emanuel, Executive Chair and CEO of TKO, commented: “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.”

Mark Shapiro, President and COO of TKO, added: “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. These assets are already built into our business strategy at TKO and will serve to further enhance our strong track record of execution across UFC and WWE.”

PBR is a bull riding league organising more than 200 annual live events, welcoming approximately 1.25 million fans, and reaching more than 285 million households in more than 65 territories. PBR CEO and Commissioner Sean Gleason will continue to lead the company.

On Location is a provider of premium experiences for fans attending 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 addition to year-round live events organised by UFC and WWE. On Location president Paul Caine will continue to lead the company.

IMG is a global distributor and producer of sports content and packages, and sells media rights and brand partnerships, as well as porviding strategic consultancy, digital services, and event management for more than 200 rightsholders. Clients include the NFL, Premier League, International Olympic Committee, NHL, MLS, 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 representation, nor IMG’s full events portfolio. Adam Kelly will lead IMG as president.

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 per cent of TKO alongside the other existing TKO shareholders, who will own the remaining 41 per cent upon completion of the transaction. The transaction is also subject to purchase price adjustments to be settled in cash and equity.

The transaction is expected to close in the first half of 2025.

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