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Hollywood powerbroker Ari Emanuel is transferring three businesses to the listed company behind Ultimate Fighting Championship and World Wrestling Entertainment, consolidating his sports and entertainment conglomerate in a $3.25bn deal.
TKO Group, a newly-listed business majority owned by Emanuel’s Endeavor, is buying sports agency IMG, hospitality business On Location and the Professional Bull Riders league from its largest shareholder in an all-stock transaction, it said on Thursday.
The deal creates a group spanning live sport and scripted entertainment, media rights, events, ticketing and branding, and is the latest in a series of transactions that have shaken up Endeavor’s portfolio.
Endeavor acquired WWE, the pro wrestling group led for decades by Vince McMahon, in April last year, and merged it with UFC into TKO, which began trading on the New York Stock Exchange in September 2023. The group’s shares have risen about 50 per cent over the past year.
TKO also set out plans to return up to $2bn to holders of its class A common stock through a buyback programme, and pay a quarterly cash dividend worth $75mn.
On Thursday TKO president and chief operating officer Mark Shapiro said the addition of PBR, On Location, and IMG would help the group strengthen its position in premium sports.
“Within TKO, [the businesses] 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,” said Shapiro.
It comes as Endeavor, which is controlled by Emanuel and investment firm Silver Lake, works towards taking the company private, and streamlining it to focus on talent representation business WME. The company’s portfolio also includes the Frieze Art Fair.
TKO said it created a special committee of independent directors to review, negotiate, and consider the proposed deal.
Endeavor expects to own roughly 59 per cent of TKO on completion of the $3.25bn acquisition, which is expected to take place in the first half of 2025. The group said in August that it was also planning to sell sports data and technology businesses OpenBet and IMG Arena.
Silver Lake said in April that it would take Endeavor private, leaving the New York Stock Exchange in a deal that valued the group at $13bn.
Morgan Stanley advised TKO. Moelis advised the special committee.
