The Endeavor Group-controlled TKO Group stated Thursday that its board of administrators has agreed to accumulate Skilled Bull Riders (PBR), hospitality agency On Location, and IMG from Endeavor in an all-stock transaction valued at $3.25 billion, licensed a share repurchase program of as much as $2.0 billion, and the initiation of a quarterly money dividend program value $75.0 million in quarterly distributions.
“Along with complementing TKO’s present core UFC and WWE companies, the strategic acquisition of those sports activities and hospitality property from Endeavor expands TKO’s operational footprint within the fast-growing premium sports activities market and allows direct participation within the upside from accomplice leagues and occasions,” the corporate stated.
After the closing of the deal, Endeavor is anticipated to personal roughly 59 % of TKO “alongside the opposite present TKO shareholders, who will personal the remaining 41 %,” the businesses stated. “The transaction can also be topic to buy worth changes to be settled in money and fairness.” The transaction is anticipated to shut within the first half of 2025.
Ariel Emanuel, govt chair and CEO of TKO, stated: “At the moment’s bulletins mirror the continued power of our underlying enterprise and our dedication to deploying capital by means of a balanced capital allocation technique, together with by means of our share repurchase program and quarterly money dividend program. This underscores our continued concentrate on delivering sustainable long-term worth for our shareholders.”
Added Mark Shapiro, president and COO of TKO: “PBR, On Location, and IMG are industry-leading property that meaningfully improve TKO’s portfolio and strengthen our place in premium sports activities globally. Inside TKO, they’ll assist energy the expansion of our income streams and place us to seize much more upside from a few of the most tasty components of our sports activities ecosystem: media rights, dwell occasions, ticket gross sales, premium experiences, model partnerships, and website charges. These property are already constructed into our enterprise technique at TKO and can serve to additional improve our sturdy monitor file of execution throughout UFC and WWE.”
In April, the Beverly Hills-based sports activities and leisure large Endeavor, the proprietor of expertise companies WME and IMG, betting information agency OpenBet, and advertising and marketing company 160over90 — stated it will be acquired by majority shareholder Silver Lake at a valuation of $13 billion.
IMG, one of many world’s largest international distributors and producers of sports activities content material, packages and sells media rights and model partnerships, along with offering strategic consultancy, digital companies, and occasion administration companies for greater than 200 rightsholders. Its shoppers embrace the NFL, NHL, English Premier League, the Worldwide Olympic Committee, the All England Garden Tennis & Croquet Membership (Wimbledon), UFC, WWE, and PBR, amongst others.
“The acquisition of IMG doesn’t embrace companies related to the IMG model in licensing, fashions, and tennis illustration, nor IMG’s full occasions portfolio,” the businesses highlighted. Adam Kelly will lead IMG as president.
PBR, described as “the world’s premier bull driving league organizing greater than 200 annual dwell occasions, welcoming roughly 1.25 million followers, and reaching greater than 285 million households in additional than 65 territories,” will proceed to be led by PBR CEO and commissioner Sean Gleason. On Location will proceed to be led by president Paul Caine.
As a part of the asset buy settlement, Emanuel and Shapiro are giving up bonuses value $25 million and $100 million, respectively, offered within the Silver Lake deal on condition that the transactions have been agreed between the 2 managed corporations.
“The prevailing Shapiro employment settlement and Shapiro A&R employment settlement present Mr. Shapiro with the chance to obtain sure asset sale bonuses (the ‘asset sale bonuses’) with a worth of as much as $100 million in reference to gross sales or tendencies of sure specified property of the corporate or Endeavor Working Firm (every, an ‘asset sale’),” a regulatory submitting on Thursday famous. Amendments present that Shapiro “waives his eligibility to obtain the asset sale bonuses. To the extent the transaction just isn’t consummated or the transaction settlement is terminated by its phrases, Mr. Shapiro will once more be eligible to obtain asset sale bonuses with a worth of as much as $100 million.”
An modification for Emanuel supplies that he waives his eligibility to obtain a $25 million asset sale bonus.