Multiple securities law firms, including Bleichmar Fonti & Auld LLP and Wolf Haldenstein Adler Freeman & Herz LLP, announced investigations into TKO Group Holdings' board of directors and its controlling stockholder, Endeavor Group Holdings. The investigations focus on potential breaches of fiduciary duty.
These investigations stem from TKO's October 24, 2024, agreement to acquire Professional Bull Riders, On Location, and IMG from Endeavor for $3.25 billion in Company stock. Concerns include the transaction being conflicted and TKO potentially overpaying for Endeavor’s businesses.
As a result of the acquisition, Endeavor's ownership stake in TKO is expected to increase from approximately 53% to 59%, with minority shareholders having no vote on the transaction. The law firms believe this structure may give rise to valid claims against the board and/or Endeavor.
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