TKO Group Holdings announced a definitive agreement to acquire Professional Bull Riders (PBR), On Location, and IMG from Endeavor Group Holdings in an all-equity transaction valued at $3.25 billion. This strategic acquisition expands TKO's operational footprint in the premium sports market, complementing its existing UFC and WWE businesses.
The acquired assets are expected to enhance TKO's capabilities in sports rights distribution, premium hospitality, and live event experiences. Endeavor's ownership in TKO will increase from approximately 53% to 59% as a result of this transaction, which is anticipated to close in the first half of 2025.
Concurrently, TKO's board of directors authorized a share repurchase program of up to $2.0 billion of its Class A common stock. This program is expected to be completed within approximately three to four years, demonstrating a commitment to returning capital to shareholders.
Additionally, the company approved the initiation of a quarterly cash dividend program, with holders of TKO's Class A common stock to receive their pro rata share of $75.0 million in quarterly distributions. The first quarterly cash dividend payment is intended to begin on March 31, 2025.
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