TKO Group, the corporate that owns WWE and UFC, is increasing into sports-adjacent properties by buying three companies for $3.25 billion from its controlling proprietor, Endeavor Group.
The companies are Skilled Bull Riders, On Location and IMG, the businesses introduced Thursday. The deal is all inventory, and Endeavor’s possession in TKO will enhance from 53% to 59%.
The transaction expands TKO’s strategic ambitions by broadening its sports activities focus past the operation of leagues. Whereas the corporate does purchase a brand new league in PBR, the world’s largest bull using league, it is also increasing into luxurious hospitality with On Location and media rights consultancy by means of IMG.
“Sports unify us and have never been in more demand,” mentioned Mark Shapiro, president and chief working officer of each Endeavor and TKO, in an interview. “At TKO, we’re primarily interested in league ownership if that exists and businesses that can power our current sports ecosystem. That could be ticket sales, hospitality, consumer products, media rights expertise. That’s what we’re getting in IMG and On Location.”
Personal fairness agency Silver Lake introduced its intentions to take Endeavor personal earlier this yr. As a part of that transaction, Silver Lake wished to divest sure belongings, Shapiro mentioned. Endeavor got here to the TKO board with a proposal to promote the three companies. TKO organized a particular committee to look at the transaction, which it in the end really helpful to the board, Shapiro mentioned.
PBR places on greater than 200 occasions yearly for greater than 1 million followers. PBR CEO and Commissioner Sean Gleason will proceed to steer the group, TKO mentioned in an announcement.
On Location gives luxurious hospitality for main sporting occasions together with the Tremendous Bowl, the Ryder Cup, March Insanity, the FIFA World Cup and the Olympics.
IMG packages and sells media rights and model partnerships, offering strategic consultancy on the most important TV offers for the NFL, English Premier League, Nationwide Hockey League, Main League Soccer, UFC, WWE and PBR. The acquisition of IMG doesn’t embrace “businesses associated with the IMG brand in licensing, models, and tennis representation, nor IMG’s full events portfolio,” in response to the TKO assertion.
Along with the transaction, TKO additionally introduced it’s initiating an annual dividend of $300 million and has licensed a share buyback program of as much as $2 billion for its Class A standard inventory.
