TKO Group, controlled by Endeavor Group, said on Thursday that its board of directors has agreed to acquire Professional Bull Riders (PBR), the On Location hospitality company, and IMG from Endeavor in an all-stock transaction valued at 3, $25 billion and authorized a stock repurchase program. up to $2.0 billion and the initiation of a quarterly cash dividend program valued at $75.0 million in quarterly distributions.
“In addition to integrating TKO's core UFC and WWE businesses, the strategic acquisition of these sports and hospitality assets from Endeavor expands TKO's operational footprint in the rapidly growing premium sports market and enables direct upside participation by partner leagues and events,” the company said.
After the deal closes, Endeavor is expected to own approximately 59% of TKO “along with other existing TKO shareholders, who will own the remaining 41%,” the companies said. “The transaction is also subject to purchase price adjustments to be settled in cash and stock.” The transaction is expected to close in the first half of 2025.
Ariel Emanuel, executive chairman and CEO of TKO, said: “Today's announcements reflect the continued strength of our underlying businesses and our commitment to deploying capital through a balanced capital allocation strategy, including through our stock repurchases and the quarterly cash dividend program. This underlines our continued focus on delivering long-term sustainable value for our shareholders.”
Mark Shapiro, president and COO of TKO, added: “PBR, On Location and IMG are industry-leading assets that significantly enhance TKO's portfolio and strengthen our position in premium sports globally. Within TKO, they will help supercharge the growth of our revenue streams and position us to gain even more benefits from some of the most exciting parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, partnerships with brands and site commissions. These resources are already integrated into our business strategy at TKO and will serve to further enhance our strong track record of execution in UFC and WWE.
In April, Beverly Hills-based sports and entertainment giant Endeavor, owner of talent agencies WME and IMG, betting data company OpenBet and marketing agency 160over90, said it would be acquired by majority shareholder Silver Lake at a valuation of $13 billion.
IMG, one of the world's largest global distributors and producers of sports content, packages and sells media rights and brand partnerships, as well as provides strategic consulting, digital services and event management services to more than 200 rights holders. Its clients include the NFL, NHL, English Premier League, International Olympic Committee, All England Lawn Tennis & Croquet Club (Wimbledon), UFC, WWE and PBR, among others.
“The acquisition of IMG does not include assets associated with the IMG brand in tennis licensing, modeling and representation, nor IMG’s entire event portfolio,” the companies stressed. Adam Kelly will lead IMG as president.
PBR, described as “the world's premier equestrian league that hosts more than 200 annual live events, welcomes approximately 1.25 million fans and reaches more than 285 million households in more than 65 territories,” will continue to be led by PBR CEO and Commissioner Sean Gleason. On Location will continue to be led by President Paul Caine.