TKO antitrust settlement a positive outcome, says Guggenheim

After TKO Group (TKO) announced that they have reached an agreement to settle two class action lawsuits filed by former UFC athletes for an aggregate settlement of $335M payable in installments, Guggenheim analyst Curry Baker said the firm views this as “a positive outcome for multiple reasons.” The deal removes a litigation overhang that “could have gone on for years,” the amount “should be easily digestible,” and it likely clears an overhang for shareholder returns to be announced potentially later this year, with the ongoing Endeavor Group (EDR) strategic review “being the other holdup,” the analyst tells investors. Guggenheim keeps a Buy rating and $120 price target on TKO Group shares.