TKO Group approves capital return program, acquires sports assets from Endeavor Group

TKO Group (TKO) has authorized a share repurchase program of up to $2.0B of its Class A common stock and the initiation of a quarterly cash dividend program pursuant to which holders of TKO’s Class A common stock will receive their pro rata share of $75.0M in quarterly distributions to be made by TKO Operating Company. Also today, TKO has reached a definitive agreement with Endeavor Group (EDR) to acquire Professional Bull Riders, On Location, and IMG in an all-equity transaction valued at $3.25B. PBR is a bull riding league organizing more than 200 annual live events, welcoming approximately 1.25 million fans, and reaching more than 285 million households in more than 65 territories. PBR CEO and Commissioner Sean Gleason will continue to lead the organization. On Location is a leading provider of premium experiences for fans attending more than 1,200 sporting events. On Location president Paul Caine will continue to lead the organization. IMG is one of the world’s largest global distributors and producers of sports content, packages and sells media rights and brand partnerships. The acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis representation, nor IMG’s full events portfolio. Adam Kelly will lead IMG as president. Endeavor will receive approximately 26.14 million common units of TKO Operating Company and will subscribe for an equal number of shares of TKO’s Class B common stock, with Endeavor expected to own approximately 59% of TKO alongside the other existing TKO shareholders, who will own the remaining 41% upon completion of the transaction. The transaction is expected to close in the first half of 2025.