Shares of TKO Group (NYSE:TKO), the parent company formed from the merger of WWE and UFC, fell over 15% at the time of writing. This comes despite signing a five-year deal with NBCUniversal to bring Friday Night Smackdown back to USA Network, which already has the rights to Monday Night Raw. The deal will also allow WWE to produce four primetime specials per year. The contract is reportedly valued at $1.4 billion, according to the Wall Street Journal. This is a substantial increase from the current contract with Fox, which comes in at $1 billion.
WWE president Nick Khan stated that “NBCUniversal has been a tremendous partner of WWE for decades. We are excited to extend this longstanding relationship by bringing SmackDown to USA Network on Friday nights and look forward to debuting multiple WWE special events annually on NBC.”
Is TKO Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TKO stock based on six Buys and one Hold, as indicated by the graphic above. Furthermore, the average price target of $127.50 per share implies 49.4% upside potential.