The Endeavor Group-controlled TKO Group said Thursday that its board of directors has agreed to acquire Professional Bull Riders (PBR), hospitality firm On Location, and IMG from Endeavor in an all-stock transaction valued at $3.25 billion, authorized a share repurchase program of up to $2.0 billion, and the initiation of a quarterly cash dividend program worth $75.0 million in quarterly distributions.
“In addition to complementing TKO’s existing core UFC and WWE businesses, the strategic acquisition of these sports and hospitality assets from Endeavor expands TKO’s operational footprint in the fast-growing premium sports market and enables direct participation in the upside from partner leagues and events,” the company said.
After the closing of the deal, Endeavor is expected to own approximately 59 percent of TKO “alongside the other existing TKO shareholders, who will own the remaining 41 percent,” the companies said. “The transaction is also subject to purchase price adjustments to be settled in cash and equity.” The transaction is expected to close in the first half of 2025.
Ariel Emanuel, executive chair and CEO of TKO, said: “Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders.”
Added Mark Shapiro, president and COO of TKO: “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally. Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees. These assets are already built into our business strategy at TKO and will serve to further enhance our strong track record of execution across UFC and WWE.”
In April, the Beverly Hills-based sports and entertainment giant Endeavor, the owner of talent agencies WME and IMG, betting data firm 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, in addition to providing strategic consultancy, digital services, and event management services for more than 200 rightsholders. Its clients include the NFL, NHL, English Premier League, the International Olympic Committee, the All England Lawn Tennis & Croquet Club (Wimbledon), UFC, WWE, and PBR, among others.
“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,” the companies highlighted. Adam Kelly will lead IMG as president.
PBR, described as “the world’s premier 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,” will continue to be led by PBR CEO and commissioner Sean Gleason. On Location will continue to be led by president Paul Caine.