“On April 4, 2024, WME IMG, LLC (“Endeavor”), an indirect subsidiary of Endeavor Group Holdings, Inc. (“EGH”), the parent company of TKO Group Holdings, Inc. (“TKO” or the “Company”), entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Vincent K. McMahon (“Seller”), pursuant to which Endeavor agreed to purchase 1,642,970 shares of Class A common stock of TKO, par value $0.00001 per share (the “Common Stock”), held by Seller at a per share price of $89.01 for an aggregate amount of $146.2 million (the “Endeavor Share Purchase”). Endeavor expects the Endeavor Share Purchase to close on or about April 9, 2024, subject to the satisfaction of customary closing conditions.”
“On April 7, 2024, TKO entered into a stock purchase agreement (the “TKO Stock Purchase Agreement” with the Seller, pursuant to which TKO agreed to purchase 1,853,724 shares of Common Stock of TKO held by Seller at a per share price of $89.01 for an aggregate amount of $165.0 million (the“TKO Share Purchase”). TKO expects the TKO Share Purchase to close on or about April 10, 2024, subject to the satisfaction of customary closing conditions. TKO intends to retire the shares of Common Stock purchased in the TKO Share Purchase following the closing of the TKO Share Purchase. TKO intends to fund the TKO Share Repurchase with approximately $150.0 million of borrowings under the revolving credit facility under the First Lien Credit Agreement dated as of August 18, 2016 by and among Zuffa Guarantor, LLC, UFC Holdings, LLC, the lenders party thereto from time to time and Goldman Sachs Bank USA, as Administrative Agent, and with cash on hand.”
The filing: https://t.co/kL254ddaCP
— Brandon Thurston (@BrandonThurston) April 8, 2024
On April 4, 2024, WME IMG, LLC, a subsidiary of Endeavor Group Holdings, Inc., announced its plans to acquire a significant stake in TKO Group Holdings, Inc. The stock purchase agreement between WME IMG and Vincent K. McMahon, the seller, involves the purchase of 1,642,970 shares of Class A common stock of TKO at a price of $89.01 per share. The total value of the transaction amounts to $146.2 million.
TKO Group Holdings, Inc. is a prominent company in the entertainment industry, known for its involvement in various sectors such as sports, media, and live events. This acquisition by WME IMG signifies its interest in expanding its presence and influence within these areas.
The Endeavor Share Purchase is expected to be finalized on or around April 9, 2024, subject to the completion of customary closing conditions. This acquisition will provide WME IMG with a significant ownership stake in TKO Group Holdings, Inc., allowing them to have a greater say in the company’s strategic decisions and operations.
Following this announcement, TKO Group Holdings, Inc. also revealed its own stock purchase agreement with Vincent K. McMahon. TKO intends to purchase 1,853,724 shares of its own Common Stock from McMahon at the same price of $89.01 per share. The total value of this transaction is $165.0 million.
TKO plans to retire the shares of Common Stock purchased in this agreement after the completion of the transaction. To fund the TKO Share Repurchase, the company intends to borrow approximately $150.0 million under its revolving credit facility and utilize cash on hand.
The TKO Share Purchase is expected to close on or about April 10, 2024, subject to customary closing conditions being met. This strategic move by TKO demonstrates its commitment to optimizing its capital structure and enhancing shareholder value.
These recent developments have generated significant interest and attention within the industry. Analysts and investors are closely monitoring the outcomes of these transactions, as they may have a considerable impact on the future direction and growth potential of both WME IMG and TKO Group Holdings, Inc.
The filing related to these agreements can be accessed through the link provided by Brandon Thurston in his tweet on April 8, 2024. This filing contains further details and information regarding the stock purchase agreements between the parties involved.
Overall, these acquisitions highlight the dynamic nature of the entertainment industry and the strategic moves being made by key players to strengthen their positions. The outcomes of these transactions will undoubtedly shape the future landscape of the industry and provide valuable insights into the strategies employed by WME IMG and TKO Group Holdings, Inc.