Dana White and TKO Are Taking The Bulls By The Horns With a New $3.25 Billion Investment

When you own both WWE and UFC like Dana White, where do you go from there? Well, if you’re TKO Group Holdings, the only way forward is to rope in even more sports entertainment (this time, in the form of bull riding and premium live events).

In a deal that might just redefine “buying in bulk,” TKO has agreed to pay $3.25 billion to acquire Professional Bull Riders (PBR), On Location, and IMG from Endeavor Group. The company that owns Conor McGregor’s octagon and John Cena’s underwear fake fighting ring is now getting into bull riding. Yeehaw.

Let’s start with the headliner of the deal. Professional Bull Riders (PBR) – a sports league that brings bull-riding competitions to the masses rednecks with 200+ events each year. That’s 200 opportunities to see brave souls (some might call them idiots) ride bulls while a live crowd of over a million fans watches in suspense. Fun fact: PBR’s reach extends to more than 285 million households across 65 countries. 

On Location, the next big addition, is TKO’s new way to get in on premium event experiences. Think Super Bowl suites, exclusive access to the Ryder Cup, and all kinds of other high-end packages for over 1,200 major sports events annually. Instead of being squished in the bleachers, you’re lounging in a premium seat with a five-star meal, maybe even rubbing elbows with a celeb or two. 

For those who want way more than just a seat and a hot dog, On Location is the ultimate upgrade – and TKO’s found a whole new way to collect cash from fans who are in it for the full, luxury experience. In 2023 alone, On Location generated $700 million in revenue, a number TKO sees as only the starting point for growth in this area.

Then there’s IMG, a sports content and management giant with a broad and lucrative reach. IMG manages media rights for major sports leagues, including the NFL, NHL, and Premier League, handling everything from licensing deals to broadcast partnerships. Beyond media rights, IMG advises top sports brands, builds high-profile partnerships, and manages sponsorships, driving consistent revenue from an audience with an insatiable appetite for sports content. In 2022, IMG’s media partnerships accounted for $1.5 billion in revenue. This acquisition means TKO now controls not only the production of premium sports events but also how they’re distributed and marketed, strengthening its position in every aspect of the sports entertainment ecosystem.

This acquisition also means Endeavor, which owns about 51% of TKO, will bump up its equity to 59% when the deal closes. What’s in it for TKO? A revenue boost, for starters. Expanding beyond UFC and WWE, this diversified portfolio is a strategic way to tap into the premium sports market and, let’s face it, snag even more revenue from fans who can’t resist their favorite athletes and events. And TKO’s board of directors isn’t just sitting on their hands here; they’ve greenlit a stock buyback up to $2 billion in Class A shares, with dividends set to kick off at $75 million a pop.

Mark Shapiro, TKO’s COO, summed it up: “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally.”  With the deal expected to close by mid-2025 (pending regulatory approval and a few legal hoops), TKO is poised to make an even bigger name for itself across a broader sports entertainment market. From the octagon and the wrestling ring to the rodeo arena and luxury suites at major sports events, TKO is serving up something for every flavor of fan – whether they’re looking for headlocks or hold-onto-your-hat bull rides.

So, what’s next for TKO? Are they going to start buying up senior pickleball leagues in Palm Beach, Florida, too? Who knows, but if this acquisition spree is any indication, they’re definitely not stopping here.

Investors weren’t exactly doing cartwheels over the news as TKO shares dropped 8%.

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Stock.News has a position in TKO.