Parent of WWE and UFC is buying Professional Bull Riders, On Location and IMG for $3.25 billion

The genitor institution of WWE and UFC is buying Professional Bull Riders, On Location, and IMG from Endeavor Group successful an all-stock woody weighted astatine $3.25 billion.

The waste to genitor institution TKO is portion of Endeavor’s efforts to shed immoderate of its assets arsenic it looks to beryllium taken backstage successful a projected transaction pinch backstage equity patient Silver Lake, which was announced successful April. Ariel Emanuel, who serves arsenic CEO of Endeavor, is besides executive chair and CEO of TKO.

Professional Bull Riders is simply a bull riding convention that has much than 200 yearly unrecorded events, astir 1.25 cardinal fans, and reaches much than 285 cardinal households successful much than 65 territories. On Location is unrecorded arena institution for much than 1,200 sporting events, specified arsenic nan Super Bowl, Ryder Cup and NCAA Final Four. IMG is simply a supplier and shaper of sports content, packages and sells media authorities and marque partnerships, and provides consulting, integer services and arena guidance to clients specified arsenic nan National Football League and National Hockey League.

The Associated Press and IMG co-own nan associated task SNTV, which distributes sports video and highlights astir nan world.

Parent institution TKO Group said Thursday that nan acquisition from Endeavor Group will complement its existing businesses arsenic good arsenic broaden its scope successful nan premium sports market.

“PBR, On Location, and IMG are industry-leading assets that meaningfully heighten TKO’s portfolio and fortify our position successful premium sports globally," TKO Chief Operating Officer Mark Shapiro said successful a statement. “Within TKO, they will thief powerfulness nan maturation of our gross streams and position america to seizure moreover much upside from immoderate of nan astir charismatic parts of our sports ecosystem: media rights, unrecorded events, summons sales, premium experiences, marque partnerships, and tract fees.”

As portion of nan deal, Endeavor will person astir 26.14 cardinal communal units of TKO Operating Co. and will subscribe for an adjacent number of shares of TKO’s Class B shares. Endeavor is expected to ain astir 59% of TKO, while TKO's existing shareholders will ain nan remaining 41% upon completion of nan transaction.

“By expanding its beingness successful nan premium sports market, TKO is poised to unlock caller gross streams done media rights, unrecorded events, summons sales, premium experiences, marque partnerships, and tract fees,” Randal Konik of Jefferies said successful a statement to clients. “This strategical move not only strengthens its marketplace position but besides sets nan shape for sustained maturation and accrued shareholder value.”

The woody is expected to adjacent successful nan first half of adjacent year.

TKO Group besides announced Thursday that its committee has approved nan repurchase of up to $2 cardinal of its communal stock.

Shares of TKO Group Holdings Inc., based successful Stamford, Conn., slumped much than 8% successful midday trading connected Thursday.