TKO Group Will Acquire PBR, IMG and On Location From Majority Owner Endeavor in $3.25 Billion Deal

Ari Emanuel’s Endeavor is transferring several sports assets — including Professional Bull Riders — to TKO Group, the holding company of WWE and UFC.

TKO announced it has reached a definitive agreement with Endeavor Group (which owns a majority stake in TKO) to acquire PBR, On Location, and IMG in an all-stock transaction valued at $3.25 billion. The company said “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.”

Following the transaction, Endeavor expects to own approximately 59% of TKO alongside the other existing TKO shareholders, who will own the remaining 41%. The transaction is subject to purchase price adjustments to be settled in cash and equity, according to Endeavor. It’s expected to close in the first half of 2025, subject to customary closing conditions and required regulatory approvals (with no additional stockholder approval required).

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Shares of TKO were down 8% in midday trading Thursday on the news, dropping below $116/share. In a research note, Seaport Research analyst David Joyce said the TKO deal was a “logical recombination of assets” and reiterated his “buy” rating on the stock. “We think there is nearly 20% upside in TKO shares, and would be buying this pullback,” Joyce wrote, while reducing his price target on the stock from $137 to $135 per share to account for the impact of issuing $3.25 billion of equity to Endeavor.

Separately, Endeavor in August said it is shopping its sports gambling and technology businesses OpenBet and IMG Arena. That came after Endeavor announced a go-private deal this spring with private-equity firm Silver Lake giving the company an equity value of $13 billion. That deal is expected to close in the first quarter of 2025; TKO is not part of the Endeavor-Silver Lake transaction and will remain a publicly traded company. 

In addition, TKO announced Thursday that its board authorized a share repurchase program of up to $2.0 billion of its Class A common stock and the initiation of a quarterly cash dividend program, under which TKO shareholders will receive their pro rata share of $75 million in quarterly distributions.

“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,” said Emanuel, who serves as executive chair and CEO of TKO as well as CEO of Endeavor. “This underscores our continued focus on delivering sustainable long-term value for our shareholders.”

Mark Shapiro, president and COO of TKO (and Endeavor’s president), said: “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.”

PBR bills itself is the “world’s premier bull riding league,” organizing more than 200 annual live events attended by some 1.25 million fans, and reaching more than 285 million households in more than 65 territories. Under the TKO transaction, PBR CEO and Commissioner Sean Gleason will continue to lead the organization.

On Location produces “premium experiences” for fans attending more than 1,200 sporting events, including the Super Bowl, Ryder Cup, NCAA Final Four, FIFA World Cup 26, and the 2026 and 2028 Olympic and Paralympic Games, in addition to year-round live events organized by UFC and WWE. On Location president Paul Caine will continue to lead the organization.

IMG, a global distributor and producer of sports content, will be led by president Adam Kelly. The company packages and sells media rights and brand partnerships, and provides strategic consultancy, digital services and event management for more than 200 rightsholders. Clients include the NFL, English Premier League, International Olympic Committee, National Hockey League, Major League Soccer, ATP and WTA Tours, the All England Lawn Tennis & Croquet Club (Wimbledon), EuroLeague Basketball, DP World Tour, and The R&A, as well as UFC, WWE and PBR.

Endeavor noted that 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.