Today’s TKO news of acquiring PBR, On Location, and IMG
didn’t go down well with Wall Street and the stock is down
around 9% at time of this writing.

Under the terms of the agreement, TKO will acquire the
Endeavor assets for a total consideration of $3.25 billion,
based on the 25-trading-day volume-weighted average price of
TKO’s Class A common stock for the period ending on October
23, 2024.

Endeavor will receive approximately 26.14 million common
units of TKO Operating Company, LLC and will subscribe for
an equal number of shares of TKO’s Class B common stock,
with Endeavor expected to own approximately 59% of TKO
alongside the other existing TKO shareholders, who will own
the remaining 41% upon completion of the transaction.

The transaction is also subject to purchase price
adjustments to be settled in cash and equity.

In addition to the acquisition news, the company also said
that that its board of directors has 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 pursuant to which holders of TKO’s Class A common
stock will receive their pro rata share of $75.0 million in
quarterly distributions to be made by TKO Operating Company,
LLC.