TKO falls on $3.25 bln deal to buy some sports assets from Endeavor

Endeavor group

24/10/2024 15:20

(Updates)
    ** Shares of sports and entertainment firm TKO Group
Holdings  TKO.N  fall 6.3% to $118.04 in morning trading
    ** TKO will buy some of Endeavor Group Holdings'  EDR.N 
sports assets including Professional Bull Riders, On Location
and IMG in a deal valued at $3.25 bln
    ** EDR is expected to own about 59% of TKO after the
completion of the transaction, possibly in the first half of
2025
    ** "The challenge of the deal is TKO has benefited from the
simplicity and investors’ understanding of its growth
trajectory. As was the issue with Endeavor, these are assets
investors don't know well and don't know how to forecast" -
LightShed Partners
    ** Earlier this year, private equity firm Silver Lake said
it would take EDR private for $13 bln
    ** Up to last close, TKO stock up ~54% YTD

 (Reporting by Jaspreet Singh in Bengaluru)
 ((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))