TKO Group Holdings is putting its money where its mouth is. The powerhouse behind WWE and UFC just announced a massive $1 billion repurchase of its Class A common stock, sending a strong message about its faith in the companys futureand its value on Wall Street.
In a new press release, TKO revealed that it has entered into an accelerated share repurchase (ASR) agreement worth $800 million with Morgan Stanley. That move will be followed by a $174 million 10b5-1 trading plan and a previously completed $26 million repurchase via a private transaction. Altogether, this brings the total value of the plan to a clean $1 billionsourced directly from a $1.0 billion term loan that closed on September 15. President and COO Mark Shapiro didnt hold back in explaining the companys rationale:
Shapiro made it clear this wasnt a one-off stunt, adding:
The ASR agreement will see TKO pay $800 million upfront on September 16, 2025, and receive an initial delivery of approximately 3.16 million shares. The final number of shares will depend on the volume-weighted average price of TKOs stock through December, when the ASR deal is expected to wrap up.
Once the ASR program is completed, the $174 million 10b5-1 plan will kick in. All of these transactions are part of TKOs previously announced $2 billion share repurchase authorization.
TKOs aggressive move comes on the heels of major momentum in both its wrestling and combat sports divisions. WWE and UFC continue to dominate their respective lanes, while Zuffa Boxingfounded by Dana White in collaboration with Turki Al-Sheikh of Riyadh Seasonrecently promoted the blockbuster Terrence Crawford vs. Canelo Alvarez fight.
Its not just TV ratings and premium live events that matter anymore. TKO is proving it knows how to play the long game financiallyand is willing to invest big to back it up.
Is TKO making the right call with this $1 billion buyback? Please share your thoughts and feedback in the comment section below.
