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Investing.com - TKO Group Holdings (NYSE:TKO), currently trading at $180.73 and up over 10% in the past week, maintained its Buy rating from UBS, which reiterated its $164.00 price target following the announcement of a new media rights deal. The company, with a market capitalization of nearly $36 billion, is trading near its 52-week high according to InvestingPro data.
TKO Group revealed a new UFC U.S. rights agreement with Paramount that will begin in 2026. The seven-year deal covers all UFC events, including 13 numbered events and 30 Fight Night events, and is valued at approximately $1.1 billion per year.
The agreement represents more than a twofold increase in average annual value compared to the current deal, exceeding UBS’s renewal estimate of $945 million per year. The deal includes single-digit percentage escalators throughout its term.
All UFC events will stream on Paramount+, while numbered events will be simulcast on CBS, providing expanded audience reach. The new arrangement also moves away from the pay-per-view model for numbered events.
UBS views the deal as a positive outcome for TKO Group, noting it achieves monetization goals while creating potential for audience growth through broader distribution and the elimination of the pay-per-view structure for major events.
In other recent news, TKO Group Holdings has been active with several significant developments. The company announced a $7.7 billion seven-year media rights agreement with Paramount, making it the exclusive home for all UFC events in the United States. This deal, with an average annual value of $1.1 billion, represents a substantial increase from the previous contract. Following this announcement, Goldman Sachs raised its price target for TKO Group to $202, maintaining a Buy rating, while BofA Securities increased its target to $210, also keeping a Buy rating. Wolfe Research adjusted its price target to $211, citing expectations for improved long-term free cash flow. Jefferies reiterated its Buy rating and maintained a $220 price target, expressing confidence in TKO’s media rights strategy. Meanwhile, Morgan Stanley (NYSE:MS) held its Equalweight rating with a $165 price target, noting the expanded reach from the new distribution agreement with Paramount. These developments indicate a period of strategic growth and enhanced market positioning for TKO Group.
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