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TKO Group Holdings, Inc. (NYSE:TKO), currently trading near its 52-week high at $141.92 and boasting a remarkable 94.8% return over the past year, has revealed additional financial details on its proposed acquisition of several Endeavor Group Holdings, Inc. businesses, according to a recent SEC filing.
The transaction, initially announced on October 24, 2024, involves the acquisition of the Professional Bull Riders, On Location, and IMG businesses.
The company's latest SEC Form 8-K, dated December 10, 2024, supplements previous registration statements with unaudited pro forma condensed combined financial information, combined financial statements, and unaudited combined financial statements. These documents provide financial data as of September 30, 2024, and for the years ending December 31, 2023, 2022, and 2021.
According to InvestingPro data, TKO currently generates $2.78 billion in revenue with an EBITDA of $655.7 million, maintaining a strong financial health score of 2.86 (rated as "GOOD").
The pro forma financial information aims to illustrate the hypothetical performance of TKO Group Holdings and the acquired businesses as if they had been combined during the stated periods.
However, this information does not necessarily predict future results once the acquisition is complete. InvestingPro subscribers have access to 15 additional key insights about TKO's valuation and growth prospects, including detailed analysis of its current market position and future potential.
TKO Group Holdings cautions that the acquisition is subject to risks, including potential delays, unforeseen liabilities, and the possibility that anticipated benefits may not materialize within the expected timeframe. Furthermore, the company acknowledges that the transaction could divert management's attention and result in significant transaction-related costs.
Investors are advised that the acquisition is still pending and may be influenced by various factors, including regulatory approvals and market conditions. The company has stated it will not update forward-looking statements unless required by law.
The information in this article is based on a press release statement and provides a factual summary of TKO Group Holdings' latest SEC filing regarding its ongoing acquisition process.
In other recent news, TKO Group Holdings has been the subject of several major developments. The company has seen a significant increase in revenue growth, with a year-to-date surge in stock value of 71.27%, attributed to its solid foundation in sports rights.
BofA Securities analyst Brent Navon increased the price target for TKO Group Holdings to $165 from $140, while reaffirming a Buy rating on the company's shares. In contrast, Benchmark downgraded TKO shares from Buy to Hold due to potential concerns about recent acquisitions diluting growth and adjusted EBITDA margin.
TKO Group Holdings has also made strides in its financial initiatives, securing a $2.75 billion term loan and refinancing its credit facility. The company has also acquired Professional Bull Riders, On Location, and IMG from Endeavor in an all-equity deal valued at $3.25 billion, broadening its sports entertainment portfolio.
Alongside this acquisition, TKO's board approved a $2 billion share repurchase initiative and introduced a quarterly cash dividend of $75 million.
In terms of legal developments, TKO Group agreed to a $375 million settlement in a consolidated class-action antitrust lawsuit. Additionally, the company is poised for a significant negotiation period for the domestic UFC renewal with ESPN.
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