Cody Rhodes Comments on Rumors of Him vs. Roman Reigns vs. The Rock Triple Threat Match at WrestleMania 41
A recent episode of the Vegas Revealed podcast featured Cody Rhodes as the guest. One of the topics discussed included Rhodes’ thoughts about the recent rumors of WWE’s potential plans for him to defend his Undisputed WWE Championship against Roman Reigns and The Rock in a Triple Threat match at next year’s WrestleMania 41 event.
“There are so many rumors circulating. It eats up the social feed, all the different rumors of what the matches might be. The hardest thing to do in WWE, sports entertainment, and pro wrestling in general is not to win [the WWE Title], the hardest thing to do is main event WrestleMania. I don’t care what the rumor is, as long as the rumor is I’m in the main event of WrestleMania. I’m good with it. What I can say for those who keep an eye on the rumor, I bet you what they get at WrestleMania 41 is unexpected even to them. Even the people who follow this, the diehards who feel like they have their finger on the pulse, this one is going to be tough. This one is going to be unexpected, is the best way to put it, but in the best of ways.”
Transcript h/t: Fightful.com
TKO Group Announces Acquisition of Professional Bull Riders & Two Other Companies from Endeavor
WWE and UFC parent company TKO Group Holdings announced on Thursday that they had reached a definitive agreement with Endeavor to acquire Professional Bull Riders, On Location, and IMG in an all-equity transaction valued at $3.25 billion.
It was announced that this new acquisition deal will help expand TKO’s operational footprint in the fast-growing premium sports market.
TKO Announces Approval of Capital Return Program; Also Announces Strategic Acquisition of Sports Assets From Endeavor
Board Authorized $2 Billion Share Repurchase Program and Approved Initiation of Quarterly Cash Dividend Program of $75 Million
All-Equity Transaction Includes Professional Bull Riders, On Location, and IMG
Special Committee of TKO’s Independent Directors Unanimously Recommended Approval of Transaction
NEW YORK–(BUSINESS WIRE)– TKO Group Holdings, Inc. (“TKO”) (NYSE: TKO), a premium sports and entertainment company, announced today 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.
Also today, TKO announced it has reached a definitive agreement with Endeavor Group Holdings, Inc. (“Endeavor”) (NYSE: EDR) to acquire Professional Bull Riders (“PBR”), On Location, and IMG in an all-equity transaction valued at $3.25 billion. In addition to complementing TKO’s existing core UFC and WWE businesses, the strategic acquisition of these sports and hospitality assets from Endeavor expands TKO’s operational footprint in the fast-growing premium sports market and enables direct participation in the upside from partner leagues and events.
Ariel Emanuel, Executive Chair and CEO of TKO, said: “Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders.”
Mark Shapiro, President and COO of TKO, said: “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally. Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees. These assets are already built into our business strategy at TKO and will serve to further enhance our strong track record of execution across UFC and WWE.”
TRANSACTION EXPANDS TKO’S LEADERSHIP AND POWERS GROWTH IN PREMIUM SPORTS
PBR is the world’s premier bull riding league organizing more than 200 annual live events, welcoming approximately 1.25 million fans, and reaching more than 285 million households in more than 65 territories. PBR CEO and Commissioner Sean Gleason will continue to lead the organization.
On Location is a leading provider of premium experiences for fans attending more than 1,200 sporting events, including the Super Bowl, Ryder Cup, NCAA Final Four, FIFA World Cup 26, and the 2026 and 2028 Olympic and Paralympic Games, in addition to year-round live events organized by UFC and WWE. On Location president Paul Caine will continue to lead the organization.
IMG is one of the world’s largest global distributors and producers of sports content, packages and sells media rights and brand partnerships, and provides industry-leading strategic consultancy, digital services, and event management for more than 200 rightsholders. Clients include the National Football League, English Premier League, International Olympic Committee, National Hockey League, Major League Soccer, ATP and WTA Tours, the All England Lawn Tennis & Croquet Club (Wimbledon), EuroLeague Basketball, DP World Tour, and The R&A, as well as UFC, WWE, and PBR. The acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis representation, nor IMG’s full events portfolio. Adam Kelly will lead IMG as president.
Transaction Details
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.
TKO formed a Special Committee of independent directors of the board to review, negotiate, and consider the proposed transaction. The Special Committee reviewed, negotiated, unanimously approved, and recommended approval of the proposed transaction by TKO’s board of directors. Following formal and unanimous approval by TKO’s board of directors, the definitive agreement was signed, and the transaction was approved by the written consent of stockholders representing a majority of the outstanding voting interests of TKO.
The transaction is subject to the satisfaction of customary closing conditions and required regulatory approvals. No other stockholder approval is required. The transaction is expected to close in the first half of 2025.
Advisors
Morgan Stanley & Co. LLC is serving as financial advisor to TKO. Latham & Watkins LLP is serving as legal advisor to Endeavor. Moelis & Company LLC is serving as financial advisor to the special committee and Skadden, Arps, Slate, Meagher & Flom LLP as legal advisor to the special committee.
CAPITAL RETURN PROGRAM
TKO will determine at its discretion the timing and the amount of any repurchases based on its evaluation of market conditions, share price, and other factors. Repurchases under the share repurchase program may be made in the open market, in privately negotiated transactions or otherwise, and TKO is not obligated to acquire any particular amount under the share repurchase program. The share repurchase program has no expiration, is expected to be completed within approximately three to four years and may be modified, suspended, or discontinued at any time.
TKO’s dividend will be paid quarterly to TKO’s Class A common shareholders. TKO intends to begin making quarterly cash dividend payments on March 31, 2025. Future declarations of quarterly dividends are subject to the determination and discretion of TKO based on its consideration of various factors, such as its results of operations, financial condition, market conditions, earnings, cash flow requirements, restrictions in its debt agreements and legal requirements and other factors that TKO deems relevant.
The share repurchase program authorization and approval to initiate a quarterly cash dividend program are separate from and are not conditional upon TKO closing the acquisition of PBR, On Location, and IMG.
Following the announcement, Wall Street reacted negatively towards TKO’s new deal resulting in TKO’s stocks dropping by $11 per share from its opening trading of $126 per share at the start of Thursday’s trading hours and closed at $105 per share following after hours trading.
WWE News & Notes
MLB team New York Yankees recently released a hype video narrated by longtime Yankees fan Damian Priest ahead of their 2024 World Series matchup against the Los Angeles Dodgers.
Vulture Festival recently announced that Becky Lynch will be among the guests at their upcoming Vulture Festival 2024 event on November 16-17 in Los Angeles, California. It was announced that Lynch will be participation in a panel called “Becky Lynch Disarms Us” on November 17th at the event. This upcoming panel was stated to be “WWE Superstar, trailblazer, and New York Times best-selling author Rebecca Quin will join us for a conversation about her recent memoir Becky Lynch: The Man: Not Your Average Average Girl. We’ll look back on her legendary career — from her early days grinding on the road to being in the first ever women’s match to main event WrestleMania — and just maybe get a glimpse at what The Man has in store for us next.”
College football team Iowa Hawkeyes recently announced that Big E will be the honorary captain for their game against Northwestern this Saturday. The University of Iowa is notable for being Big E’s alma mater.
As noted before, this past Tuesday’s NXT show featured Australian wrestler DELTA making her surprise official WWE debut under the new ring name of Zaria. Fightful Select’s Corey Brennan reported that his sources stated that WWE changing DELTA’s ring name was not a surprise to multiple people spoken to within the company. Those spoken to reportedly stated that the reason was due to WWE officials had expected difficulties to arise if they had tried to trademark the “DELTA” ring name.
WWE recently released a new episode for their Chamber of Horrors digital series on YouTube featuring Dominik Mysterio, Otis, and Karrion Kross as the guests.
WWE also recently released two new videos to their WWE Vault channel on YouTube. The first new video was a singles match of The Undertaker vs. CM Punk from WWE WrestleMania 29. The second new video was a marathon of “Extreme matches at WrestleMania.”
Cody Rhodes recently reached the milestone of 200 days as current Undisputed WWE Champion as of Thursday. Besides Rhodes, Roxanne Perez also recently reached the milestone of 200 days as current NXT Women’s Champion on Thursday as well.
WWE filed a new trademark for “Stephanie Vaquer” on October 23rd for wrestling and entertainment-related purposes to the United States Patent and Trademark Office.
In a recent interview with The Schmo, Rey Mysterio gave his thoughts about his reaction when Dominik Mysterio turned heel on him and Edge at WWE’s Clash at the Castle 2022 event. Mysterio stated “The moment he turned on myself and Edge. It’s a moment I don’t like to go back and remember, but the fact that he did what he did, he decided to take his own path, which I’m very understanding about. At the end of the day, don’t cross my path once again because I will whoop his ass.” (Transcript h/t: Fightful.com)
In a recent episode of the CarCast podcast, WWE Hall of Famer and co-host Bill Goldberg gave his thoughts about his appearance and interaction with Gunther at WWE’s Bad Blood 2024 event earlier this month in Atlanta, Georgia. Goldberg stated “I took Wanda and Gage to an event in Atlanta. I was in Atlanta for some business, filming a TV show. WWE extended an invitation and we came and experienced it. I don’t know how many live events I’ve actually experienced in that situation. It was cool. It was a great invite. Gage had a weekend off. I should have known. I should have known somebody was going to try and mess with me. In Atlanta, no less. We were having a great time. Gunther, I don’t want to make anything more of it than it was, but [groans]. You know me, I’m not going to sit there and let some dude talk shit. Period. End of story. What started out to be an innocent attendance of a pay-per-view turned out to being insulted by one of their current champions. I don’t care where we were, I would have done the same thing anywhere. It being Atlanta, my adopted hometown, I ain’t dead yet. As long as I’m breathing, don’t ever talk shit about me, especially my family. When he brought Gage into it and me being a dad, that was it. It was nothing more than that. Next question.” (Transcript h/t: Fightful.com)
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