In a recent filing with the Securities and Exchange Commission, TKO Group Holdings, Inc. (NYSE:TKO) reported significant stock purchases by Silver Lake, a private equity firm. The transactions, disclosed on December 18, 2024, show that Silver Lake acquired a substantial amount of TKO’s Class A Common Stock, totaling approximately $77.4 million. The timing appears strategic, as InvestingPro data shows TKO has delivered an impressive 80.5% return year-to-date, with the stock trading near its 52-week high of $149.40.
The purchases occurred over two days, December 16 and 17, with Silver Lake acquiring shares at prices ranging from $143.35 to $148.97 per share. This acquisition was carried out by entities associated with Silver Lake, including Silver Lake West HoldCo, L.P. and Silver Lake West HoldCo II, L.P., with Egon Durban, a director at TKO and Co-CEO of Silver Lake Group, playing a key role as a managing member. According to InvestingPro analysis, TKO maintains a GOOD financial health score, with liquid assets exceeding short-term obligations.
The transactions highlight Silver Lake’s ongoing investment in TKO Group Holdings, further solidifying its position as a major shareholder. As of the latest filing, Silver Lake entities hold a significant number of shares through indirect ownership by Endeavor Operating Company, LLC. The company, now valued at $24.37 billion in market capitalization, has attracted significant institutional interest despite technical indicators suggesting overbought conditions.
In other recent news, TKO Group Holdings has seen significant developments in its financial and strategic initiatives. Citi maintained a Buy rating on TKO Group Holdings and increased the stock’s price target from $137.00 to $170.00, due to an updated forecast for the Ultimate Fighting Championship (UFC) rights. BofA Securities also maintained a Buy rating and increased TKO’s price target to $165, while Benchmark downgraded TKO shares from Buy to Hold due to potential growth dilution concerns.
TKO Group Holdings has secured a $2.25 billion loan facility and made strides in its financial initiatives with a $2.75 billion term loan. Additionally, the company has settled a consolidated class-action antitrust lawsuit for $375 million. The company’s revenue stands at $2.78 billion, with an EBITDA of $655.7 million.
TKO Group Holdings has also recently acquired Professional Bull Riders, On Location, and IMG from Endeavor in an all-equity deal valued at $3.25 billion. This acquisition is expected to enhance TKO’s portfolio and contribute to its revenue streams. These are the recent developments for TKO Group Holdings.
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