Endeavor to Sell TKO Group IMG, Professional Bull Riders and On Location for $3.25 Billion

• Endeavor Group is selling three sports-related businesses to TKO Group for $3.25 billion.
• TKO's ownership in Endeavor will increase to 59% through a stock deal.
• The three businesses are Professional Bull Riders, On Location and IMG.

The company that owns WWE and UFC is expanding into sports-adjacent properties by acquiring three businesses for $3.25 billion from its controlling owner.

The companies announced on Thursday that the businesses involved in the deal are Professional Bull Riders, On Location, and IMG. The deal is an all-stock transaction, and Endeavor's ownership in TKO will increase from 53% to 59%.

TKO's strategic ambitions are being broadened beyond league operation with the acquisition of the world's largest bull riding league, PBR, as well as expansion into luxury hospitality and media rights consultancy through IMG.

"Mark Shapiro, president and chief operating officer of Endeavor and TKO, stated in an interview that sports unify people and are currently in high demand. At TKO, their main focus is on league ownership if it exists, as well as businesses that can support the current sports ecosystem, such as ticket sales, hospitality, consumer products, and media rights expertise. This is what they are acquiring through IMG and On Location."

Earlier this year, Silver Lake declared its plans to make Endeavor private. As part of the deal, Silver Lake intended to sell certain assets, according to Shapiro. Endeavor presented a proposal to the TKO board to sell three businesses. TKO established a special committee to analyze the transaction, which ultimately recommended it to the board, Shapiro stated.

PBR CEO and Commissioner Sean Gleason will continue to lead the organization, TKO said in a statement. PBR hosts more than 200 events annually for over 1 million fans.

Major sporting events such as the Super Bowl, Ryder Cup, March Madness, FIFA World Cup, and Olympics are catered to with luxury hospitality by On Location.

IMG offers media rights and brand partnerships, as well as strategic consultancy on major TV deals for various sports leagues, including the NFL, English Premier League, National Hockey League, Major League Soccer, UFC, WWE, and PBR. However, 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, as stated in the TKO statement.

TKO announced an annual dividend of $300 million and authorized a share buyback program of up to $2 billion for its Class A common stock, in addition to the transaction.