TKO Group Holdings, a new sports and entertainment company created as a result of the union between the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment Inc (NYSE:WWE) has debuted on the New York Stock Exchange under the ticker symbol “TKO.”
Shares of TKO traded up 2.8% at US$103.50 shortly after noon on Tuesday.
UFC-owner Endeavor Group Holdings will hold a 51% controlling interest in the new company while existing WWE shareholders will hold a 49% interest, Endeavor said in a statement on Tuesday.
“The creation of TKO marks an exciting new chapter for UFC and World Wrestling Entertainment (WWE) as leaders in global sports and entertainment,” CEO of Endeavor and TKO Ariel Emanuel said in a statement.
“With UFC and WWE under one roof, we will provide unrivalled experiences for more than a billion passionate fans worldwide.”
Analysts at Jefferies view the combination of the UFC and WWE favorably in an environment where linear TV is losing market share to streaming and where there is high demand for live sports content.
“The upcoming rights expirations for both WWE and UFC present meaningful upside opportunities to the cash flows of both UFC and WWE in their own rights and will further drive earnings before interest, taxes, depreciation and amortization (EBITDA) margins in each franchise incrementally higher,” they wrote in a note to clients.
Contact the author at emily.jarvie@proactiveinvestors.com
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