Patrick Whitesell, Executive Chairman of Endeavor Group Holdings, Inc. (NYSE:EDR), has made significant acquisitions of TKO Group Holdings, Inc. (NYSE:TKO) Class A common stock. The timing is notable as TKO trades near its 52-week high of $149.40, having gained over 35% in the past six months. According to the latest SEC filings, Whitesell purchased shares totaling approximately $50.3 million over several transactions.
The purchases were executed through Endeavor Operating Company, LLC, as part of a pre-established trading plan. The transactions took place between January 17 and January 22, 2025, with prices ranging from $142.57 to $146.13 per share. As a result of these acquisitions, the shares owned by Endeavor Operating Company increased to 1,031,804. InvestingPro data shows TKO commands a market capitalization of $24.46 billion, with analysts maintaining a bullish outlook on the stock.
These transactions underscore Endeavor's continued investment in TKO Group Holdings, further solidifying its stake in the company. Whitesell, who is a ten percent owner, conducted these transactions indirectly through Endeavor Operating Company, LLC, and disclaims beneficial ownership except for his pecuniary interest. According to InvestingPro, analysts expect TKO to become profitable this year, with 12 additional exclusive insights available to subscribers.
In other recent news, TKO Group Holdings has seen significant developments. The company secured a $2.25 billion loan facility and made strides in financial initiatives with a $2.75 billion term loan. Furthermore, TKO acquired Professional Bull Riders, On Location, and IMG from Endeavor in an all-equity deal valued at $3.25 billion. Analysts from BofA Securities and Citi have maintained a Buy rating on TKO, despite Benchmark downgrading TKO shares from Buy to Hold due to potential growth dilution concerns. TKO also agreed to a $375 million settlement in a consolidated class-action antitrust lawsuit.
In parallel, former WWE CEO Vince McMahon has settled charges with the SEC for undisclosed agreements that bypassed WWE's system of internal accounting controls, leading to material misstatements in WWE’s 2018 and 2021 financial statements. These undisclosed agreements resulted in WWE overstating its 2018 net income by approximately 8 percent and its 2021 net income by approximately 1.7 percent. McMahon has agreed to pay a $400,000 civil penalty and reimburse WWE $1,330,915.90 under Section 304(a) of the Sarbanes-Oxley Act.
These are the recent developments for both TKO Group Holdings and WWE.
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