Based on the press release, TKO Group Holdings, Inc. has provided unaudited pro forma condensed combined financial information in connection with the Transaction Agreement entered into by the TKO Parties, EDR Parties, and TWI. The transaction involves TKO acquiring the IMG Media business, Professional Bull Riders (PBR) Business, On Location (OLE) Business, Mailman, and various events businesses, including Golf Events, Formula Drift, and International Figure Skating, for a total consideration of $3.25 billion.
The unaudited pro forma condensed combined financial statements of TKO PubCo after giving effect to the proposed Transaction indicate significant changes in various financial metrics when compared to historical data.
As of September 30, 2024, the pro forma combined balance sheet reflects total assets of $15.21 billion, which is a substantial increase from the historical combined total assets of $12.77 billion. Notably, the transaction accounting adjustments have resulted in changes in several asset categories, including cash and cash equivalents, restricted cash, accounts receivable, deferred costs, other current assets, property, buildings and equipment, intangible assets, finance lease right-of-use assets, operating lease right-of-use assets, goodwill, investments, deferred income taxes, and other assets.
Moreover, the pro forma combined statement of operations for the nine months ended September 30, 2024, demonstrates a significant shift in revenue generation. The pro forma combined revenue for this period amounts to $3.96 billion, compared to the historical combined revenue of $2.16 billion for TKO PubCo and $1.85 billion for Olympus. Additionally, the operating expenses have also been impacted by the transaction accounting adjustments, leading to changes in direct operating costs, selling, general and administrative expenses, depreciation and amortization, and impairment charges.
The net loss attributable to TKO Group Holdings, Inc. / Olympus' parent for the nine months ended September 30, 2024, has been adjusted to reflect a change of $93.03 million, compared to the historical combined net loss of $146.95 million for TKO PubCo and Olympus.
Similarly, for the year ended December 31, 2023, the pro forma combined revenue amounts to $3.22 billion, reflecting a significant increase from the historical combined revenue of $1.67 billion for TKO PubCo and $1.57 billion for Olympus. Notably, the operating expenses, including direct operating costs, selling, general and administrative expenses, depreciation and amortization, and impairment charges, have all been impacted by the transaction accounting adjustments.
Today the company's shares have moved -1.1% to a price of $141.92. For the full picture, make sure to review TKO's 8-K report.
