TKO Group Holdings, Inc. has made significant moves in its capital return program, announcing a plan to repurchase a total of $1 billion in shares. This includes an accelerated share repurchase (ASR) agreement to repurchase $800 million of its outstanding Class A common stock. Additionally, the company has entered into a 10b5-1 trading plan for the repurchase of up to $174 million of its outstanding Class A common stock and completed a $26 million privately negotiated transaction on September 5, 2025.
The ASR agreement, scheduled for completion in December 2025, will see the company pay $800 million to Morgan Stanley & Co. LLC and receive an initial delivery of 3,161,430 shares of Class A common stock. The total number of shares to be repurchased under the ASR agreement will be based on the volume-weighted average price of Class A common stock on specified dates during the term of the agreement.
These repurchases are part of TKO's previously announced $2.0 billion share repurchase authorization. The company has indicated its intention to fund the share repurchases with proceeds from a $1.0 billion first lien term loan borrowing that closed on September 15, 2025.
Mark Shapiro, President and COO of TKO, highlighted the company's commitment to a robust and sustainable capital return program, emphasizing their focus on executing a balanced capital deployment strategy to deliver long-term value for shareholders.
In addition to the share repurchase program, TKO recently announced a 100% increase to its quarterly cash dividend program, further demonstrating its dedication to returning capital to shareholders.
These moves reflect TKO's confidence in the business and the intrinsic value of its stock, signaling a strong commitment to creating value for its shareholders in the long term. Today the company's shares have moved 0.1% to a price of $202.44. For more information, read the company's full 8-K submission here.
