TKO Group Holdings, Inc. has made significant moves in its capital return program, with 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 common stock. Additionally, the company has entered into a 10b5-1 trading plan for the repurchase of up to $174 million of its outstanding common stock and completed a privately negotiated transaction to repurchase approximately $26 million of its outstanding common stock.
The decision to repurchase $1 billion in shares reflects TKO's belief in the business and the intrinsic value of its stock. Mark Shapiro, President and COO of TKO, emphasized the company's commitment to a robust and sustainable capital return program, along with a focus on executing a balanced capital deployment strategy to deliver long-term value for shareholders.
Under the ASR agreement, TKO will pay $800 million to Morgan Stanley & Co. LLC and expects to receive an initial delivery of 3,161,430 shares of common stock. The total number of shares to be repurchased will be based on the volume-weighted average price of the common stock on specified dates during the term of the ASR agreement, with transactions expected to be completed in December 2025.
The repurchases contemplated under the 10b5-1 plan are set to commence once transactions under the ASR agreement are completed. TKO intends to fund the share repurchases with proceeds from a $1.0 billion first lien term loan borrowing that closed on September 15, 2025. As a result of these announcements, the company's shares have moved 1.73% on the market, and are now trading at a price of $205.94. If you want to know more, read the company's complete 8-K report here.
