Doubled Dividends Announced by TKO Group
TKO Group Holdings Announces Major Expansion and Dividend Increase
In a significant move, TKO Group Holdings, the parent company behind UFC and WWE, has announced a series of key developments.
Firstly, TKO has concurrently launched a potential upsize of its existing credit facility by up to $1.0 billion, subject to market conditions and customary closing conditions. This move is aimed at supporting the company's growth ambitions.
In a statement, Mark Shapiro, President and COO of TKO, expressed pride in doubling TKO's quarterly cash dividend. The company has indeed authorized a doubling of its quarterly cash dividend, with holders of TKO's Class A common stock now receiving a quarterly dividend of 76 cents per share, effective from Sept. 30, 20XX. The deadline for Class A common stockholders to be of record to receive the dividend is Sept. 15, 20XX.
The new dividend program will distribute approximately $150 million to TKO's Class A common stockholders, representing a 100% increase over the prior program, which was 38 cents per share.
TKO Group Holdings also revealed quarterly earnings that showed substantial growth in both live events and partnerships, two core areas.
In another significant development, TKO has entered a blockbuster $1.6 billion deal with ESPN for the U.S. rights to its WWE premium live events. This deal marks the departure of WWE's Premium Live Events from Peacock earlier than expected.
Mark Shapiro, who was announced as President and CEO of TKO Group Holdings in August 2023 during the formation of the new sports and sports entertainment company combining UFC and WWE, emphasized that TKO intends to fund quarterly dividends with cash flow from operations and/or cash on hand. The increased dividend, together with TKO's share repurchase program, reflects TKO's ongoing commitment to a robust capital return strategy and delivering sustainable long-term value for its shareholders.
However, no new information about Ilona Maher joining WWE is provided in these announcements.
