TKO Group Holdings, Inc. (NYSE: TKO)

TKO is a premium sports and entertainment company. It owns the Ultimate Fighting Championship (UFC), World Wrestling Entertainment (WWE), Professional Bull Riders (PBR) and holds a joint venture interest in Zuffa Boxing. Through the acquisition of IMG and On Location, TKO also operates a global sports marketing agency and a premium experiential hospitality provider. The company stages more than 500 live events each year, distributes media rights to broadcasters worldwide and offers hospitality packages for major sporting and entertainment spectacles.

TKO generates revenue from 4 principal activities. Media rights, production and content includes licensing live events and original programming to domestic and international broadcasters and distributing sports programming on behalf of third party rights holders. Live events and hospitality derives income from ticket sales, site fees, VIP packages and the provision of curated travel and accommodation experiences via On Location. Partnerships and marketing comes from the sale of in venue and in broadcast advertising, brand integration, digital impressions and sponsorship fees earned by IMG. Consumer products licensing consists of royalties and license fees from branded merchandise, video games, apparel and related goods sold through retail and e commerce channels.

The company operates through the following segments:

• Media rights, production and content: This segment licenses live events and original programming to broadcasters and distributors, produces short and long form filmed entertainment and acts as a global distributor of sports programming on behalf of leagues, federations and events.

• Live events and hospitality: This segment promotes and stages UFC, WWE and PBR events, sells tickets and hospitality packages, collects site fees and provides premium experiential services through On Location for events such as the Olympics, FIFA World Cup and Super Bowl.

• Partnerships and marketing: This segment sells in venue and in broadcast advertising, secures brand integration opportunities, delivers digital impressions and generates sponsorship and consulting fees for clients including major sports leagues and corporate brands via IMG’s global sales network.

• Consumer products licensing: This segment licenses UFC, WWE and PBR trademarks to manufacturers of video games, apparel, equipment, trading cards and toys, collects royalties and license fees and oversees direct to consumer sales through partnerships with retailers such as Walmart, Target and Fanatics.

TKO holds a distinctive position in the sports and entertainment landscape by combining owned intellectual property with global media distribution and experiential hospitality capabilities. Its portfolio of UFC, WWE and PBR provides exclusive live event content that competitors such as Bellator MMA, ONE Championship and All Elite Wrestling cannot match. Compared with traditional sports marketing agencies like WME and CAA, TKO’s internal control over content production and rights enables quicker decision making and more consistent brand integration. The company’s ability to offer end to end solutions from content creation to ticketed hospitality gives it a competitive edge over firms that specialize in only one of these areas.

TKO serves a diverse customer base that includes sports fans, media distributors, corporate sponsors and hospitality clients. Its media rights partners comprise Paramount, Disney’s ESPN, Netflix, Versant, the CW, Rogers Sportsnet, WBDSports and DAZN. The company has marketing alliances with brands such as Meta, Ram Trucks, Anheuser Busch, IBM, Procter & Gamble, Monster Energy, Cuervo, Total Wireless, Wingstop and Slim Jim. Through IMG, TKO works with sports entities including the English Premier League, Major League Soccer, the R&A, Wimbledon, the DP World Tour, the ATP and WTA Tours, the National Football League, CONMEBOL, Euroleague Basketball and the Saudi Pro League. On Location provides official ticket and experience packages for events like the Olympic Games, FIFA World Cup, Super Bowl and NCAA Final Four.