The newly merged company of Ultimate Fighting Championship and World Wrestling Entertainment has been named TKO. This name was chosen to honor the companies’ expertise in fighting, but TKO has ambitions beyond combat sports ownership.
TKO began trading on the New York Stock Exchange on Tuesday, following the merger between the two entertainment giants. The company is majority-owned (51%) by Endeavor Group Holdings, which also owns UFC and Hollywood talent agency WME, and 49% is owned by WWE shareholders.
Shares of TKO rose 2.4% on Tuesday.
The first 18 months of TKO’s existence will focus on integrating UFC and WWE, according to Mark Shapiro, TKO’s president and COO. This includes plans to pursue international media rights together and consolidate production efforts and back offices.
After this integration phase, TKO intends to seek acquisitions to expand its business. Shapiro stated, “We will ultimately be in the marketplace looking for other sports properties that we can add to the flywheel enhanced by Endeavor.” TKO also has a strong desire to grow internationally.
In addition to UFC and WWE, Endeavor owns other sports properties such as Professional Bull Riders and two tennis tournaments. The company leverages its expertise in representing professional athletes through WME, negotiating media rights, product licensing, and enhancing live events to increase venue fees. TKO also plans to explore direct-to-consumer options that do not currently exist.
TKO’s current streaming deal for WWE content is with NBCUniversal’s Peacock, which runs until 2026. However, Shapiro mentioned that other streaming platforms have already expressed interest in bidding for the rights once the deal concludes.
In the near future, TKO executives will also negotiate new media deals for WWE programming on traditional pay TV, currently owned by NBCUniversal and Fox.
Who runs TKO?
Vince McMahon, 78, serves as the executive chairman of TKO, while Ari Emanuel is the CEO. Shapiro emphasized that Emanuel will be the company’s leader, stating, “Ari Emanuel is running the company. Vince will play a role, but the CEO position belongs to Ari. It is not a shared position.”
McMahon, with over 40 years of experience running WWE, is known for his strong personality both on-screen and off-screen. However, he has recently faced legal issues related to allegations of sexual misconduct. Shapiro compared Emanuel’s ability to lead alongside a sports league co-founder with a controversial past, citing Dana White, president of UFC.
Emanuel has already proven his leadership abilities, and TKO is confident in his capability to run the company. TKO recognizes McMahon’s experience and influence but acknowledges that the CEO role belongs to Emanuel.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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