NFLX - Here's Why Netflix's Deal With TKO Is a Game-Changer for Both Stocks
2024-01-28 12:17:00 ET
Last week, Netflix (NASDAQ: NFLX) made its first big move into live event programming by striking a deal with TKO Group Holdings (NYSE: TKO) for its subsidiary WWE's Raw distribution rights. The reported 10-year, $5 billion-plus agreement will bring the popular weekly professional wrestling show to the streaming giant in January 2025.
The move, providing WWE access to a broader audience, is a significant step for Netflix, which is behind its competitors Amazon , Apple , and Walt Disney in programming live sports. So, let's look at the deal's reported specifics and what it means for both Netflix and TKO.
The partnership is a little more complicated than the headline suggests. That's because the deal doesn't lay out specific dollar amounts for each year, only that the fee will be in excess of $5 billion over 10 years. That could change, however, as Netflix has the option after the first five years to cancel the agreement -- or extend it for an additional 10 years in 2035.
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Here's Why Netflix's Deal With TKO Is a Game-Changer for Both Stocks