EDR - Why TKO Group Holdings Stock Surged 5% Higher Today
2024-04-02 17:39:00 ET
A go-private deal for its majority shareholder gave TKO Group Holdings (NYSE: TKO) a lift on Tuesday. That made the stock something of a standout on a gloomy market -- it closed the day more than 5% higher, against the 0.7% decline of the benchmark S&P 500 index.
TKO, whose core assets are World Wrestling Entertainment (WWE) and the United Fighting Championship (UFC), is 51% owned by entertainment conglomerate Endeavor Group Holdings (NYSE: EDR) .
Well, at least for the moment. Tuesday morning Endeavor announced that it has agreed to be acquired by private equity firm Silver Lake. The purchase price is $27.50 per share, which is to be paid entirely in cash. That figure represents a 55% premium to Endeavor's closing stock price on Oct. 25, 2023. This was the last trading day before Endeavor formally announced the launch of a review of strategic alternatives for its business.
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Why TKO Group Holdings Stock Surged 5% Higher Today