NFLX - Why TKO Group Stock Popped 12.8% This Week
2024-01-25 19:30:00 ET
Shares of TKO Group (NYSE: TKO) are up 12.8% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence . The parent company of World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) announced a lucrative new long-term deal with Netflix (NASDAQ: NFLX) for its WWE Monday Night Raw program.
In a press release on Tuesday, TKO Group announced that starting in 2025, Netflix will become the exclusive new home of its flagship WWE Raw program in the U.S., Canada, U.K., and Latin America. Additional countries and regions will be added over time. Netflix will also house all WWE shows and specials outside the U.S., including SmackDown and NXT , as well as its premium live events such as WrestleMania , SummerSlam , and Royal Rumble .
The news was particularly exciting for investors, however, because Netflix has agreed to pay WWE around $500 million annually for the next decade. That's good for a total of over $5 billion. By contrast, WWE's current five-year contract with Comcast 's NBCUniversal is reportedly worth between $250 million and $260 million per year.
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Why TKO Group Stock Popped 12.8% This Week