Pop quiz: What’s got belts, gloves, and a chokehold on the entertainment industry? If you guessed TKO HoldingsTKO

, congratulations — you’re ready to rumble with one of the most unique business mashups out there. Founded in 2023 through a merger of WWE and UFC, this sports and entertainment behemoth is turning heads with strategic acquisitions and partnerships — and Wall Street can’t get enough.

Can you see me now? TKO’s stock has surged 77% in the past year, significantly outpacing the S&P 500’s 26% rise. This growth stemmed from increased sponsorships, live events, and ticket sales, driving combined revenue to $2.1B in Q3. Investor confidence also got a boost from a $2B share buyback program and a $75M quarterly dividend. But the real showstoppers are TKO’s recent acquisitions, which have cemented its appeal to fans and investors alike.

• Over the last year, TKO expanded its entertainment portfolio with a $3.25B all-equity deal to acquire IMG, On Location, and Professional Bull Riders (PBR) from Endeavor.
• The acquisition enhances the firm’s presence in premium sports, with PBR alone hosting over 200 annual events and reaching 285M+ households across 65+ territories.

Streaming Meets Suplex

TKO isn’t slowing down — the company is tackling declining viewership among younger audiences with exclusive and behind-the-scenes content. To further strengthen its position, the global sports powerhouse has secured a $5B, 10-year deal with Netflix for live weekly programming, aiming to expand its global reach and boost Netflix’s sports content. This partnership is expected to attract viewers in key markets like Brazil and India, potentially reversing WWE’s declining viewership by emulating the success of Netflix’s Formula 1: Drive to Survive.

• Netflix’s deal to stream WWE’s “Raw,” which began yesterday, taps into the league’s extensive social media presence with over 25M TikTok followers, outpacing the NBA (22.5M), NFL (14.8M), and MLB (7.6M).
• TKO President Mark Shapiro emphasizes the partnership’s relevance to today’s audiences, stating, “Watching a game in the old fashioned way just isn’t enough,” and underscores the demand for “super access” to favorite athletes.

High stakes, high praise: Pivotal Research Group’s Jeff Wlodarczak describes TKO as a “very rare asset,” citing its benefits from significant increases in media rights fees and heightened competition in traditional media. Meanwhile, analysts at Jefferies and Citi have reaffirmed their buy ratings, raising their price targets for TKO Group to $200 and $170, respectively. With untapped sponsorship opportunities at WWE and imminent UFC media rights renewals, only time will tell if TKO can knock out its competition.