7. TKO Group Holdings Inc. (NYSE:TKO)
Number of Hedge Fund Holders: 54
TKO Group Holdings Inc. (NYSE:TKO) is a prominent sports and entertainment company formed in September 2023 through the merger of World Wrestling Entertainment (WWE) and Zuffa, the parent company of Ultimate Fighting Championship (UFC). This merger marked the first time WWE was not majority-controlled by the McMahon family, who had owned it for over 70 years. TKO operates iconic brands such as UFC, WWE, and Professional Bull Riders, reaching over 210 countries and territories and organizing more than 500 live events annually, attracting over three million fans. The company’s revenue streams include media rights, live events, sponsorships, and consumer product licensing.
TKO Group Holdings Inc. (NYSE:TKO) delivered record financial performance in their first full year as a public company, generating revenue of $2.804 billion and adjusted EBITDA of $1.251 billion, exceeding their revised guidance. The integration of UFC and WWE proved successful, driving greater efficiency and exceeding guided net savings of $100 million. The company strengthened its media rights portfolio through significant partnerships, notably moving WWE Raw to Netflix, which provides access to 300 million subscribers globally.
Both UFC and WWE achieved record-breaking years in live events, with UFC delivering 10 all-time highest grossing event records and WWE setting revenue records at 10 premium live events. Global brand partnerships showed strong growth, with UFC sponsorship revenue increasing 28% and WWE setting an all-time high with 20% year-over-year growth. Looking ahead, the company is focused on domestic rights renewals for UFC and WWE’s premium live events as their highest priority, while also expecting to close acquisitions of IMG, On Location and PBR in the first quarter to expand their global sports portfolio. For 2025, TKO Group Holdings Inc. (NYSE:TKO) is targeting revenue of $2.93 billion to $3.0 billion and adjusted EBITDA of $1.35 billion to $1.39 billion, which is further reinforced by insider buying in the last six months.
