TKO Group Holdings, Inc. (TKO)

A. Company Overview

TKO Group Holdings, Inc. is a leading premium sports and entertainment company that has established itself as a significant player in the global landscape of mixed martial arts (MMA), professional wrestling, and related entertainment sectors. The company was formed through the strategic merger of two impactful organizations, UFC (Ultimate Fighting Championship) and WWE (World Wrestling Entertainment), in September 2023. Building on this foundation, TKO further expanded its portfolio with the acquisition of IMG, On Location, and Professional Bull Riders (PBR) in February 2025, thus enhancing its operational capabilities across multiple sports and entertainment domains.

B. Business Structure and Core Properties

TKO encompasses several prominent brands within its operational structure:

• UFC: Recognized as the premier organization in mixed martial arts globally, UFC organizes more than 40 live events annually, reaching a substantial audience through various media distribution channels.
• WWE: As the foremost name in sports entertainment, WWE produces diverse content that includes weekly shows and major events, contributing significantly to TKO’s overall appeal and reach.
• PBR: The leading bull riding organization, PBR organizes over 200 events each year, further diversifying TKO’s live event offerings and capturing a unique audience segment.
• Zuffa Boxing: A joint venture focused on professional boxing promotion, aiming to establish a significant presence in the boxing industry.

Together, these properties act as conduits of engagement with a global fanbase, reaching over 1 billion households across 210 countries and territories.

C. Revenue Generation

TKO's financial framework is built upon four principal activities that contribute significantly to its revenue streams:

Media Rights, Production, and Content

A major chunk of TKO's revenue comes from the licensing of live events and original programming. Long-term agreements with distributors allow the company to monetize its broadcast content effectively. The integration of IMG bolsters TKO's ability to negotiate and manage media rights across a wide spectrum of sports content.

Live Events and Hospitality

The company produces numerous live events throughout the year, steadily attracting large audiences and generating significant ticket sales. TKO also offers premium hospitality experiences through On Location, enhancing its revenue from live events by providing curated packages for corporate clients and VIP guests.

Partnerships and Marketing

Effective partnerships with global brands enable TKO to generate substantial marketing and partnership revenue. The corporation has a history of collaborating with major brands across various industries, driving both product integration in its events and broader promotional campaigns.

Consumer Products Licensing

TKO licenses consumer products associated with its brands, generating revenue from merchandise such as apparel, video games, and toys. These licensing agreements with renowned retail partners provide an additional layer of income, while driving brand visibility and engagement through merchandise sales.

D. Fan Engagement and Audience Reach

The merger of UFC and WWE has created a comprehensive portfolio attractive to a wide array of demographics. TKO's properties boast a combined fanbase exceeding 1.4 billion globally, characterized by youthful and diverse audiences. As of December 31, 2025, UFC has 700 million fans, whereas WWE has a similar number, alongside substantial followings on social media channels.

E. Strategic Leadership

The success of TKO can be attributed to the extensive expertise of its management team. Ariel Emanuel serves as CEO and Executive Chair, with Mark Shapiro as President and COO. Their combined experience within the sports and entertainment sectors, particularly with their involvement in the acquisition and strategic growth of UFC, positions TKO well for future opportunities.

F. Competitive Advantages

TKO's structure provides unique operational advantages that distinguish it within the competitive landscape of sports and entertainment. These include:

• A unified governance structure that facilitates swift decision-making and responsiveness to market demands.
• Control over intellectual properties predominantly without franchise constraints typical to traditional team sports.
• The operational agility to adapt venues, schedules, and event types based on consumer preferences.

G. Growth Vectors

The organization is poised for substantial growth, leveraging several vectors:

• Increased global distribution capabilities for media consumption.
• Expanded live event programming to attract larger audiences in key markets.
• Development of innovative partnership and licensing arrangements to boost consumer products.