TKO - Owning UFC and WWE could net you a FCF yield of 7-9%
Posted: Mar 31, 2024
- TKO Group is a sports and entertainment company that combines UFC and WWE. - On Sept 12, 2023, Endeavour and WWE combined to form TKO Group Holdings. - Dana White leads UFC, Nick Kahn leads WWE under TKO. - Revenue sources include media rights, live events, sponsorships, and product licensing. - Synergies between UFC and WWE to secure media rights and sponsorships. - Significant tailwinds in live sports and entertainment advertising. - Risks include WWE leadership uncertainty and potential competition for UFC. - Guidance for 2024: $1.15–1.17 billion EBITDA. - FCF yield between 7.90% to 9.12% based on estimates. - Goldman Sachs initiated coverage at a buy with a $102 price target. - TKO a good investment with dominant names in their industries.
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