WWE Parent Company Repurchases $1 Billion In Shares

TKO, the parent company of WWE and the UFC, announced through a press release this morning that it intends to buy back about $1 billion dollars of its public stock. The company will do so through a process known as an accelerated share repurchase agreement, as well as a "10b5-1 trading plan" and a private transaction. The stock buyback is part of a $2 billion plan announced by the company last year.

In the press release, TKO President Mark Shapiro indicated that the move shows that the company is confident in its future profitability, with the obvious implication that TKO believes the stock it's buying back now will be worth much more down the line. It could also give the company more room to sell stock to other interested parties, potentially taking TKO private. A move to take TKO's parent company, Endeavor, private was completed earlier this year, with private equity firm Silver Take taking control.

Shapiro also noted that the company recently increased its quarterly cash dividend program by 100%. Earlier this month, TKO announced that its shareholders will receive a quarterly cash dividend of $0.76 per share.

TKO was initially formed in September 2023, once the merger between WWE and the UFC officially closed. A number of significant changes have been made in the two years since, including the departure of Vince McMahon, the elevation of Dwayne "The Rock" Johnson to the Board of Directors, and Paul "Triple H" Levesque becoming solidified as the creative lead in WWE.