Vince McMahon is selling a sizable amount of his Class A shares of TKO stock with Endeavor set to re-purchase a portion of it.
TKO issued the following statement on the matter:
TKO Group Holdings, Inc. (NYSE: TKO) (“TKO” or the “Company”), a premium sports and entertainment company, today announced that one of its stockholders, Mr. Vincent K. McMahon (the “Selling Stockholder”), intends to offer for sale in an underwritten secondary offering 8,400,000 shares of the Company’s Class A common stock, par value $0.00001 (the “Class A Common Stock”), pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”), of which the Company intends to repurchase from the underwriter approximately $100.0 million of shares of our Class A Common Stock. The Selling Stockholder will receive all of the net proceeds from this offering. No shares are being sold by the Company. In connection with the offering, Ariel Emanuel, the Company’s Chief Executive Officer and director, Mark Shapiro, the Company’s President, Chief Operating Officer and director, and certain other of the Company’s directors have indicated an interest in purchasing up to $1.0 million, $1.0 million and $850.0 thousand, respectively, of the Company’s Class A Common Stock offered in the offering at the public offering price.
McMahon had approximately 28 million shares of Class A common stock with this sale of shares representing approximately 30% of his shares with the sellable stock worth approximately $713 million.
Last month Ari Emanuel named the market’s anticipation that Vince would use his stock-selling rights among the reasons TKO shares were down: https://t.co/jsNmccHsCJ
— Brandon Thurston (@BrandonThurston) November 10, 2023
Endeavor, which controls 51% of TKO, is set to buy back $100 million worth of the shares being sold by McMahon.
Following the announcement of McMahon’s stock being sold, the TKO stock dropped 5% after the closing bell on Thursday.
McMahon had gone on medical leave this past July after spinal surgery. He recently travelled to Saudi Arabia along with Mark Calaway a.k.a. The Undertaker as representatives of TKO at the boxing fight between Tyson Fury and Francis Ngannou.
