TKO Shares Dive Following WWE ‘Smackdown’ Transition from Fox to USA Network in Significant 5-Year Contract.
After publicizing a pivotal five-year domestic broadcast rights collaboration with NBCUniversal, which will bring the acclaimed wrestling show ‘Smackdown’ back to the USA Network in October 2024, TKO’s shares experienced a notable 12% drop during Thursday’s trading. TKO’s Initial Public Offering TKO made its stock market debut on September 12.
- Following the disclosure of the agreement, reportedly worth an impressive $1.4 billion (averaging roughly $287 million annually per CNBC), TKO’s stock value took a hit.
- The stock hit a low at $84.86 per share on Thursday, a significant drop from its consistent trading value of about $104 during the week.
- Barely over a week ago, TKO made its entry to the public market with an opening share price of $102. This coincided with the formalization of the merger of World Wrestling Entertainment and Endeavor’s Ultimate Fighting Championship.
- The partnership will also feature four annual primetime specials on NBC, set to commence in the 2024/2025 broadcast season.
Since 2019, the Smackdown show had been a part of Fox, thanks to a substantial five-year agreement worth $1 billion. Before this association, the renowned wrestling show had been a fixture on USA Network from 2016 to 2019. It’s worth noting that WWE owns Smackdown, and it recently sealed its merger with the UFC in a colossal deal estimated at $21.4 billion. The UFC represents a significant portion of this valuation, contributing to over half, as reported by Variety.
WHAT’S ON THE HORIZON
Although ‘Raw’, WWE’s sister show to ‘Smackdown‘ on the USA Network, isn’t included in this recent deal, there’s increasing buzz around a potential new broadcast agreement for this top-tier show. Industry insiders hint at significant interest from various corporate entities vying for ‘Raw’.
