Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TKO Group Holdings, Inc. (NYSE: TKO), the board of directors, and the controlling stockholder for potential breaches of fiduciary duty.
If you are a holder of TKO Group Holdings, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc.
Investigation Details:
TKO is controlled by Endeavor Group Holdings, Inc. (“Endeavor”) through its ownership of 53.6% of the total voting power of the Company’s voting stock. Endeavor has also designated a majority of directors to the board of directors of TKO. As a result of its control, Endeavor can influence TKO to engage in conflicted transactions and control the outcome of TKO’s corporate actions that typically would require shareholder approval.
On October 24, 2024, TKO announced that it had entered into a transaction agreement with Endeavor Operating Company, LLC, a subsidiary of Endeavor, pursuant to which TKO agreed to acquire the Professional Bull Riders, On Location and IMG businesses from Endeavor for $3.25 billion in Company stock (the “Acquisition”). As a result of the Acquisition, Endeavor will increase its ownership stake in TKO from approximately 53% to 59%. The transaction is expected to close in the first half of 2025. Minority shareholders will have no say in the Acquisition, as Endeavor has approved the Acquisition by written consent without a minority vote.
BFA believes that the Acquisition is a conflicted transaction that may have resulted in the Company overpaying for Endeavor’s businesses. Upon announcement of the Acquisition, TKO’s stock price fell by more than 8% and likely would have fallen further had TKO not simultaneously announced a $2 billion stock repurchase program. The decline in TKO’s stock price strongly suggests that public markets believe the Company may have overpaid for the Endeavor assets as part of the Acquisition. Given Endeavor’s control over TKO, BFA believes TKO minority stockholders may possess valid claims for breach of fiduciary duty against the board of directors of TKO and/or Endeavor.
Click here if you are a holder of TKO Group Holdings: https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc.
What Can You Do?
If you are a current holder of TKO Group Holdings stock, you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/tko-group-holdings-inc
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Contacts
Ross Shikowitz
ross@bfalaw.com
212-789-3619
