NEW YORK, NY / ACCESSWIRE / October 30, 2024 / Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating TKO Group Holdings, Inc. (NYSE:TKO) ("TKO" or the "Company"), its Board of Directors, and their controlling stockholder, for potential breaches of fiduciary duty.
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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 designated a majority of directors to the Company's Board 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 minority shareholders will be unable to vote on the transaction, as Endeavor has approved the Acquisition by written consent without a minority shareholder vote.
Wolf Haldenstein believes that the Acquisition is a conflicted transaction that may have resulted in the Company overpaying for Endeavor's businesses. Specifically, upon announcement of the Acquisition, TKO's stock price fell by more than 5% and likely would have fallen further had TKO not simultaneously announced a $2 billion stock repurchase program.
Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly lauded by the courts, which have appointed it to major positions in complex securities, multi-district and consolidated litigation.
If you wish to discuss this investigation or have any questions regarding your rights and interests, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE: Wolf Haldenstein Adler Freeman and Herz LLP
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