MONSEY, New York, Nov. 26, 2024 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating the directors and controlling shareholders of TKO Group Holdings, Inc. (NYSE: TKO) (“TKO”) for breaches of fiduciary duty under Delaware law in connection with the sale of certain assets to TKO by its controlling shareholders, Silver Lake and Endeavor Group Holdings, Inc. (“Endeavor”). To learn more about the investigation or how to contact us, please see below.
Why is there an investigation?
Silver Lake presently controls Endeavor by virtue of owning 74.3% of Endeavor’s voting common stock. In turn, through Endeavor, Silver Lake also controls TKO by virtue of Endeavor owning 53.6% of TKO’s voting common stock.
Additionally, a majority of the members of TKO’s current board of directors were appointed by Endeavor.
On April 2, 2024, Endeavor announced that Silver Lake had agreed to buy the remaining common shares of Endeavor that Silver Lake does not already own for $27.50 a share in cash in a deal valued at $13 billion.
On October 24, 2024, TKO announced that it had agreed to acquire the following businesses (“Businesses”) from Endeavor in exchange for $3.25 billion in TKO stock: Professional Bull Riders (a bull riding league), On Location (a provider of experiences for fans attending sporting events), and IMG (a distributor of sports content, media rights, and brand partnerships).
Upon completion of the sale of the Businesses to TKO, Endeavor’s ownership of TKO will increase to 59%.
“Given the control that Silver Lake and Endeavor exercise over TKO, we are investigating whether TKO’s acquisition of the Businesses from Endeavor is a conflicted transaction,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes whether TKO is overpaying Endeavor for the Businesses in order to help Silver Lake finance its pending take-private acquisition of Endeavor.”
How to contact us
If you are a TKO shareholder and have questions about your legal rights in connection with our investigation, please contact us at the following link to discuss your options at no charge:
https://wohlfruchter.com/cases/tko-group-holdings/
Alternatively, you may contact us by phone at 866-833-6245, or via email at alerts@wohlfruchter.com.
About Wohl & Fruchter
Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
www.wohlfruchter.com
