TKO Group Holdings announced that it has finished an accelerated share repurchase agreement that bought back $800 million of its Class A common stock and has begun a $174 million 10(b)(5)(1) trading plan. The ASR was funded with a payment to Morgan Stanley on September 16 2025, and the final settlement of 1,053,960 shares was completed on November 17 2025, bringing the total repurchased shares to 4,215,390.
TKO’s share‑repurchase program, authorized for $2 billion, has now been used for $974 million of buybacks. The 4,215,390 shares represent roughly 2.3 % of the company’s outstanding shares, a reduction that is expected to lift earnings per share by about 1.5 %. The company’s management explained that the buyback is part of a disciplined capital‑allocation strategy designed to return excess cash to shareholders while maintaining flexibility for future investments.
Mark Shapiro, President and COO, said, “We remain focused on deploying capital to deliver long‑term value for our shareholders. Our commitment to a robust and sustainable capital return program is a key tenet of our strategy. The completion of the ASR and the launch of the 10(b)(5)(1) plan reflect our confidence in the intrinsic value of our stock.” The statement underscores the company’s belief that its cash flow generation is strong enough to support both share repurchases and ongoing strategic initiatives.
The market reacted positively to the announcement. Analysts noted that the buyback confirms TKO’s ability to generate excess liquidity and signals confidence in its long‑term prospects. The 10(b)(5)(1) plan, which will run until February 26 2026, provides a systematic framework for future repurchases, reducing the risk of insider‑trading concerns and allowing the company to take advantage of market conditions.
TKO’s balance sheet remains robust, with cash and cash equivalents sufficient to fund the current buyback tranche and support its quarterly dividend program. The company’s recent earnings reports show strong revenue growth and improving adjusted EBITDA, indicating that the capital return program is being financed from healthy operating cash flow rather than debt.
By completing the ASR and initiating the 10(b)(5)(1) plan, TKO demonstrates a clear commitment to shareholder value while preserving the financial flexibility needed to pursue strategic investments in its sports and entertainment portfolio. The move is expected to reinforce investor confidence and support the company’s long‑term growth trajectory.
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