Core Viewpoint - Bleichmar Fonti & Auld LLP is investigating TKO Group Holdings, Inc. for potential breaches of fiduciary duty related to a recent acquisition deal with its controlling stockholder, Endeavor Group Holdings, Inc. [1][4] Group 1: Company Control and Transactions - Endeavor Group Holdings controls TKO Group Holdings with a 53.6% voting power, allowing it to influence corporate actions and engage in conflicted transactions [2] - TKO announced an agreement to acquire Professional Bull Riders, On Location, and IMG businesses from Endeavor for $3.25 billion in company stock, increasing Endeavor's ownership stake in TKO to approximately 59% [3] - The acquisition was approved by Endeavor without a minority vote, leaving minority shareholders without a say in the transaction [3] Group 2: Market Reaction and Legal Implications - Following the acquisition announcement, TKO's stock price fell by over 5%, indicating market concerns about the deal, which may have led to overpayment for Endeavor's businesses [4] - Bleichmar Fonti & Auld LLP believes that minority shareholders may have valid claims for breach of fiduciary duty against TKO's board of directors and/or Endeavor due to the nature of the acquisition [4]
BFA Law is Investigating TKO GROUP HOLDINGS for Breaches of Fiduciary Duties after Acquisition Announcement; Current Shareholders Urged to Contact the Firm (NYSE:TKO)