Core Insights - Rupert Murdoch's News Corp. is launching a West Coast version of the New York Post, named The California Post, in early 2026, marking a significant moment in Murdoch's long career [2] - David Ellison, CEO of Paramount Skydance, is positioning himself as a major media consolidator with a $108 billion bid for Warner Bros. Discovery (WBD), reflecting a modern approach to media empire building similar to Murdoch's [3][5] Group 1: David Ellison's Media Strategy - Ellison's aggressive deal-making includes a recent $8.4 billion merger of Paramount and Skydance, and he has made significant moves in Hollywood, such as acquiring creators from Netflix and securing UFC broadcasting rights [4][5] - The competition between Paramount and Netflix for control of WBD represents a significant consolidation effort in Hollywood, echoing Murdoch's historical media strategies [5] - If successful, Ellison's acquisition of WBD would give him control over major media properties, including CNN, HBO, and DC, potentially reshaping the media landscape [6][15] Group 2: Implications for CNN and News Media - Ellison has indicated plans for "sweeping" changes to CNN if he gains control, suggesting a shift in editorial direction that could align with a more centrist approach to news [6][7] - His vision for a scaled news service aims to appeal to a broad audience, reminiscent of Fox News' strategy to engage viewers it believes are underserved [7] - The potential influence of Ellison's ownership over WBD could mirror Murdoch's impact on American journalism, as both seek to consolidate media power [15][16] Group 3: Deal Dynamics and Future Outlook - Ellison's pursuit of WBD has involved multiple proposals, culminating in a $30 per share cash offer, demonstrating his commitment to the acquisition despite challenges [11][12] - The upcoming deadline for WBD to inform shareholders about its recommendation on Paramount's offer is set for December 22, which could significantly alter the competitive landscape in Hollywood and beyond [17]

Overview - The company is experiencing a successful integration of WWE and UFC, validating the industrial logic behind their merger and achieving results a year ahead of schedule [1] Short-term and Long-term Focus - The management team is balancing short-term priorities with long-term growth strategies, indicating a dual focus on immediate results and future expansion [1] Market Environment - The company is benefiting from an "experience economy," which positively impacts revenue streams such as ticket sales, high-margin site fees, and premium hospitality offerings [1]

Summary of TKO Group Holdings Conference Call Company Overview - **Company**: TKO Group Holdings (NYSE: TKO) - **Key Properties**: UFC and WWE - **Upcoming Ventures**: Launch of Zuffa Boxing in early 2026 Core Industry Insights - **Experience Economy**: The company benefits from a growing experience economy, leading to increased ticket revenue, high-margin site fees, and premium hospitality opportunities [4][5] - **Media Rights Deals**: TKO has secured new media deals worth approximately $15 billion, with an average annual value (AAV) of $2 billion, enhancing revenue predictability and visibility [5][15] Financial Performance and Projections - **Profit Margins**: Both WWE and UFC operate at around 50% profit margins, with expectations for margin accretion from new media deals [5][52] - **Revenue Goals**: TKO aims to reach $1.2 billion in assets and partnerships by 2030, exceeding the previous target of $1 billion [41][52] - **Free Cash Flow**: The company targets a 60% free cash flow conversion on a normalized basis, with expectations for margin expansion to over 35% [52] Strategic Partnerships and Growth Opportunities - **UFC's New Media Partner**: The partnership with Paramount Skydance is expected to enhance UFC's visibility and audience engagement, moving away from the previous pay-per-view model [12][15] - **International Expansion**: TKO sees significant opportunities for monetization outside the U.S., particularly in regions like Australia, MENA, LATAM, Europe, and China [18][19] - **Zuffa Boxing**: Plans to create a boxing promotion similar to UFC, focusing on a stable of fighters and high-profile events, with a management fee structure to minimize risk [22][24] Upcoming Events and Marketing Strategies - **Major Events**: A significant event is planned at the White House, expected to enhance brand visibility and engagement, although no ticket sales will occur [20][21] - **Live Events Demand**: Strong consumer demand for live events is noted, with increased interest from municipalities to host UFC and WWE events [48] Marketing and Sponsorships - **Partnerships and Marketing**: The company has rebranded its sponsorship revenue line to partnerships and marketing, with a strong pipeline of new deals expected [38][40] - **Recent Deals**: Notable partnerships include agreements with DoorDash and Polymarket, contributing to a projected revenue of $450 million for the year [40] Capital Allocation and Shareholder Returns - **Shareholder Returns**: TKO has doubled its dividend and is actively engaged in a share repurchase program, emphasizing a commitment to returning capital to shareholders [54][55] - **M&A Strategy**: The company is not actively seeking acquisitions but remains open to exploring opportunities as they arise [54] Conclusion - TKO Group Holdings is positioned for significant growth through strategic media partnerships, international expansion, and the launch of new ventures like Zuffa Boxing. The focus remains on executing existing deals and enhancing shareholder value through prudent capital allocation and strong revenue growth strategies.

New this morning, TKO Group Holdings and Poly Market announcing a multi-year partnership. Poly Market is going to become the official prediction market partner for the UFC and Zalfpha Boxing. Joining us right now first on CNBC to discuss all of this, jumping into our octagon is Poly Market founder and CEO Shane Coplin.Good morning to you and UFC president and CEO Dana White. Good morning to you. Tell us tell us about this deal, what it means, how it came together.I don't know who wants to start here. Yes. > ...

Core Viewpoint - The company is focusing on enhancing its content strategy to drive revenue growth, particularly through Paramount Plus and other direct-to-consumer (DTC) properties [2][4][5]. Content Strategy - The company aims to increase theatrical and episodic content on Paramount Plus to attract more subscribers, indicating a "build it and they will come" approach [2][3]. - A significant investment of over $1.5 billion is planned for next year to enhance DTC properties, including UFC and Paramount Plus originals [4]. Industry Consolidation - The overall industry is experiencing consolidation, with the company considering a potential bid for Warner Brothers Discovery, which could be strategically beneficial given its smaller studio status [4][8]. - The regulatory environment appears favorable for a merger between Paramount and Warner Brothers, as both are smaller players compared to larger competitors like Comcast [8][9]. Financial Considerations - The company may have the financial capability to engage in a bidding war for Warner Brothers, depending on strategic decisions made by its leadership [10][11]. - The decline in cable networks due to cord-cutting trends may provide an opportunity for the company to integrate Warner Brothers' assets without significant regulatory hurdles [9]. Market Reaction - Following these developments, the company's shares have seen an increase of approximately 2.4% [12].

Group 1 - Paramount has recently laid off 1,000 employees, with approximately 600 opting for severance packages as the company mandates a return to office starting January [1] - The company anticipates an additional 1,600 staff reductions following the sale of Televisión Federal in Argentina and Chilevision in Chile, expected to be completed in Q1 2026 [2] - About 25% of Paramount's senior vice presidents and above were affected by the initial workforce reduction, aimed at streamlining decision-making and enhancing organizational agility [3] Group 2 - Paramount expects to achieve $3 billion in cost savings, an increase from the initial forecast of $2 billion [4] - The company is reorganizing into three business units: Studios, DTC, and TV Media, to streamline operations and improve decision-making [5] - Targeted one-time investments of approximately $800 million are estimated for 2026, with an additional $400 to $500 million for 2027, to support growth alongside cost-cutting measures [6] Group 3 - Paramount plans to make incremental programming investments exceeding $1.5 billion in 2026, focusing on DTC investments, Paramount+ Originals, and film slate expansion [7]

Core Insights - TKO Group Holdings reported a revenue of $1.12 billion for the quarter ended September 2025, marking a 64.4% increase year-over-year, while EPS was $0.50, down from $0.53 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.08 billion by 4.13%, but the EPS fell short of the consensus estimate of $0.55 by 9.09% [1] Revenue Breakdown - Net Revenue for IMG was $336.7 million, slightly below the estimated $338.46 million [4] - Net Revenue for UFC was $325.2 million, compared to the average estimate of $342.4 million, reflecting an 8.4% year-over-year decline [4] - Net Revenue for WWE was $402.1 million, surpassing the average estimate of $348.64 million, showing a 23.2% year-over-year increase [4] - UFC Partnerships and Marketing generated $70.8 million, exceeding the estimate of $64.8 million [4] - Corporate & Other net revenues were $63.3 million, above the estimate of $60.05 million [4] - WWE Media Rights, Production, and Content revenue was $248.9 million, compared to the estimate of $217.13 million [4] - WWE Live Events and Hospitality revenue reached $82.5 million, exceeding the estimate of $64.94 million [4] - WWE Partnerships and Marketing generated $39.9 million, above the estimate of $32.38 million [4] - WWE Consumer Products Licensing and Other revenue was $30.8 million, compared to the estimate of $28.25 million [4] - UFC Live Events and Hospitality revenue was $43.6 million, slightly below the estimate of $44.79 million [4] - UFC Media Rights, Production, and Content revenue was $200.5 million, compared to the estimate of $217.88 million [4] - Eliminations reported a revenue of -$7.4 million, better than the estimate of -$14.7 million [4] Stock Performance - TKO Group's shares have returned -5.4% over the past month, while the Zacks S&P 500 composite increased by 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company generated revenue of $1.12 billion in Q3 2025, with adjusted EBITDA of $360 million and an adjusted EBITDA margin of 32% [13][14] - Year-over-year revenue decreased by 27%, while adjusted EBITDA increased by 59%, and adjusted EBITDA margin improved from 15% in the prior year period [14] - Free cash flow for the quarter was $399 million, with a conversion rate of adjusted EBITDA at 111% [23][24] Business Line Data and Key Metrics Changes - UFC segment revenue was $325 million, a decrease of 8%, with adjusted EBITDA of $166 million, down 15% [15][16] - WWE segment revenue increased by 23% to $402 million, with adjusted EBITDA rising by 19% to $208 million [17][18] - IMG segment revenue decreased by 59% to $337 million, but adjusted EBITDA improved significantly from -$7 million to $61 million [20][21] Market Data and Key Metrics Changes - UFC's media rights production and content revenue decreased by 7% to $201 million, while WWE's media rights production and content revenue increased by 9% to $249 million [15][18] - WWE's live events revenue increased by 61% to $83 million, driven by higher ticket sales and site fee revenue [17] - The company secured significant media rights agreements, including a seven-year, $7.7 billion deal with Paramount for UFC and a five-year partnership with ESPN for WWE [5][7] Company Strategy and Development Direction - The company is focused on maximizing shareholder value, preparing for UFC's Paramount debut, and launching Zuffa Boxing in 2026 [11][30] - Strategic priorities include sustaining strong performance across all businesses, capitalizing on new growth opportunities, and enhancing global partnerships [11][30] - The company aims to achieve $450 million in high-margin partnership revenue by 2025 and targets $1 billion in total company partnership revenue by around 2030 [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's momentum, citing strong demand for premium sports content and experiences [5][11] - The company raised its full-year 2025 guidance for revenue to $4.69 billion-$4.72 billion and adjusted EBITDA to $1.57 billion-$1.58 billion [26] - Management highlighted the importance of site fees and global partnerships as significant revenue drivers for 2026 and beyond [30][66] Other Important Information - The company announced a 100% increase in its quarterly cash dividend program, with a payment of approximately $150 million made under the new program [24] - A $1 billion stock buyback program was launched, with an ASR agreement to repurchase $800 million of Class A Common Stock [24][25] Q&A Session Summary Question: Discussion on UFC media rights and international opportunities - Management emphasized the importance of execution and operational expansion, focusing on maximizing media rights opportunities internationally [37][39] Question: WWE live events revenue growth - Management noted that both premium live events and weekly events contributed to revenue growth, with high capacity and appropriate pricing strategies [40][41] Question: Distribution model with Paramount and pay-per-view model - Management clarified that while some markets still utilize pay-per-view, the focus is on expanding distribution through subscription models [46] Question: Incremental flow-through margin percentage and fighter pay structure - Management indicated that the new media rights deal would be margin accretive, with plans for increased fighter pay in line with historical margins [48][49] Question: Opportunities in boxing and potential for larger investments - Management expressed a strong appetite for boxing, focusing on super fights and the Zuffa Boxing league, while remaining cautious about distractions from core operations [52][56] Question: Site fees as a revenue driver - Management highlighted the potential for significant revenue from site fees, particularly with upcoming events in Saudi Arabia and ongoing discussions with various municipalities [64][66]

Core Insights - Entertainment companies like Electronic Arts (EA) and Endeavor are increasingly opting for private ownership to escape public market pressures and gain greater autonomy [2][3][4] Group 1: Reasons for Going Private - The shift to private ownership allows companies to prioritize long-term strategies over short-term gains, which is particularly important in the creative industries [4][9] - Companies facing costly transitions, such as streaming growth or next-gen game development, find private ownership provides a more discreet environment to recalibrate their economics [8][10] - Private equity firms and sovereign wealth funds are eager to invest in entertainment and media companies, offering compelling deals that provide existing shareholders with a premium over current stock prices [11][12] Group 2: Case Studies - Endeavor's take-private deal in March 2025, led by Silver Lake, allowed the company to reorganize and invest without the pressures of public scrutiny [5] - EA's recent acquisition in a leveraged buyout, valued at approximately $52–55 billion, highlights the attractiveness of media assets with predictable cash flow and global scale [6][14] Group 3: Future Implications - The trend of media companies going private raises questions about the future of the industry, including potential consolidation and the impact on investors who may miss out on future growth [20][21] - Companies like Warner Bros. Discovery, Lionsgate, and AMC Networks are identified as potential candidates for going private due to their cash-generating capabilities and current public market challenges [17][18][19]

Core Insights - TKO Group Holdings Inc (NYSE:TKO) is identified as a trending stock amidst rising AI bubble warnings, with bullish sentiments expressed by industry experts [1] - The company owns and operates leading combat sports assets, including UFC and WWE, which are crucial for its economic performance [2] Financial Performance - Upcoming earnings for TKO are anticipated to be critical, especially in comparison to UFC's performance [2] - The company has made strategic acquisitions, including Premier Bull Riding (PBR), sports marketing agency IMG, and On Location, enhancing its portfolio [2] Market Position - TKO's core assets, UFC and WWE, continue to dominate the company's economic landscape, accounting for the majority of its financial performance [2] - The recent deal with ESPN is expected to positively impact WWE's performance, contributing to TKO's overall growth [2]