Ari Emanuel buys stake in Endeavor-controlled TKO Group Holdings, while former WWE boss Vince McMahon sells nearly a third of his stake

Former WWE CEO Vince McMahon is selling nearly a third of his shares in TKO Group Holdings.

The controversial impresario is selling 8.4 million shares, which had a market value of about $700 million as of Thursday’s close. Last summer, McMahon was listed as owning 28 million shares of TKO, the newly formed parent company of WWE and UFC. Endeavor, which owns the UFC, has a controlling 51% stake in TKO, which traded last September.

In connection with the sale of McMahon, TKO as a company plans to buy $100 million worth of stock, according to an SEC filing. CEO Ari Emanuel and President and COO Mark Shapiro; and other members of the TKO board “expressed their interest” in raising $1 million in stock each, with several other directors receiving an additional $850,000.

According to a press release, TKO will not sell any shares as part of the transaction. The purchases by TKO and its management are separate from Endeavor’s operations.

TKO launched earlier this year as a vehicle for combining martial arts giants. Not long after the IPO, Endeavor announced that it was reviewing its strategic options. Silver Lake Partners, a private equity firm and Endeavor’s largest shareholder, said it was considering a plan to take Endeavor private. The parent company of WME and IMG went public in 2021.

Endeavor has converted its most profitable assets into TKO in the hope that this will boost the former’s share price. But the setback did not materialize and Emanuel said this month that Endeavor was exploring strategic alternatives, although its interest in TKO would not change.

Earlier this week, TKO reported its first quarter results, with results supported by media rights, content royalties, live events and sponsorships. WWE’s financials were slightly weaker, with executives citing the timing of certain events during the quarter ended Sept. 30.

Jill Goldsmith contributed to this report.