Form 4: Silver Lake Increases Stake in TKO Group Holdings Through Open Market Purchases

Silver Lake West HoldCo, L.P., along with related entities and Egon Durban, reported purchasing additional shares of TKO Group Holdings, Inc. Class A Common Stock through a Rule 10b5-1 trading plan.

Summary

• Silver Lake West HoldCo, L.P., Silver Lake West HoldCo II, L.P., Silver Lake West VoteCo, L.L.C., and Egon Durban, who is a director of TKO Group Holdings, Inc., have reported changes in their beneficial ownership of TKO's Class A Common Stock.
• The purchases were made by Endeavor Operating Company, LLC (EOC) pursuant to a Rule 10b5-1 trading plan adopted on December 17, 2024, and expiring on or prior to March 31, 2025.
• Between February 10, 2025, and February 12, 2025, EOC acquired shares at various prices ranging from approximately $166.63 to $177.90 per share.
• The total number of shares beneficially owned indirectly by Endeavor Operating Company, LLC increased from 2,192,817 to 2,579,437 as a result of these transactions.
• WME IMG, LLC also holds 1,825,030 shares.
• The reporting persons have disclaimed beneficial ownership of the securities reported, except to the extent of their pecuniary interest.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the filing indicates continued investment by a major shareholder, suggesting confidence in the company's future performance. The purchases are part of a pre-defined plan, reducing uncertainty.

Positives

• The purchases indicate confidence in TKO Group Holdings, Inc. by a major shareholder, Silver Lake.
• The Rule 10b5-1 trading plan provides transparency and avoids concerns about insider trading.

Future Outlook

The Rule 10b5-1 trading plan will continue to operate until March 31, 2025, which may result in further share purchases by Endeavor Operating Company, LLC.

Industry Context

This filing reflects ongoing investment activity by a major shareholder in TKO Group Holdings, a company formed from the combination of WWE and UFC, indicating continued confidence in the company's prospects within the sports and entertainment industry.

Comparison to Industry Standards

• Comparing Silver Lake's investment activity to similar private equity firms' investments in publicly traded entertainment companies shows a common trend of strategic stake building.
• For example, KKR's investments in media companies and Blackstone's investments in entertainment venues demonstrate similar patterns of long-term investment strategies.
• The reported transactions are in line with industry standards for insider trading compliance through the use of Rule 10b5-1 trading plans, which are commonly adopted by executives and major shareholders to manage their trading activities.

Stakeholder Impact

• The increased stake by Silver Lake could positively influence shareholder confidence.
• The transactions do not appear to have a direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

TKO Group Holdings, Silver Lake, Endeavor Operating Company, Egon Durban, Class A Common Stock, Beneficial Ownership, Rule 10b5-1, Share Purchases, Form 4