On September 12, WWE and UFC officially merged to become TKO.
TKO is now a publicly traded company that allows civilians to invest in the group. As part of an SEC registration statement, TKO listed the risk factors that come with investing.
In the risk factors included ability to generate revenue from discretionary and corporate spending on events, relationships with media platforms, content distribution, a competitive market, union organization, and more.
In the competitive market section, AEW, IMPACT Wrestling, Bellator MMA, and more wrestling and MMA companies are listed.
We face competition from a variety of other domestic and foreign companies. We also face competition from alternative providers of the content and events that we offer, including Bellator, M-1 Global, Professional Fighters League, Combate Global, Invicta FC, Cage Warriors, AMC Fight Nights, ONE Championship, Rizin Fighting Federation, Absolute Championship Akhmat, Pancrase, Caged Steel, Eagle Fighting Championship, KSW, Extreme Fighting Championship, All Elite Wrestling, Impact Wrestling, Ring of Honor and New Japan Pro-Wrestling and from other forms of media, entertainment and leisure activities in a rapidly changing and increasingly fragmented environment. Other new and existing professional wrestling leagues also compete with our goods and services. For the sale of our consumer products, we compete with entertainment companies, professional and college sports leagues and other makers of branded apparel and merchandise. Any increased competition, which may not be foreseeable, or our failure to adequately address any competitive factors, could result in reduced demand for our content, live events, or brand, which could have an adverse effect on our business, financial condition, and results of operations.
In the growth vectors section, it’s noted that TKO believes they can expand their live events market.
We believe we can grow Live Events revenue by expanding the number of live productions and ticket sales, expanding premium VIP offerings to drive higher per event revenues, increasing our site fees and leveraging our IP to drive monetization across events. Compelling, live and original content is at the core of TKO, driving brand strength and fan engagement.
Other findings and statements in the filing include current lawsuits for both WWE and UFC, talent development and market plans, revenue generated through the first six months of 2023, and more.
Fans can view the entire filing by clicking here.
