According to a regulatory filing with the SEC, Vince McMahon is selling 8.4 million shares in TKO. The news comes two days after the company announced earnings for the first time since the WWE and UFC merger.
The value of the stock is estimated at $700M per The Hollywood Reporter and is just 25% of McMahon’s overall holdings. The filing indicates that TKO intends to purchase $100M of the shares using the money from Zuffa’s revolving credit facility from 2016.
Mark Shapiro and Ari Emmanuel are those interested in purchasing the shares per the filing. Each expressed an interest to buy at least $1M each of shares.
Payout Perspective:
The move reflects McMahon cashing out a portion of shares at a time when the stock is high but also TKO retaining those shares that the former WWE boss is selling off. This appears to be a stock buyback and the purchase is being financed with a loan made to Zuffa.
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