Vince McMahon is selling 8.4 million shares of his stock in TKO Group Holdings.
Here is an excerpt from TKO’s press release with the relevant details:
TKO Group Holdings, Inc., a premium sports and entertainment company, today announced that one of its stockholders, Mr. Vincent K. McMahon (the “Selling Stockholder”), intends to offer for sale in an underwritten secondary offering 8,400,000 shares of the Company’s Class A common stock, par value $0.00001 (the “Class A Common Stock”), pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission (the “SEC”), of which the Company intends to repurchase from the underwriter approximately $100.0 million of shares of our Class A Common Stock. The Selling Stockholder will receive all of the net proceeds from this offering. No shares are being sold by the Company. In connection with the offering, Ariel Emanuel, the Company’s Chief Executive Officer and director, Mark Shapiro, the Company’s President, Chief Operating Officer and director, and certain other of the Company’s directors have indicated an interest in purchasing up to $1.0 million, $1.0 million and $850.0 thousand, respectively, of the Company’s Class A Common Stock offered in the offering at the public offering price.
McMahon holds around 28.4 million shares of stock, so he intends to sell roughly 29% of that amount. The market value of those shares was just over 700 million dollars when this news was announced. As the press release states, TKO executives Ari Emanuel and Mark Shapiro “have indicated an interest” in purchasing a portion of this stock.
Shortly after TKO launched on Wall Street in September, there was an interesting Axios report focused on the company registering all of Vince’s shares of stock for sale, thus “enabling him to avoid the lockup period that applies to other TKO stockholders like Endeavor and Silver Lake.” It was speculated that this was perhaps done to provide some “flexibility” in light of the ongoing federal investigation into McMahon’s alleged misconduct that was widely reported on in 2022 and makes him a big risk to TKO’s business.
We’ll bring you more on this story as we have it, Cagesiders.