Shares of TKO Group Holdings Inc. are skyrocketing after the parent company of World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) announced a groundbreaking partnership with Netflix Inc. Under the agreement, WWE's popular program, "Raw," will be exclusively available on the streaming service, marking a significant shift in programming for the show.
"This deal is truly transformative," stated Mark Shapiro, Chief Operating Officer of TKO. He emphasized that the partnership brings together WWE's unmatched product with Netflix's vast global reach, securing stable and substantial financial benefits for both parties over the long term.
Details regarding the financial terms and duration of the deal have not been disclosed at this time. WWE did not immediately respond to requests for comment.
The news sent TKO's stock price (TKO) soaring by an impressive 22.1% during premarket trading. If this trend continues, TKO will surpass its previous one-day record gain of a 20% rally set on December 31, 1999.
In addition, Netflix's stock (NFLX) experienced a 1.6% increase prior to market open, while shares of Endeavor Group Holdings Inc. (EDR), which holds a controlling interest in TKO, surged by 6.3%, reaching their highest point in 21 months.
Beginning in January 2025, "Raw" will be exclusively available for streaming on Netflix in the United States, Canada, United Kingdom, and Latin America. Additional countries will be added to the list over time.
Furthermore, Netflix will have exclusive rights to air all WWE shows and specials outside of the aforementioned regions. This includes popular programs like "SmackDown" and "NXT," as well as highly-anticipated events such as "WrestleMania," "SummerSlam," and "Royal Rumble."
Netflix's Chief Content Officer, Bela Bajaria, expressed excitement about the partnership, stating, "We are thrilled to bring WWE's 'Raw,' which boasts a massive and dedicated fan base spanning generations, to Netflix. By leveraging our extensive reach, personalized recommendations, and devoted followers alongside WWE, we aim to provide even more joy and value for their audiences and our members."
According to TKO, "Raw" is currently the highest-rated show on the USA Network. This announcement also had a positive impact on shares of Comcast Corp. (CMCSA), the parent company of NBCUniversal, which operates USA. Comcast saw a 0.7% gain in premarket trading on Tuesday.
While TKO's stock has experienced a slight decline of 1.8% over the past three months leading up to Monday, the broader S&P 500 index has seen a substantial increase of 15%.
Stay tuned for further updates on this groundbreaking collaboration between TKO Group Holdings Inc. and Netflix Inc.
