TKO, the newly merged UFC-WWE, aspires to grow beyond fighting
Ultimate Fighting Championship and World Wrestling Entertainment executives decided to name their new publicly traded company TKO to honor the companies’ expertise in fighting, but they have broader aspirations than just owning combat sports.
TKO began trading on the New York Stock Exchange on Tuesday, culminating a merger of two live-entertainment juggernauts that was announced in April. The combined company is 51% owned by Endeavor Group Holdings, which owns assets including UFC and Hollywood talent agency WME, and 49% owned by WWE shareholders.
Shares rose 2.4% on Tuesday.
The first 18 months of the company’s existence will revolve around integrating UFC and WWE, Mark Shapiro, TKO’s president and chief operating officer, said in an interview with CNBC. That includes eventually going to market together for international media rights and bringing together the company’s production efforts and back offices, Shapiro said.
After that, TKO plans to swing into acquisition mode to grow the company, he said.
“We will ultimately be in the marketplace looking for other sports properties that we can bolt onto the flywheel enhanced by Endeavor,” Shapiro said, adding the company has a strong desire to expand internationally.
Endeavor also owns Professional Bull Riders and two tennis tournaments — the Mutua Madrid Open and the Miami Open. The “flywheel” includes Endeavor’s representation of professional athletes through WME, its expertise in negotiating media rights, product licensing and enhancing live events to boost venue fees. Shapiro also envisions direct-to-consumer options with TKO that don’t exist yet.
WWE currently streams on NBCUniversal’s Peacock in a deal that concludes in 2026. Shapiro said other streaming entities have already expressed interest in bidding on the rights when that deal expires.
In the coming months, TKO executives will also negotiate new media deals for WWE “Raw” and “SmackDown” on traditional pay TV. NBCUniversal and Fox currently own those rights.
Who runs TKO?
Vince McMahon, 78, is the executive chairman of TKO and Ari Emanuel is the CEO. Shapiro made it clear who will be the company’s leader.
“Ari Emanuel is running the company,” Shapiro said. “Vince will play a role. He’s got experience and influence. But he understands the role of CEO is Ari’s. This is not a shared position.”
McMahon has earned a reputation as a force of personality, both as a WWE character and behind the scenes, in his more than 40 years running WWE. He’s also had some recent legal issues. On July 17, according to a recent filing, federal law enforcement agents served a federal grand jury subpoena on McMahon stemming from allegations of sexual misconduct. No charges have been brought in the investigation.
Shapiro noted Emanuel has already proven he can run a company along side a sports league co-founder with a big personality and checkered past. Dana White, UFC’s president, has dealt with a number of controversies in his personal life, including slapping his wife in a recorded video, while brashly and unapologetically staying in his job.
“Me leaving hurts the company. Hurts my employees. Hurts the fighters. Doesn’t hurt me,” said White during a media event earlier this year “Do I need to reflect? No, I don’t need to reflect. … I own this. I’m telling you that I’m wrong.”
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
WATCH: Vince McMahon explains why he sold WWE to Endeavor
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Reddit shares popped about 5% after the social media company debuted new artificial intelligence-powered advertising tools.
The two new features, announced Monday in a post during the Cannes Lions festival, will help brands better leverage discussions on the platform. The company said the tools are powered by an engine called Reddit Community Intelligence that turns “posts and comments into structured intelligence.”
Reddit announced a “listening tool” called Reddit Insights, which shares real-time insights with marketers to help them identify trends and launch campaigns. The other tool, called Conversation Summary Add-ons, allows brands to show “positive” user content under their ads.
“These are tools for a new era of community marketing, one where brands can tap into Reddit’s authenticity and connect meaningfully with high-intent communities around the world,” the company wrote.
The company said Publicis served as the exclusive alpha tester for Reddit Insights, while Lucid and Jackbox Games were among the early testers for Conversation Summary Add-Ons.
Companies across industries are betting on new ways to harness AI to improve advertising campaigns and better engage with users. These new tools are transforming the industry while also putting pressure on some advertising stalwarts.
The industry is also currently navigating a bumpy environment spurred by the trade war with China.
During the recent earnings season, many companies warned of sluggish advertising sales in certain regions due to a rocky macroeconomic environment. Recent developments, however, have suggested a cooling of tensions between the U.S. and China.
Last month, Reddit posted strong sales and upbeat guidance. The company has benefited from recent changes to Google search and internal site improvements, which include convincing logged-out users to open accounts. Logged-in accounts are more beneficial to advertisers.
WATCH: Outgoing WPP CEO says AI will ‘revolutionize’ advertising business
Helsing uses AI to analyze large amounts of sensor and weapons system data from the battlefield.
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European defense technology startup Helsing on Tuesday said that it’s raised 600 million euros ($693.6 million) in a bumper new round of funding.
The investment was led by Prima Materia, the venture capital firm founded by Spotify CEO Daniel Ek and by Shakil Khan, an early investor in the popular music streaming app. Ek is also chairman of Helsing.
Existing investors Lightspeed Venture Partners, Accel, Plural, General Catalyst and Saab also put money in, alongside new investors BDT & MSD Partners.
Defense and the technology behind it have become a hot area for investors lately, amid major global conflicts, including the Ukraine war to Israel-Gaza. Last week saw a further escalation of war in the Middle East as Israel launched a series of airstrikes against Iran.
In 2024, venture funding in Europe’s defense, security and resilience sector reached an all-time high of $5.2 billion, according to a recent report from the NATO Innovation Fund. The sector grew 30% in the past two years, outperforming the broader VC market, which saw a 45% decline over the same period.
Founded in 2021, Helsing sells software that uses artificial intelligence technology to analyze large amounts of sensor and weapons system data from the battlefield to inform military decisions in real time. Last year, the startup also began manufacturing its own line of military drones, called HX-2.
Helsing, which operates in the U.K., Germany and France, said it would use the fresh cash to invest in Europe’s “technological sovereignty” — which refers to attempts to onshore the development and production of critical technologies, such as AI.
“As Europe rapidly strengthens its defence capabilities in response to evolving geopolitical challenges, there is an urgent need for investments in advanced technologies that ensure its strategic autonomy and security readiness,” Ek said in a statement out Tuesday.
Helsing did not disclose its new valuation following the latest financing round, which is subject to “certain approvals,” according to a statement. The firm was previously valued at around 5 billion euros in a 450 million euro funding round led by General Catalyst last year.
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