LAS VEGAS - UFC®, the world’s leading mixed martial arts organization and a key asset of TKO Group Holdings (NYSE: TKO), has entered into a multiyear partnership with Meta Platforms, Inc., marking a significant collaboration in sports technology. TKO’s stock has delivered an impressive 69% return over the past year, with analysts maintaining a strong buy consensus. According to InvestingPro analysis, the company appears undervalued based on its Fair Value estimates. The partnership aims to enhance fan engagement through Meta’s suite of technology, including artificial intelligence (AI) and augmented reality (AR) tools.
UFC President Dana White expressed enthusiasm for the collaboration, noting that Meta’s technological expertise will elevate fan experiences to unprecedented levels. Meta’s founder, Mark Zuckerberg, also conveyed his excitement about the sport and the opportunity to innovate fan interactions. TKO Group Holdings has demonstrated strong financial health, with InvestingPro data showing substantial revenue growth of 67% in the last twelve months and a robust market capitalization of $12.48 billion.
Under the agreement, Meta becomes UFC’s first Official Fan Technology Partner and the Official AI Glasses Partner. The partnership encompasses the integration of Meta’s platforms and services, such as Meta AI, Meta Glasses, Meta Quest, Facebook, Instagram, WhatsApp, and Threads, across UFC’s content distribution channels.
Fans can expect to see Meta’s brand presence during Pay-Per-View events, Fight Nights, and within the iconic Octagon®. Additionally, Threads, a text-based platform for public conversations developed by Meta, will serve as an Official Social Media Partner for UFC, providing a dedicated space for the UFC community to engage and share content.
The partnership also promises to introduce new innovations, such as a revamped fighter rankings system and other enhancements to the UFC experience. Further details about these initiatives will be disclosed as the partnership progresses.
UFC, a subsidiary of TKO Group Holdings (NYSE: TKO), boasts a global fan base exceeding 700 million and a social media following of around 300 million. The organization hosts over 40 live events annually and reaches an audience of over 950 million households in more than 170 countries. Want deeper insights? InvestingPro subscribers get access to 10+ additional exclusive ProTips and comprehensive financial analysis, including detailed valuation metrics and expert recommendations.
This strategic alliance with Meta signifies UFC’s commitment to leveraging technology to deepen fan interaction and demonstrates Meta’s continued investment in expanding its presence in the sports industry. The partnership is based on a press release statement issued by UFC.
In other recent news, TKO Group Holdings has seen significant developments, starting with Silver Lake and its affiliates acquiring majority control of the company. This acquisition, detailed in a filing by Endeavor Group Holdings, the parent company of TKO, has resulted in Silver Lake holding approximately 60.9% of TKO’s total voting securities. In financial updates, TKO Group Holdings disclosed recast historical financial data following its acquisition of assets from Endeavor, aiming to provide a more accurate representation of its financial condition. This update includes adjustments for the acquisition of Professional Bull Riders, On Location, and IMG businesses.
Analyst opinions have also been active, with Jefferies raising TKO’s stock target to $220 and maintaining a Buy rating, highlighting the anticipated value from the UFC’s upcoming media rights deal. Meanwhile, Citi analysts have maintained their Buy rating on TKO Group with a price target of $170, noting the company’s fourth-quarter earnings for 2024 exceeded Wall Street’s expectations. The completion of strategic acquisitions like IMG and On Location aligns with TKO’s broader strategy to diversify its offerings. These developments are part of TKO Group’s ongoing efforts to strengthen its market presence and financial performance.
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