TKO Group's Strategic Partnership with Paramount Skydance and Financial Outlook

Summary
TKO Group's Strategic Partnership with Paramount Skydance and Financial Outlook
Eric Handler from Roth Capital sets a price target of $210 for TKO Group (NYSE:TKO), indicating a potential upside of about 16.78%. TKO Group's shares surged over 7% following a $7.7 billion deal with Paramount Skydance, enhancing its market presence and revenue streams. The deal ensures a steady revenue flow for TKO, potentially boosting its financial performance with an average payment of $1.1 billion annually over seven years.
On August 12, 2025, Eric Handler from Roth Capital set a price target of $210 for TKO Group (NYSE:TKO). At the time, TKO was trading at $179.82, suggesting a potential upside of about 16.78%. TKO Group is known for its involvement in the sports entertainment industry, particularly through its ownership of the Ultimate Fighting Championship (UFC).
Recently, TKO shares surged over 7% following a significant $7.7 billion deal with Paramount Skydance. This agreement makes Paramount Skydance the exclusive distributor of UFC events, which will be streamed on Paramount+ and simulcast on CBS. This strategic move is expected to enhance TKO's market presence and revenue streams.
The deal comes after a merger between Skydance Media and Paramount Global, valued at over $8 billion. Paramount will pay an average of $1.1 billion annually over seven years, with payments increasing towards the end of the deal. This ensures a steady revenue flow for TKO, potentially boosting its financial performance.
Currently, TKO's stock price is $179.52, a slight decrease of 0.27% or $0.48. The stock has fluctuated between $179.11 and $182.86 today, with the latter being its highest price in the past year. The lowest price in the past year was $113.16, indicating significant growth over the period.
TKO's market capitalization stands at approximately $14.68 billion, reflecting its substantial presence in the market. With a trading volume of 127,358 shares today, investor interest remains strong, likely influenced by the recent Paramount Skydance deal and the optimistic price target set by Roth Capital.