Earnings UncertaintyThe deals, particularly for On Location and IMG, introduce uncertainty and volatility into EBITDA and cash flow forecasts, leading to investor concerns.
Shareholder AlignmentThere is a risk that the new owner of TKO's parent company, which controls 59% of TKO, may not be aligned with minority shareholders.
Valuation ConcernsThe acquisition could potentially slow the overall EBITDA growth rate and lead to a 10-15% conglomerate discount added to the valuation.