Netflix Deal for WWE ‘RAW’ Sends TKO Group Shares Up 22%

Shares of TKO Group soared 22% Tuesday on news that the newly formed company inked a 10-year, $5 billion deal with Netflix for the streamer to air its popular “Monday Night Raw.”

Starting in January 2025, Netflix will also become the international home of all WWE content in the U.S., Canada and Latin America, with additional regions to be added over time, TKO said in a regulatory filing. That includes not only “Raw” but also WWE’s other weekly shows, including “SmackDown” as well as the live events like “WrestleMania.”

“This deal is transformative,” said TKO President and COO Mark Shapiro in the filing. “It marries the can’t-miss WWE product with Netflix’s extraordinary global reach and locks in significant and predictable economics for many years. Our partnership fundamentally alters and strengthens the media landscape, dramatically expands the reach of WWE, and brings weekly live appointment viewing to Netflix.”

TKO shares gained $17.38, or 22.5% after the opening bell to trade at $94,79 the highest point since shortly after the company was created in September with the combination of WWE and UFC.

Netflix shares also gained on the news, adding $32.87, to $488.58.

Wells Fargo analysts applauded the deal, calling it “landmark move” for Netflix.

The deal is part the company’s aim to accelerate advertising scale and grow revenues beyond paid sharing, the analysts noted, keeping an “Overweight,” or “Buy” rating on Netflix stock. Shares are trading above the firm’s $460 price target for the year.

Wells Fargo predicted that “Raw ” could add high single digits or low-teens to Netflix’s U.S., Canada, Australia and New Zealand ad impressions in 2025, and predicted that even ad-free Netflix subscribers will still see advertising during WWE’s commercial breaks.

This is hardly a “bet the farm” deal for Netflix, the analysts wrote. Investors will likely get more color on how this deal fits the company’s long-term strategy when Netflix reports its fourth-quarter results after the market closes Tuesday, Wells Fargo added.

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