WWE's 'Raw' to run exclusively on Netflix for 10 years

By Tomi Kilgore

$5 billion deal sends shares of WWE, UFC parent, TKO, rocketing toward a record gain

Shares of TKO Group Holdings Inc. soared toward a record gain Tuesday, after the parent of World Wrestling Entertainment and Ultimate Fighting Championship announced a deal with Netflix Inc. in which WWE's "Raw" program will be shown exclusively on the streaming service.

The deal, for a rights fee of more than $5 billion, marks a major shift in programming as the weekly "Raw" program will leave linear TV for the first time since its inception 31 years ago.

"This deal is transformative," said TKO Chief Operating Officer Mark Shapiro. "It marries the can't-miss WWE product with Netflix's extraordinary global reach and locks in significant and predictable economics for many years."

The agreement is for an initial term of 10 years. Netflix will have the option to extend the deal for an additional 10 years, and to opt out after the initial five years.

TKO's stock (TKO) rocketed 22.7% in morning trading, which puts it on track to blow past the current one-day record gain of 20% on Dec. 31, 1999.

And Netflix's stock (NFLX) edged up 0.6%, while shares of Endeavor Group Holdings Inc. (EDR), which holds a controlling interest in TKO, jumped 5.3% toward a 15-month high.

Starting in January 2025, "Raw" will stream exclusively on Netflix in the U.S., Canada, U.K. and Latin America, with additional countries to be added over time.

Netflix will also exclusively show all WWE shows and specials outside of the U.S. as they are available, including "SmackDown" and "NXT," as well as "WrestleMania," "SummerSlam" and "Royal Rumble."

"We are excited to have WWE Raw, with its huge and passionate multigenerational fan base, on Netflix," said Netflix Chief Content Officer Bela Bajaria. "By combining our reach, recommendations, and fandom with WWE, we'll be able to deliver more joy and value for their audiences and our members."

TKO said WWE's "Raw" is currently the top show on the USA Network. Meanwhile, shares of Comcast Corp. (CMCSA), the parent of NBCUniversal, which runs USA, gained 0.5%.

TKO's stock gained 7.5% over the past 12 months, while the S&P 500 index SPX has run up 20.8%.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

01-23-24 0940ET

Copyright (c) 2024 Dow Jones & Company, Inc.