LOS ANGELES (CelebrityAccess) — Endeavor Group Holdings announced a deal to merge World Wrestling Entertainment, Inc. with the mixed martial arts brand Ultimate Fighting Championship (UFC) into one global brand worth a reported $21 billion dollars.
Upon the closing of the deal, which still requires the customary regulatory approval, Endeavor will control a 51% stake in the new, yet-to-be-named company, while WWE’s current shareholders will hold a 49% interest.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Ariel Emanuel, CEO of Endeavor. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”
“Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past seven years – and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” said Vincent K. McMahon, Executive Chairman of WWE.
“Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands. I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level,” McMahon added.
The new company will be led by Ari Emanuel, who will serve as Chief Executive Officer in addition to his current leadership role at Endeavor; Vince McMahon, who will serve as Executive Chairman of the Board; and Mark Shapiro, who will be President and Chief Operating Officer of both Endeavor and the new company.
Dana White will continue in his role as President of UFC and Nick Khan will serve as President of WWE. The Board of Directors will consist of 11 members who will be appointed at a later date, with 6 appointments from Endeavor and five from WWE.
Under the terms of the transaction, existing WWE shareholders will roll all existing equity into the new entity that will be the parent company of UFC and WWE and the yet-to-be-named company intends to go public by listing on the New York Stock Exchange.
The transaction has been unanimously approved by the Executive Committee of the Board of Directors of Endeavor and by the Board of Directors of WWE. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. The transaction is expected to close in the second half of 2023.
