WWE, UFC Owner Endeavor Agree to $21 Billion Merger
WWE and UFC parent company Endeavor have officially agreed to a merger.
Endeavor now plans to form a multi-billion dollar live sports and entertainment company with WWE and UFC. The deal values WWE at $9.3 billion and UFC at $12.1 billion, bringing the two combat sports brands together under a new publicly traded company, with Endeavor holding a 51% controlling interest and WWE shareholders in control of the remaining 49%. The new company, which has yet to be named, will trade under the ticker symbol “TKO.”
In a press release, Endeavor CEO Ari Emanuel noted that he sees endless opportunity by adding WWE to his portfolio.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Emanuel. “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.”
The move makes sense from a practical standpoint, as very few suitors could handle WWE’s unrelenting travel schedule. UFC does not tour as much as WWE, but it shares a similar business model. The move is also financially beneficial to Vince McMahon, who will maintain a position of power with the new ownership.
“I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” said McMahon. “Together, we will be a $21-plus 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.”
The new company will be led by Emanuel as chief executive officer, who is also chief executive officer of Endeavor. McMahon will act as executive chairman of the board, and Mark Shapiro will serve as president and chief operating officer of both Endeavor and the new company. Dana White (president of UFC) and Nick Khan (president of WWE) will both remain in high-profile positions. The board of directors, which will be appointed at a later date, will be 11 members, six to be appointed by Endeavor and five to be appointed by WWE.
The transaction is pending regulatory approval and is expected to close in the second half of 2023.