World Wrestling Entertainment and UFC parent company Endeavor Group Holdings, Inc announced they signed a deal to form a new, publicly listed company. The new venture will combine their global sports entertainment brands: WWE and UFC.
Endeavor shareholders will own a 51% controlling interest in the newly formed company while existing WWE shareholders will hold a 49% interest. With UFC worth $12.1 billion and WWE valued at $9.3 billion, the deal values the new and currently-unnamed company at over $21 billion.
Endeavor's Ariel Emanuel will lead the new company as CEO while continuing his duties as Endeavor's Chief Executive Officer. The company will also be led by WWE Executive Chairman Vince McMahon, who will retain his title at the new company, and Mark Shapiro, President and Chief Operating Officer of Endeavor and the new company. President of UFC Dana White will continue in the same role while Nick Khan serves as WWE President. The 11 members forming the Board of Directors will be appointed later. Endeavor will appoint six members, and WWE will select five.
"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." McMahon echoed Ari's statement, explaining why the new company was the best option for shareholders. "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."
It should be noted that while 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, it is still "subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals." As such, the transaction is expected to close in the second half of 2023.
The new company is an exciting move for WWE and UFC. As the official press release reads, "Together, UFC and WWE will have global reach, impressive scale, and omnichannel distribution. "
Source: WWE