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- WWE has agreed to merge with UFC as part of its deal with Endeavor Group.
- Ari Emmanuel’s Endeavor owns UFC and controls a majority stake in the new company.
- Vince McMahon’s WWE has been looking for a buyer for months.
World Wrestling Entertainment Chairman Vince McMahon (left) and wrestler Triple H in the ring during the WWE Monday Night Raw show at the Thomas & Mack Center on August 24, 2009
Ethan Miller | Getty Images Entertainment | Getty Images
Vince McMahon’s World Wrestling Entertainment has agreed to merge with the UFC to form a new public company controlled by the Endeavor Group, the companies announced Monday morning.
Under the terms of the deal, Endeavor will own a 51% stake in the new combat sports and entertainment company, while WWE shareholders will own the remaining 49%. The deal values WWE at $9.3 billion and the Endeavor-owned UFC at $12.1 billion, the companies said in a press release.
WWE shares fell in pre-market trading while Endeavor shares rose.
Ari Emmanuel will serve as CEO of both Endeavor and the new company, according to the companies. Similarly, McMahon will become Executive Chairman, and Endeavor President and COO Mark Shapiro will also serve in the same role in the new company. Dana White will remain as president of the UFC, while WWE CEO Nick Kahn will remain as president of the wrestling business.
The board is made up of 11 members, 6 from Endeavor and 5 from WWE. The name of the combined company will be announced at a later date.
Ari Emmanuel speaks on stage at the 2017 LACMA Art + Film Gala Honoring Mark Bradford and George Lucas presented by Gucci at LACMA on November 4, 2017 in Los Angeles, California.
Stephanie Keenan | Getty Images Entertainment | Getty Images
The announcement confirmed an earlier CNBC report. It also came a day after WWE wrapped up WrestleMania, its flagship live event in California. McMahon said he returned to the company in January as chairman and oversaw the process. WWE stock has risen more than 33% this year as of Friday’s closing bell, putting him at over $6.79 billion in market value.
The deal pairs two of the world’s largest sports entertainment brands. With notable differences, WWE features scripted fights and soap opera-like storylines, while UFC showcases authentic and brutal mixed martial arts fights. Several UFC fighters have already wrestled for WWE, including Ronda Rousey and Brock Lesnar.
UFC champion and superstar Conor McGregor applauded the news of the pending deal on Sunday night. 1 tweetfollowed up with another tweet showing an image of him swinging UFC and WWE Championship Belts.
The merger also marks the end of decades of running WWE as a family business. McMahon’s father founded his WWE in its original form in the mid-20th century. McMahon, who bought the company from his father in 1982, is the controlling shareholder. Over the past four decades, WWE has grown into a global phenomenon, producing breakout stars like Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista, and John Cena.
McMahon, 77, left the company in July after a string of revelations that he paid millions of dollars over the years to silence women about alleged affairs and wrongdoing. His daughter, Stephanie McMahon, became co-CEO with Khan. Stephanie McMahon’s husband and wrestler Paul Levesque, better known as Triple H, took over the creative duties from Vince McMahon.
Dana White attends the UFC 282 post-fight press conference at T-Mobile Arena in Las Vegas, Nevada on December 10, 2022.
Amy Kaplan | Icon Sportswire | Getty Images
After Vince McMahon returned in January, Stephanie McMahon stepped down and Khan took over the CEO role entirely. Elder McMahon recently signed a two-year employment contract, according to securities reports.
Khan has been touring the media in recent weeks to discuss a potential sale. He told CNBC’s Morgan Brennan on Thursday that it’s been a solid process and has attracted many interested buyers.
WWE provides Endeavor shareholders with a strong media and live events business and decades of intellectual property. The company made $1.29 billion in revenue last year, largely driven by his $1 billion media division.
Meanwhile, the UFC paid off for Endeavor. Last year, the MMA league helped his parent company’s sports business generate $1.3 billion in revenue. Endeavor’s market cap was around $10.53 billion at the close of business on Friday.
WWE also fits well into the culture of Endeavor and the UFC, reflecting the leader’s hard-edged style. McMahon, Emmanuel, and White are known for their extraordinary personalities, each with dedicated allies and harsh critics.
White is no stranger to scandals, either. Earlier this year, a video emerged showing the UFC boss slapping his wife during a public altercation at a New Year’s Eve party in Mexico. he later apologized.
Disclosure: Peacock, a streaming service owned by CNBC’s parent company NBCUniversal, does WWE events such as WrestleMania.
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