President of World Wrestling Entertainment Inc. Vince McMahon makes an in-ring appearance in the course of the WWE Monday Night Raw show on the Thomas & Mack Center on August 24, 2009 in Las Vegas, Nevada.
Ethan Miller | Getty’s paintings
Vince McMahon Worldwide wrestling entertainment is in advanced talks to sell to Ari Emanuel’s Endeavor Groupparent company UFC, according to people familiar with the matter.
The deal could possibly be announced as early as Monday. The UFC and WWE are expected to form a recent publicly traded company as a part of the deal, according to individuals who declined to be named due to the confidential nature of the discussions.
related investment news
![Bob Iger's return: Disney's CEO takes action that should please investors](https://image.cnbcfm.com/api/v1/image/107146935-1667808708977-gettyimages-681049-39715508disn_20011112_00073.jpeg?v=1680361985)
According to the people, Endeavor is ready to own 51% of the brand new combat sports and entertainment company while WWE shareholders will get 49%. The Endeavor deal gives WWE an enterprise value of $9.3 billion, they said.
Emanuel is anticipated to function CEO of each Endeavor and the brand new company. McMahon can also be expected to function executive chairman, while Endeavor chairman Mark Shapiro may also serve in the identical role at the brand new company. Dana White will remain president of the UFC while WWE CEO Nick Khan will function president of the wrestling business.
The event takes place on the identical weekend that WWE hosts its flagship live event, WrestleMania, in California. The company has been on the lookout for a buyer for several months. McMahon returned to the company as president in January to oversee the method. WWE shares are up greater than 33% this yr, bringing a market value of over $6.79 billion.
The deal will effectively end WWE’s decades-long status as a family business. McMahon’s father founded WWE in its original incarnation within the mid-Twentieth century, and McMahon is the company’s majority shareholder. McMahon bought the company from his father in 1982. Since then, the company has turn into a world phenomenon, spawning stars akin to Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.
McMahon, 77, retired from the company in July after a series of revelations that over time he had paid several women thousands and thousands of dollars to silence them about alleged affairs and misconduct. His daughter, Stephanie McMahon, became co-CEO with Khan. Paul Levesque, who’s each the husband of Stephanie McMahon and the wrestler often called Triple H, took over creative duties from Vince McMahon.
When Vince McMahon returned in January, Stephanie McMahon stepped down and Khan fully took over as CEO. The elder McMahon recently entered right into a two-year employment contract, according to submission of securities.
Khan has been circulating the media in recent weeks to discuss a possible sale. Morgan Brennan of CNBC told CNBC on Thursday that it was a solid sales process that attracted many interested buyers.
![WWE CEO Nick Khan says he remains optimistic about plans to introduce betting](https://image.cnbcfm.com/api/v1/image/107218063-16802076431680207639-28806273312-1080pnbcnews.jpg?v=1680208067&w=750&h=422&vtcrop=y)
WWE brings with it a solid media and live event business in addition to many years of mental property. Last yr, the company generated $1.29 billion in revenue, mainly driven by a $1 billion media entity.
The UFC paid off with Endeavor. Last yr, the MMA league helped Endeavor’s sports business make $1.3 billion. Endeavor’s market capitalization was roughly $10.53 billion at Friday’s close. The Endeavor-WWE deal values the UFC at over $12 billion.
WWE, at the least on the face of it, would also slot in well with Endeavor and UFC cultures. McMahon has a brash public personality, which makes him a seemingly good match for Emanuel and White, who’re also known for his or her oversized personalities.
White, like McMahon, isn’t any stranger to scandal. Earlier this yr, a video surfaced of the UFC boss punching his wife during a public altercation at a Latest 12 months’s Eve party in Mexico. White apologized.
Disclosure: Peacock, the streaming service owned by CNBC parent NBCUniversal, handles WWE events like WrestleMania.