Vince McMahon Worldwide wrestling entertainment agreed to a merger with the UFC to form a recent publicly traded company controlled by Endeavor groupthe firms announced on Monday morning.
Endeavor will own 51% of the recent combat sports and entertainment company, while WWE shareholders will own the remaining 49%, under the terms of the deal. The deal values WWE at $9.3 billion and the Endeavor-owned UFC at $12.1 billion, the firms said. in the press release.
The transaction is expected to shut in the second half of 2023. WWE shares fell greater than 2% on Monday, while Endeavor fell greater than 5%.
Ari Emanuel will serve as CEO of each Endeavor and the recent company, the firms said. McMahon can even serve as executive chairman, and Endeavor chairman and COO Mark Shapiro can even serve in the same roles at the recent company. Dana White will remain president of the UFC and WWE CEO Nick Khan will remain president of the wrestling business.
“It may be UFC 2.0,” Emanuel said in an interview that aired Monday on CNBC’s Squawk on the Street.
The board will consist of 11 people, six appointed by Endeavor and five by WWE. The name of the combined company can be announced at a later date. The corporate can be listed on the Latest York Stock Exchange under the ticker symbol TKO.
Ari Emanuel speaks on stage at the 2017 LACMA Art + Film Gala in honor of Mark Bradford and George Lucas presented by Gucci at LACMA on November 4, 2017 in Los Angeles, California.
Stefanie Keenan | Getty Images Entertainment | Getty Images
The announcement confirmed an earlier CNBC report. It also got here a day after WWE wrapped up its flagship live event, WrestleMania, in California. The corporate has been on the lookout for a buyer for several months. McMahon returned to WWE as chairman in January to oversee the trial. WWE has a market value of roughly $6.5 billion. Endeavor has a market capitalization of roughly $10 billion.
Transaction logic
The deal would bring together two of the biggest sports entertainment brands in the world.
Despite their significant differences – WWE offers scripted matches and soap opera-like stories, while the UFC presents genuinely brutal mixed martial arts bouts – the organizations share similarities in terms of content and culture. Several UFC fighters, including Ronda Rousey and Brock Lesnar, have fought for WWE before.
UFC champion and superstar Conor McGregor lauded the news of the pending deal on Sunday night. “Unbelievable. What an influence!” said in one tweetafter one other tweet with his flailing picture UFC and WWE championship belts.
WWE offers Endeavor shareholders a robust media and live events business, as well as a decade value of mental property. Last 12 months, the company generated $1.29 billion in revenue, mainly driven by a $1 billion media entity.
Endeavor “knows the business” of WWE, said Emanuel wa recorded investor presentation Monday. WWE’s media rights deals for traditional television and streaming are set to be renewed in the coming months. Endeavor owns talent agency WME and has used its expertise in media rights, celebrities and live events to extend UFC revenue to $1.3 billion last 12 months, by 20% greater than the 12 months before. Emanuel said the company plans to run “the same manual” with WWE.
“We’ve a successful track record with media rights,” said Emanuel. “WWE has the same scale to the UFC. In an asset universe of this magnitude, opportunity is rare and finite.”
ComcastNBCUniversal has existing cable TV AND streaming offer from WWE. Fox has as well separate media deal with WWE. Emanuel said the combined company could also explore recent opportunities for direct contact with the consumer.
The tip of the family business
Emanuel told CNBC that he had asked McMahon to remain with the combined company as executive chairman. McMahon said he needed no persuasion to remain with the family business for a long time.
McMahon’s father founded WWE in its original incarnation in the mid-Twentieth century. McMahon, who bought the company from his father in 1982, is the majority shareholder. Over the past 4 a long time, WWE has turn out to be a worldwide phenomenon, spawning stars such as Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.
“It’s an excellent day,” McMahon said. “Things must evolve. Family businesses must evolve for the right reasons.”
McMahon, 77, retired from the company in July after a series of revelations that over the years he had paid several women tens of millions of dollars to silence them about alleged affairs and misconduct. In the summer, WWE admitted that other entities were investigating silent payments. The Wall Street Journal reported on federal investigations into the matter.
McMahon’s daughter Stephanie McMahon became co-CEO with Khan. Paul Levesque, who is each the husband of Stephanie McMahon and the wrestler known as Triple H, took over creative duties from Vince McMahon.
Dana White appears at the post-fight UFC 282 press conference on December 10, 2022 at the T-Mobile Arena in Las Vegas, NV.
Amy Kaplan | Sportswire icon | Getty Images
Upon Vince McMahon’s return in January, Stephanie McMahon stepped down and Khan fully assumed the position of CEO. The elder McMahon recently entered right into a two-year employment contract, in line with submission of securities.
“I’ve made mistakes each personally and professionally,” McMahon admitted in an interview with CNBC.
McMahon told CNBC that he wouldn’t be “in the weed” with WWE’s creative decisions once the firms merged.
“Robust” process
Khan has been circulating the media in recent weeks to debate a possible sale. He told CNBC’s Morgan Brennan on Thursday that there was a “solid” process that attracted many interested buyers. Emanuel reiterated to CNBC that the sales process was “competitive”.
WWE also suits well with the cultures of Endeavor and the UFC, which also reflect the hard-edged styles of their leaders. McMahon, Emanuel and White are known for his or her oversized personalities, each with their devoted allies and harsh critics.
White individuals are no strangers to scandal either. Earlier this 12 months, a video surfaced of the UFC boss punching his wife during a public altercation at a Latest Yr’s Eve party in Mexico. He later apologized.
Disclosure: NBCUniversal is the parent company of CNBC.