Today, @Endeavor
announced it has signed an agreement to form a $21+ billion global
live sports and entertainment company made up of @UFC and
@WWE.
https://t.co/lPrkBmKJXm
pic.twitter.com/ZBk95c5exU— Endeavor (@Endeavor)
April 3, 2023
The Ultimate Fighting Championship and World Wrestlling
Entertainment are about to be under the same ownership
umbrella.
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Endeavor, the parent company of the UFC, has purchased WWE and will
form a new publicly traded company with the two organizations. As a
result of the agreement, Endeavor will own 51% of the new combat
sports entertainment company, while WWE shareholders get a 49%
stake. CNBC
was first to report the sale.
Endeavor CEO Ari Emanuel will be the chief executive of the new
company, while former WWE owner Vince McMahon will serve as
executive chairman. Endeavor president Mark Shapiro takes over the
same role at the new company; Dana White will remain UFC president
and WWE CEO Nick Khan will oversee the wrestling organization.
“This is a rare opportunity to create a global live sports and
entertainment pureplay built for where the industry is headed,”
Emanuel said in a release. “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 merger will result in a combat sports entertainment
organization valued at $21.4 billion in total, according to a
release (The UFC has a value of $12.1 billion; while the WWE checks
in at $9.3 billion). The UFC and WWE earned $2.4 billion combined
at the end of 2022 and have achieved 10% annual revenue growth
since 2019.
“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,” McMahon said.
“Together, we will be a $21+ billion live sports and entertainment
powerhouse with a collective fanbase of more than a billion people
and an exciting growth opportunity,” McMahon continued. “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.”
With the merger, Endeavor is expecting “significant growth” in the
following areas: domestic and international media rights, ticket
sales and yield optimization, event operations, sponsorship,
licensing and premium hospitality. The transaction is expected to
officially close in the second half of 2023. The new entity will
operate under the moniker “NewCo” until it is renamed at a later
date, per a release.
White had a positive reaction to the merger in a statement released
on Monday.
“This company has been on fire for the last seven years and now
that we will be adding WWE to the portfolio, I am excited to take
this to another level,” White said.
“Vince is a savage in the wrestling space. Ari is a beast at what
he does and then add what we at UFC bring to the table and there is
no limit to what this company can accomplish in the next few
years.”