WWE and the company that runs Ultimate Fighting Championship will combine to create a $21.4 billion sports entertainment company.
A new publicly traded company will house UFC and World Wrestling Entertainment brands, with Endeavor Group Holdings Inc. taking a 51% controlling interest in the new company. Existing WWE shareholders will hold a 49% stake.
The companies put the enterprise value of UFC at $12.1 billion and WWE鈥檚 value at $9.3 billion.
The new business, which does not yet have a name, will be led by Endeavor CEO Ari Emanuel. Vince McMahon, executive chairman at WWE, will serve in the same role at the new company. Dana White will continue as president of UFC, and Nick Khan will be president at WWE.
鈥淭ogether, 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,鈥� McMahon said in a prepared statement Monday.
He also provided some idea of where the focus of the new company will be, saying that it will look to maximize the value of combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster their brands.
A synergy already exists talent-wise between WWE and UFC, with stars such as Brock Lesnar and Ronda Rousey crossing over between the two businesses.
The deal between Endeavor and WWE catapults WWE into a new era, after functioning as a family-run business for decades. McMahon purchased Capitol Wrestling from his father in 1982 and took the regional wrestling business to a national audience with the likes of wrestling stars such as Andre the Giant, Hulk Hogan and Dwayne 鈥淭he Rock鈥� Johnson. The company, which changed its name to World Wrestling Federation and later World Wrestling Entertainment, hosted its first WrestleMania in 1985.
鈥淚t鈥檚 just a really good business savvy move of saying, where do we go 30 years from now?鈥� said Rob Holub, an adjunct professor at the University of New Haven who specializes in sport management. As a company that鈥檚 decades old, Holub said, the WWE needs to ask, 鈥淲here do we go when we鈥檙e that far along of finding the next generation of fans?鈥�
The announcement of the WWE transaction arrives after , the founder and majority shareholder of WWE, returned to the company in January and said that it could be up for sale.
Rumors swirled about who would possibly be interested in buying WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia's Public Investment Fund all in the mix.
Media industry analysts viewed as an attractive target given its global reach and loyal fanbase, which includes everyone from minors to seniors and a wide range of incomes.
The company held its marquee event, , over the weekend. Last year, WWE booked revenue of $1.3 billion.
The company is also a . It surpassed 16 billion social video views in the final quarter of last year. It has nearly 94 million YouTube subscribers and more than 20 million followers on TikTok. Its female wrestlers comprise five out of the top 15 most followed female athletes in the world, across Facebook, Twitter and Instagram, led by Ronda Rousey with 36.1 million followers.
WWE had more than 7.5 billion digital and social media views in January and February of this year, up 15% from the same time frame a year ago.
The new company plans to trade on the New York Stock Exchange under the 鈥淭KO鈥� ticker symbol. Its board will have 11 members, with six being appointed by Endeavor and five being appointed by WWE.
鈥淲e like the assets of UFC and also WWE in a world where linear TV is losing market share to streaming, thus live sport content is in high demand,鈥� wrote Jeffries analyst Randal Konik in a note to clients.
The transaction, which was approved by the boards of Endeavor and WWE, is targeted to close in the second half of the year. It still needs regulatory approval.
Shares of World Wrestling Entertainment Inc., based in Stamford, 黑料吃瓜网, are up 33% this year but fell more than 6% before the opening bell on Monday. Shares of Endeavor, based in Beverly Hills, California, rose more than 4%.
This story has been updated. 黑料吃瓜网 Radio's Eddy Martinez contributed to this report.
