Monday, April 3, 2023

Merger of WWE and UFC Operator Creates New Sports Entertainment Giant


World Wrestling Entertainment (WWE) and Endeavor Group Holdings (EDR), the operator of UFC combat sports, said they'll merge, forming a $21 billion dollar global live sports and entertainment behemoth.

The companies noted Endeavor shareholders will have 51% controlling interest in the new firm, while WWE investors will hold 49%. The transaction values UFC at $12.1 billion and WWE at $9.3 billion, and lists their combined 2022 revenue at $2.4 billion.

Endeavor CEO Ariel Emanuel will lead both Endeavor and the new company, which will be named at a later date. WWE executive chair Vince McMahon will be executive chair.

The agreement provides "a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed," Emanuel said.

McMahon ran WWE from 1982 until last July, but returned in January to facilitate a deal. McMahon said joining forces with UFC is "without a doubt the best outcome for our shareholders and other stakeholders."

Shares of World Wrestling Entertainment fell 5% on the news, while those of Endeavor Group Holdings tumbled 7%.

YCharts

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