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 the 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's value at $9.3 billion.

The new business, which does not yet have a name, will be lead 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.

“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 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.

Ties 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 “The Rock” Johnson. The company, which changed its name to World Wrestling Federation and later World Wrestling Entertainment, hosted its first WrestleMania in 1985.

McMahon, in an interview with CNBC, addressed the notion that there was doubt among some WWE fans and industry experts that he would ever make a deal for the business. “It's the right time to do the right thing. And it's the next evolution of WWE,” he said.

The announcement of the WWE sale arrives after McMahon, 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.

McMahon acknowledged to CNBC that there were several suitors for WWE, but that combining with Endeavor is the right move.

“It makes all the sense in the world for all these synergies that we have to extract all of the value that we can out of the marketplace,” he explained.

Media industry analysts viewed WWE 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, WrestleMania, over the weekend. Last year, WWE booked revenue of $1.3 billion.

The company is also a social media powerhouse. It surpassed 16 billion social video views in the final quarter of last year. It has nearly 94 million YouTube subscribers and has 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 & 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 “TKO” ticker symbol. Its board will have 11 members, with six being appointed by Endeavor and five being appointed by WWE.

“We 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," wrote Jeffries analyst Randal Konik said 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, Connecticut, are up 33% this year, but fell 5% at the opening bell Monday. Shares of Endeavor, based in Beverly Hills, California, slipped less than 1%.

UPDATES: Adds McMahon comments from CNBC interview.

Share:
More In Sports
New Poll Reveals Sports Betting Doubled in 2021
Alex Silverman, senior reporter covering the business of sports at Morning Consult, joins Cheddar News to discuss why the number of those betting on sports doubled in 2021 and what's next for the industry in 2022.
Super Wild Card Weekend Preview
If you have not placed your buffalo wings order yet, hurry up. The biggest weekend in NFL playoff history kicks off in just under 48 hours with six games being played over three days. Sports Analyst at Yahoo Sports Pamela Maldonado joined Cheddar to give us a preview ahead of the Super Wild Card Weekend.
Beijing Olympics Sponsors Accused of Indifference Amid Human Rights Concerns
With the 2022 Winter Olympics in Beijing rapidly approaching, clouds of controversy continue to swirl around China's treatment of the Uyghur Muslim minority population, its surveillance state, and security for visiting athletes. Phelim Kine, China correspondent for Politico, joined Cheddar to break down the big storylines surrounding the Beijing Games and highlight what he saw as the complete disregard by top corporate sponsors like P&G, Airbnb, Intel, Visa, and Coca-Cola, for the controversies. "They spend $100 million for every Olympics that they sponsor, and they have frankly shown absolute willful indifference to any type of entreaty to essentially be more vocal about their concerns about human rights in China," he said. Kine also touched on the data privacy fears for athletes as visiting contingents are being told to carry burner phones to avoid security risks.
Longer NFL Season Boosted Revenue but Players Balked Over Safety Concerns
NFL games continue to be among some of the highest-rated programs on television. In 2021, viewership jumped 10 percent from the previous year to an average of 17.1 million as the league debuted its first 18-week season after running on a 16-week schedule since 1978. Fans — and team owners — welcomed the change with open arms, but a vocal percentage of players were not as ecstatic (despite the union signing off). Those who were against adding games cited health and safety concerns as their main reason. While the extended season means fatter pockets for the league, the opposition asks: is it worth the risk? Cheddar's JD Durkin breaks it all down.
Novak Djokovic Gets Australia Visa Revoked for Second Time
With the Australian Open set to begin on Monday, Novak Djokovic is once again being threatened with deportation from Australia after his visa was briefly reinstated and revoked again over alleged discrepancies. Djokovic’s team will sit for an Immigration hearing on Saturday.
Lindsey Vonn Discusses Mental Health in Her Memoir and the 2022 Winter Olympics
Decorated skier Lindsey Vonn did not hold back when touching on mental health in "Rise," her new memoir. "My mental health is definitely part of my story," she said. "Now I'm just thankful that this conversation is so much more talked about — Simone Biles, Naomi Osaka, Kevin Love, Michael Phelps, all have been outspoken about it." She noted that she felt happy that readers, particularly kids, get to see a vulnerable side to her in the book. The gold medalist also went on to note what she's most looking forward to watching in the 2022 Winter Olympics in Beijing.
Game On for Sports Betting in New York
It was 'game on' for sports bettors in the state of New York, as mobile betting kicked off on four major betting operating platforms Saturday. This comes at an exciting time for sports fans with some of the biggest NFL games of the season right around the corner. Cam Rogers - Host of Lock It In with Cam Rogers, Betting Analyst at the Bleav Podcast Network joined Cheddar's Opening Bell to discuss.
Victor Cruz Might Even Flip Burgers Himself for His Krystal Restaurants Franchise in NJ
Former wide receiver for the New York Giants, Victor Cruz has partnered with Krystal Restaurants, a popular burger chain in the South, to bring the franchise to his home state of New Jersey. Cruz and Alice Crowder, CMO of Krystal Restaurants, joined Cheddar's Opening Bell to discuss the venture. The five new locations will be known as "Victor Cruz's Krystal," decked out with memorabilia from his football career, with the former player explaining how "hands-on" he plans on being. "You never know, OK? You might walk in and Victor Cruz will be flipping a burger back there, and you might be getting it directly from the source," he said.
Sports Betting Industry Growth
Max Bichsel, vice president at Gambling.com Group joins Cheddar News to talk about the growing sports betting industry, New York legalizing mobile betting, and 2022 predictions for the sector.
Load More