WWE Agrees To Merge With UFC To Create New Company Valued At $21.4 Billion
The mega 'UFC-WWE merger' might affect positions of WWE's Vince McMahon and UFC in-charge Dana White but an official confirmation is awaited on this.
UFC-WWE Merger: Ari Emanuel’s Endeavor-owned Ultimate Fighting Championship (UFC) and billionaire Vince McMahon-owned World Wrestling Entertainment (WWE) will be merging under one house, reportedly known as $TKO, to form a new, publicly listed company.
Reports suggest that in the aftermath of this historic deal, WWE will be valued at $9.3 billion while UFC is valued at $12.1 billion. Also, the merger might affect positions of WWE's Vince McMahon and UFC in-charge Dana White but an official confirmation is awaited on this. The goal of this deal is to combine WWE and UFC to create a $21.4 billion sports company. Endeavor Group will hold 51 percent stake in the new publicly traded company, while WWE will retain 49 percent stake. Shares of World Wrestling Entertainment, Inc. (WWE) fell 4% in premarket trading on the news, while Endeavor shares rose 7%.
In an official release, Endeavor CEO Ari Emanuel announced the news of the merger.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” Emanuel said.
“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.”
As per the release, 11 members of the board of directors — six selected by UFC and five by WWE - will be named on a later date.
“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 added in the joint statement by WWE and UFC.
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