WWE Sold To Endeavor, Company To Merge With UFC

Endeavor - the parent company of UFC - today announced that they have signed an agreement with WWE to form a new publicly listed company that will bring together UFC and WWE. Endeavor will hold a 51% controlling interest in the new company, while WWE shareholders will hold the other 49%.

The new company will be led by Endeavor CEO Ari Emanuel, who will be CEO of the new organisation. Vince McMahon will be Executive Chairman of the Board and Mark Shapiro will be President and COO of Endeavor and the new company. Dana White will remain in his role as President of UFC, while Nick Khan will serve as President of WWE. The new organisation's Board of Directors will have 11 members to be appointed at a later date. Six will be appointed by Endeavor and the remaining five by WWE. The merger is expected to be completed by the second half of 2023, according to the Hollywood Reporter.

The transaction means WWE will be sold at a value of $9.3 billion or $106 per share before any post-closing dividend. WWE and UFC will contribute cash to the new company to ensure it holds approximately $150 million.

As part of the deal, Endeavor "expects significant growth across revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality."

Ari Emanuel said: "This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed. 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."

Vince McMahon added:

"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. 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. The new company will be well-positioned to maximise the value of our combined media rights, enhance sponsorship monetisation, 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."

The sale of WWE comes after Vince McMahon forced his way back into WWE in January 2023 and was elected as Executive Chairman to facilitate a sale. He had previously resigned as CEO and Chairman in disgrace in July 2022 amidst a sexual misconduct and hush money scandal.