After reports emerged late last week that a deal was in the works, it has now been confirmed that WWE is set for a merger with Endeavor Group’s UFC to form a new publicly traded company.
Upon the deal being finalized, Endeavor will hold a 51% majority interest in the new company, with the remaining 49% made up of WWE’s existing shareholders.
In the press release announcing the merger, Ariel Emanuel, Endeavor’s CEO released a statement on the news. He 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, the now former owner of WWE, would add his own comments on the news, dubbing the merger, “The best outcome for our shareholders and other stakeholders.”
“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,” said McMahon.
“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 continued. “The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, 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 new company is yet to be named and will be led by Ariel Emanuel, Vince McMahon, and Mark Shapiro, with Emanuel working as CEO, McMahon as executive chairman, and Shapiro as president and COO (Chief Operating Officer). The statement also confirmed that both Dana White and Nick Khan will continue in their roles as presidents of both UFC and WWE respectively. Whilst an 11-person strong board of directors will be appointed at a later date, with six members appointed by Endeavor and the remaining 5 by WWE.
The full SEC filing for WWE’s merger can be found here, whilst WWE and UFC’s joint press release can be found here.
