WWE & UFC will merge into a new $12 billion company under the terms of a deal with Endeavor. Vince McMahon will remain Executive Chairman.
Following a report from CNBC yesterday claiming WWE and UFC would merge as UFC parent Endeavor purchased WWE, Endeavor officially announced the deal Monday morning, valuing the newly combined companies at $21 billion. The terms of the deal are basically what was reported over the weekend. Endeavor will own 51% of the new company, with WWE shareholders owning 49%. The company will be publicly traded and valued at a combined $21 billion. Vince McMahon will remain on board.
The press release confirms the new leadership structure:
The new company will be led by Emanuel (Chief Executive Officer), who will also continue in his role as Chief Executive Officer of Endeavor, McMahon (Executive Chairman of the Board) and Mark Shapiro, who will be President and Chief Operating Officer of both Endeavor and the new company. Dana White will continue in his role as President of UFC and Nick Khan will serve as President of WWE. The Board of Directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Ariel Emanuel, CEO of Endeavor in the press release. “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.”
“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. 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.”
This caps off an interesting year for McMahon, which saw him resign as Chairman, CEO, and Head of Creative from WWE in 2022 amid a hush money payments scandal, only to return like a phoenix from the ashes (or more like a cockroach after a nuclear blast) in early 2023. Believing he received bad advice when he agreed to retire as the company’s board investigated payments to women who made sexual misconduct claims against McMahon, he used his majority voting power as a stockholder to reverse the decision. He appointed himself Executive Chairman, ousted two board members, and replaced them with his loyalists, even causing his own daughter, Stephanie McMahon, to resign, tightening his grip on power. McMahon then initiated the sale process that, if this report is to be believed, could culminate as soon as Monday. While McMahon has supposedly kept his fingers out of the creative pie since returning, many feel there have been some signs of his influence in the book. He was recently spotted at WWE Raw and WrestleMania weekend sporting a bad hair dye job and a Howard Hughes mustache.
From the press release, here’s what the new company hopes to achieve financially:
Together, UFC and WWE expect to deliver an estimated $50 million to $100 million in annualized run rate cost synergies by leveraging, among other things, Endeavor’s back office and robust infrastructure. Endeavor also expects significant growth across revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality. Endeavor’s success at UFC, including increasing commercial opportunities that have driven more than 2x Adjusted EBITDA growth since its acquisition in late 2016, demonstrates the significant value creation opportunity and upside potential of having UFC and WWE under one roof.
Endeavor and WWE will discuss the deal in a webcast today at 8 AM Eastern. You can read the full press release here and SEC filings here and here.
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