World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) will staff as much as kind a brand new firm in a blockbuster deal introduced Monday.
Endeavor Group Holdings Inc., which already runs mixed-martial arts promoter UFC, will take a 51 per cent stake in WWE, whereas present shareholders of the publicly traded firm will retain 49 per cent management.
WWE’s govt chairman Vince McMahon, who made a return to the corporate in January to steer talks for a sale after stepping down amid sexual misconduct allegations final yr, will stay chair of the board on the newly merged firm. UFC president Dana White will retain his function, Nick Khan will transition from CEO to president of WWE, and Endeavor CEO Ariel Emanuel will maintain the identical function within the newly merged firm.
The deal values UFC at US$21.3 billion and WWE at US$9.3 billion. Last yr, WWE booked income of US$1.3 billion.
Rumours swirled about who may be all for shopping for WWE, with chatter specializing in firms akin to Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund.
Media business analysts considered WWE as a sexy acquisition goal given its world attain and constant fanbase, which incorporates everybody from minors to seniors and a variety of incomes.
The take care of UFC comes a day after WWE’s marquee occasion, WrestleMania, ran over two nights at SoFi Stadium in Los Angeles.
The weekend’s matches included performances from not solely WWE mainstays akin to Roman Reigns, Rey Mysterio, John Cena and Cody Rhodes, but in addition mainstream stars together with social media influencers Logan Paul and KSI, pop superstars Snoop Dogg and Bad Bunny and San Francisco 49ers tight finish George Kittle.
Canadian wrestlers Edge, Trish Stratus, Sami Zayn and Kevin Owens had been additionally among the many top-billed combatants at WrestleMania 39.
A synergy already exists expertise sensible between WWE and UFC, with stars akin to Brock Lesnar and Ronda Rousey crossing over between the 2 companies.
The new firm, which doesn’t but have a reputation, plans to commerce on the New York Stock Exchange beneath the “TKO” ticker image. Its board can have 11 members, with six being appointed by Endeavor and 5 being appointed by WWE.
The transaction, which was authorized by the boards of Endeavor and WWE, is focused to shut within the second half of the yr.
Shares of World Wrestling Entertainment Inc., primarily based in Stamford, Conn., fell six per cent earlier than the opening bell. Shares of Endeavor, primarily based in Beverly Hills, California, rose almost 4 per cent.
— with information from Associated Press
© 2023 Global News, a division of Corus Entertainment Inc.