World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) have announced they will merge to create a $21 billion (Ksh. 2.8 trillion) sports entertainment giant.
A new publicly traded company will house UFC and WWE brands, with Endeavor Group Holdings Inc (UFC’s owners) taking a 51 percent controlling interest in the new company. Existing WWE shareholders will get a 49 percent stake.
The deal unites two of the biggest names in wrestling and entertainment and caps a months-long sale process for WWE, overseen by its co-founder and executive chairman Vince McMahon, who returned to the company’s board in January.
McMahon will retain his role in the new company, which does not yet have a name.
Ari Emanuel will act as chief executive of both Endeavor and the new company, the companies said. McMahon, likewise, will be executive chairman, while Endeavor President and COO Mark Shapiro will also work in the same roles at the new company. Dana White will remain as president of UFC, and WWE CEO Nick Khan will stay on as president of the wrestling business.
The companies put the enterprise value of UFC at $12.1 billion and WWE’s value at $9.3 billion. “It’s a great day,” said McMahon. “Things have to evolve. Family businesses have to evolve for all the right reasons.”
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“This is a once-in-a-lifetime opportunity to bring together two leading pure-play sports and entertainment companies,” Endeavor CEO Ari Emanuel said in an investor presentation, describing the deal as a “transformational step” for Endeavor. Emanuel said he will lead as chief executive officer while continuing in his role at Endeavor.
The board will consist of 11 people, six appointed by Endeavor and five by WWE. The merged company’s name will be announced at a later time. The company will trade on the New York Stock Exchange under the ticker symbol TKO.
Despite notable differences – WWE features scripted matches and soap opera-like storylines, while UFC showcases authentically brutal mixed martial arts fighting – the organizations share similarities in terms of content and culture. Several UFC fighters, including Ronda Rousey and Brock Lesnar, have already wrestled for WWE.