WWE And UFC To Merge, Creating New Company Valued At $21.4 Billion

On Monday morning, it was announced that World Wrestling Entertainment (WWE) and the Ultimate Fighting Championship (UFC) will merge to form a new publicly traded company controlled by Endeavor Group. Endeavour will own a 51% stake in the new company, while WWE shareholders will hold the remaining 49%. The deal values WWE at $9.3 billion and UFC at $12.1 billion. The merged company's name will be announced at a later time, and the board will consist of 11 people, with six appointed by Endeavor and five by WWE.

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Today, @Endeavor announced it has signed an agreement to form a $21+ billion global live sports and entertainment company made up of @UFC and @WWE. https://t.co/lPrkBmKJXm pic.twitter.com/ZBk95c5exU

— Endeavor (@Endeavor) April 3, 2023

Ari Emanuel, the CEO of Endeavor, will act as the chief executive of both Endeavor and the new company, with Vince McMahon as executive chairman. Dana White will remain as president of UFC, and WWE CEO Nick Khan will stay on as president of the wrestling business. The merged company will bring together two of the biggest sports entertainment brands in the world, despite the differences in their content and culture. UFC features authentically brutal mixed martial arts fighting, while WWE features scripted matches and soap opera-like storylines.

The announcement confirmed an earlier CNBC report and came a day after WWE's flagship live event, WrestleMania, in California. The company has spent several months looking for a buyer, and McMahon returned as chairman in January to oversee the process. Shares of WWE are up more than 33% this year, giving it a market value of more than $6.79 billion.
The merger will also conclude WWE's decades-long run as a family business, as McMahon's father founded the company in its original incarnation during the middle of the 20th century. Over the past four decades, WWE has grown into a global phenomenon, spawning breakout stars such as Hulk Hogan, Dwayne "The Rock" Johnson, Dave Bautista, and John Cena.

The merged company will offer Endeavor's shareholders a muscular media and live events business, as well as decades worth of intellectual property. WWE generated $1.29 billion in revenue last year, driven mainly by its $1 billion media unit. UFC helped its parent company's sports business make $1.3 billion in revenue last year.

The cultures of Endeavor, UFC, and WWE fit well together, as they reflect the hard-edged styles of their leaders. McMahon, Emanuel, and White are known for their outsized personalities, and each has their share of devoted allies and harsh critics. White has also faced scandal earlier this year, as a video emerged showing him slapping his wife during a public argument at a New Year's Eve party in Mexico. He later apologized.

Overall, the merger between WWE and UFC is expected to bring together two of the biggest names in sports entertainment and create a new publicly traded company controlled by Endeavor Group. The deal values WWE at $9.3 billion and UFC at $12.1 billion, with Ari Emanuel acting as CEO and Vince McMahon as executive chairman. The merger will offer Endeavor's shareholders a muscular media and live events business, as well as decades worth of intellectual property.