WWE will no longer be a family business.
On April 3, Endeavor announced it will buy WWE and will combine it with UFC to form a global live sports and entertainment company.
Endeavor and WWE announced a “definitive agreement” that will see Endeavor will hold a 51% controlling interest in the new company, while WWE shareholders will hold a 49% interest.
“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. “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 Vincent K. McMahon, Executive Chairman of WWE.
McMahon continued, “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.”
Emanuel will serve as Chief Executive Officer of the new company, while McMahon will serve as Executive Chairman of the Board for WWE. Mark Shapiro will be President and Chief Operating Officer of both Endeavor and the new company, while Dana White and Nick Khan will stay in their respective roles as President of UFC and President of WWE. A Board of Directors will be announced at a later date.
The transaction, which values UFC at an enterprise value of $12.1 billion and WWE at an enterprise value of $9.3 billion, has been unanimously approved by Endeavor and WWE’s respective board of directors.
The sale is expected to close in the second half of 2023.
