WWE is sold to the Endeavor Group, which also owns the UFC, in a deal that values the company at $9.3BILLION and will see them merge in a sensational acquisition.
- Endeavor Group has announced that it is ready to acquire WWE in a sensational deal
- The acquisition by Endeavor, the parent company of the UFC, values WWE at £7.53 billion.
- After the merger, a new company will be created that will be listed on the New York Stock Exchange
Endeavor Group Holdings Inc said on Monday it would acquire entertainment firm World Wrestling Entertainment Inc in a deal that values the wrestling company at $9.3bn (£7.53BN).
WWE shares fell 4.5 percent before the bell, while Endeavor, the parent of the popular UFC mixed martial arts franchise, rose 4 percent.
Under the deal, Endeavor shareholders will own 51 percent of the combined company, while WWE shareholders will get 49 percent.
The UFC and WWE will merge to form a new commercial company listed on the New York Stock Exchange in the process.
Ariel Emanuel, CEO of Endeavour, which owns the UFC, said: “This is a unique opportunity to create a pure game of global live sports and entertainment built for where the industry is going.”
Endeavour, the parent company of the UFC, agrees to merge with WWE in a deal that values the wrestling company at £7.53 billion.
“Over decades, Vince and his team have demonstrated an incredible track record of innovation and creating shareholder value, and we are confident that Endeavor can deliver significant additional shareholder value by bringing the UFC and WWE together.”
Vince McMahon, WWE Executive Chairman, added: “Given the incredible work that Ari and Endeavor have done to grow the UFC brand, nearly doubling its revenue over the last seven years, and the immense success we’ve already had in partnering with their team on a number of projects, I believe this is undoubtedly the best outcome for our shareholders and other stakeholders.
“Together, we will be a $21bn (£17bn) live sports and entertainment powerhouse with a collective fan base of over a billion people and an exciting opportunity for growth.
“The new company will be well positioned to maximize the value of our combined media rights, improve sponsorship monetization, develop new forms of content and pursue other strategic M&As to further bolster our strong brand stability.
“I, along with the current WWE management team, look forward to working closely with Ari and the teams at Endeavor and the UFC to take business to the next level.”
McMahon will remain involved with WWE as Executive Chairman of the new company, while Emmanuel will serve as CEO. Meanwhile, Dana White will retain his position as UFC president.
The wrestling boss returned to WWE as chairman in January to help oversee the sale of the company.
He helped transform the combat sport into a worldwide phenomenon after purchasing WWE from his father, Vince McMahon Sr, in 1982.
However, the agreement to sell WWE to Endeavor will end the status of a family business under the leadership of the McMahons.
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