The new company, which will house both WWE and UFC, will have a 51/49 control split in favor of Endeavor
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WWE merges with Endeavor, parent company of UFC, with valuation over $21 billion
The new company, which will house both WWE and UFC, will have a 51/49 control split in favor of Endeavor
Following months of speculation, a sale of WWE appears imminent. Endeavor, the parent company of UFC, has nearly finalized a deal to acquire WWE at a valuation of $9.3 billion, CNBC reported Sunday afternoon.
The deal will see Endeavor create a new, publicly traded company that will run both UFC and WWE. Endeavor/UFC would take a 51% ownership stake with WWE shareholders retaining 49% of the new company.
WWE executive chairman and long-time owner Vince McMahon, the largest current shareholder of WWE, will remain chairman of the WWE portion of the new company sitting only behind Endeavor founder and CEO Ari Emanuel. WWE CEO Nick Khan is expected to remain president of wrestling operations, while Dana White will continue to over UFC as its president.
"This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed," Emanuel said in a press release. "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."
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Even after resigning as chairman and CEO, McMahon remained WWE's largest shareholder. Unsurprising to many, he forced his way back into his chairman role in January. In the wake of that move, his daughter Stephanie McMahon, the interim chairman and co-CEO along with Khan, resigned from her position.
With a sudden desire to sell the company along with media rights negotiations about to open for WWE, McMahon announced his return in a press release as such: "The only way for WWE to fully capitalize on this opportunity is for me to return as Executive Chairman and support the management team in the negotiations for our media rights and to combine that with a review of strategic alternatives. My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder."