Vince McMahon’s World Wrestling Entertainment has agreed to merge with the UFC to form a new public company controlled by Endeavor Group, the two companies announced Monday morning.

Endeavor will own 51% of the new martial arts and entertainment company, while WWE shareholders will own the remaining 49% under the terms of the transaction. THE The deal values ​​WWE at $9.3 billion And ufcthat Endeavor heard, at $12.1 billionthe companies announced in a press release.

According to CNBC, the transaction is expected to close in the second half of 2023. Shares of WWE fell more than 2% on Monday and Endeavor fell more than 5%.

THE Ari Emmanuel will serve as chief executive of both Endeavor and the new company, the companies said. THE McMahonwill also serve as Executive Chairman while President and COO of Endeavor, Markus Shapiro, will also hold the same functions in the new company. THE Dana White remains President of the UFC and Nick KhanCEO of WWE, remains president of the wrestling business.

“This is going to be UFC 2.0,” Emanuel said in an interview that aired Monday on CNBC’s Squawk on the Street.

The board of directors will consist of 11 individuals, six of whom will be appointed by Endeavor and five by WWE. The name of the combined company will be announced at a later date. The company trades on the New York Stock Exchange under the symbol TKO.

The announcement came a day after WWE’s flagship live event, WrestleMania, concluded in California.

According to CNBC, the company has been looking for a buyer for the past few months. McMahon returned to WWE in January as chairman to oversee the process. WWE has a market valuation of approximately $6.5 billion. Endeavor has a market cap of approximately $10 billion.

The logic of the agreement

The deal brings together two of the biggest sports entertainment brands in the world.

Despite their notable differences — WWE offers scripted matches and soap opera-like storylines, while UFC offers authentically violent mixed martial arts fights — the two companies share similarities in terms of content and culture. Several UFC fighters, including Ronda Rousey and Brock Lesnar, have wrestled for WWE.

UFC champion and superstar Conor McGregor welcomed news of the upcoming deal on Sunday night. “Incredible. What power!” he said in a tweet, followed by another tweet that included a picture of him wearing the UFC and WWE Championship belts.

The WWE offers Endeavor shareholders a robust media and live events business and decades of intellectual property. The company stopped last year Revenue of $1.29 billionwhich mainly stemmed from the $1 billion media unit.

Endeavor “knows the business” of WWE, Emanuel said Monday in a taped presentation to investors. WWE’s traditional television and streaming media rights deals are up for renewal in the coming months.

Endeavor owns talent agency WME and leveraged their expertise in media rights, celebrity and live events increased UFC revenue to $1.3 billion last year, up 20% year-on-year. The company plans to implement “the same playbook” as WWE‘ said Emmanuel.

“We have a track record with media rights,” said Emanuel. “WWE is similar in size to UFC. In the universe of assets of this magnitude, opportunities are rare and finite.”

Source: NEWS247