UFC and WWE to merge in a deal worth $21 billion
At the end of 2023, we will witness the completion of the deal between the two companies that own the UFC and WWE brands. UFC has a market value of $12.1 billion and WWE $9.3 billion.
The well-known brands are owned by Endeavor (UFC) and World Wrestling Entertainment (WWE), which are merging into a new publicly traded company. Endeavor will own a 51% majority stake in the new company and WWE the remaining 49% of the shares.
The merger between UFC and WWE is expected to reduce annual expenses by between $50 million and $100 million by using Endeavor’s infrastructure.
Endeavor expects significant growth in all revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorships, licensing, etc.
The CEO of the new company will be Ariel Emanuel (currently CEO of Endeavor), Vince McMahon will lead the board of directors and Mark Shapiro will serve as COO of both the newly acquired company and Endeavor. Dana White will remain President of UFC and Nick Khan President of WWE, and the new company’s board will have 11 members, six appointed by Endeavor and six by WWE.
The transaction is subject to the satisfaction of customary closing conditions, including receipt of necessary regulatory approvals. The listing of the new company, which is currently called NewCo until a new name is chosen, will expand the collective investor base to allow for broad market participation across Endeavor and NewCo. Upon satisfaction of all conditions and closing of the merger, the new resulting company is targeted for listing on the New York Stock Exchange.
source: gamblingnews