WWE and UFC, the two biggest names in combat sports, are now under the same umbrella after a landscape-altering transaction.
Endeavor on Monday morning formally announced its acquisition of World Wrestling Entertainment. The agreement, rumored to be imminent over WrestleMania weekend, is now official with Endeavor set to take over 51% of WWE and the wrestling promotion's shareholders holding a 49% interest in the new company.
That new company will be a combination of WWE and UFC, two Endeavor assets. The WWE and UFC will form a new, publicly listed company once the deal is officially closed.
"This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed," Endeavor CEO Ariel Emanuel said in a statement Monday. "For decades, Vince (McMahon) 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."
The deal combining the two promotions is being touted as a company worth more than $21 billion. The deal valued WWE at $9.3 billion, with UFC valued at $12.1 billion.
Among the more fascinating details of the transaction is the dynamics of power within the new company and how it is tied to the three entities (Endeavor, WWE, UFC). Emmanuel will serve as the new company's CEO in addition to serving the same role with Endeavor. Vince McMahon will serve as the executive chairman of the new company and Dana White will remain in his role as UFC president. Nick Khan, who had been serving as the CEO of WWE will serve as president of WWE. Ultimately, an 11-member board will oversee the new company.
This transaction comes on the heels of a wildly successful weekend for WWE with a two-night WrestleMania show that took place at SoFi Stadium in Inglewood, Calif.
