Cover Photo Courtesy: Post Wrestling
On Monday, UFC parent company Endeavor announced that WWE and UFC would be merging to form a new company, with the deal valuing WWE at $9.3 billion and UFC at $12.1 billion. The announcement comes after WWE finished its WrestleMania event in California last weekend, which broke previous WrestleMania records for all-time viewership, social media, sponsorship, and merchandise.
Ari Emanuel, the CEO of Endeavor, stated in a press release; “This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed…we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”
Ari Emanuel, CEO of Endeavor, Photo Courtesy: Bloomberg
Vince McMahon, Executive Chairman of WWE, and former CEO, stated in the press release; “Given the incredible work that Ari and Endeavor have done to grow the UFC brand…and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders.”
McMahon would talk more about the company, with the main focus of the company being to increase the value of their combined media rights, create different types of content, and have more mergers and acquisitions in the future under the new company.
“Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity…I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level.” McMahon further stated.
Vince McMahon, Executive Chairman of WWE and Former CEO. Photo Courtesy: Bleacher Report
The new company, whose name has not yet been revealed (although will be traded under the ticker “TKO” through the NYSE), will be led by Emanuel as CEO while still remaining CEO at Endeavor, McMahon as Executive Chairman, and Mark Shapiro, who will be the COO and President of Endeavor as well as the new company.
There have been many concerns amongst shareholders as well as fans of both WWE and UFC about the merger, with WWE and Endeavor shares dropping the morning the merger was announced. McMahon responded to these claims in an interview with CNBC, stating that; “It’s the right time to do the right thing. And it’s the next evolution of WWE.”
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