Following rumours last night about a WWE sale, it's been confirmed today that Endeavor Group Holdings, Inc. and World Wrestling Entertainment, Inc. have signed a "definitive agreement" to form a new, publicly listed company consisting of two sports and entertainment brands: UFC and WWE.
Endeavor will hold a 51% controlling interest in the new company, while existing WWE shareholders will hold a 49% interest.
"This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed," said Ariel Emanuel, CEO of Endeavor. "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."
Vince McMahon adds, "Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past seven years – 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."
"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," he continues. "The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands."
"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."
The new company will be led by Emanuel as Chief Executive Officer, who will also continue in his role as CEO of Endeavor. McMahon is now set to serve as Executive Chairman of the Board, while Mark Shapiro will be President and Chief Operating Officer of both Endeavor and the new company.
Dana White will continue in his role as President of UFC and Nick Khan will serve as President of WWE.
Interestingly, the transaction values UFC at an enterprise value of $12.1 billion and WWE at an enterprise value of $9.3 billion. That makes WWE worth more than what Disney paid for both Marvel and Star Wars combined.
What will a combined company that encompasses WWE and UFC look like? That remains to be seen.