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Less than 24 hours after the final bell of Wrestlemania 39, Endeavor has announced it has acquired World Wrestling Entertainment, WWE, and will combine it with the Ultimate Fighting Championship, UFC, which it also owns, to form a brand-new live entertainment company.
Endeavor–a Hollywood representation company that has worked with the National Football League, NFL, National Collegiate Athletic Association, NCAA, and more–and its shareholders will own 51% of the new company, while shareholders of WWE will own the remaining 49%. The new company created by this transaction will be valued at approximately $21.4 billion, with $12.1 billion of that value coming from UFC and the other $9.3 billion from WWE. The sale is expected to pass regulators and close by the end of 2023.
The new company will be led by Endeavor CEO Ariel Emanuel, who will also continue in that role. Vince McMahon, the creator of the WWE, will act as executive chairman of the board, and president and COO Mark Shapiro.
Ariel Emanuel, CEO of Endeavor, said: “This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed.
“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, executive chairman of WWE, added: “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 (£17bn) live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity.
“The new company will be well positioned to maximise the value of our combined media rights, enhance sponsorship monetisation, 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, ” he said.