WWE and the corporate that runs Ultimate Fighting Championship will mix to create a $21.4 US billion sports activities leisure firm.
A brand new publicly traded firm might be shaped that homes the UFC and WWE manufacturers, with Endeavor Group Holdings Inc. taking a 51 per cent controlling curiosity within the new firm. Existing WWE shareholders will maintain a 49 per cent stake.
The corporations put the enterprise worth of UFC at $12.1 billion and WWE’s worth at $9.3 billion.
The new enterprise, which doesn’t but have a reputation, might be led by Endeavor CEO Ari Emanuel. Vince McMahon, government chairman at WWE, will serve in the identical function on the new firm. Dana White will proceed as president of UFC and Nick Khan might be president at WWE.
“Together, we might be a $21+ billion stay sports activities and leisure powerhouse with a collective fanbase of greater than a billion folks and an thrilling progress alternative,” McMahon stated in a ready assertion Monday.
He additionally supplied some concept of the place the main focus of the brand new firm might be, saying that it’ll look to maximise the worth of mixed media rights, improve sponsorship monetization, develop new types of content material and pursue different strategic mergers and acquisitions to additional bolster their manufacturers.
The announcement arrives after McMahon, the founder and majority shareholder of WWE, returned to the corporate in January and stated that it may very well be up on the market.
Rumors swirled about who may be considering shopping for WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund all within the combine.
WWE a horny acquisition
Media trade analysts seen WWE as a horny acquisition goal given its international attain and constant fanbase, which incorporates everybody from minors to seniors and a variety of incomes.
The firm held its marquee occasion, WrestleMania, over the weekend. Last yr, WWE booked income of $1.3 billion.
The firm can be a social media powerhouse. It surpassed 16 billion social video views within the last quarter of final yr. It has almost 94 million YouTube subscribers and has greater than 20 million followers on TikTok. Its feminine wrestlers comprise 5 out of the highest 15 most adopted feminine athletes on this planet, throughout Facebook, Twitter & Instagram, led by Ronda Rousey with 36.1 million followers.
WWE had greater than 7.5 billion digital and social media views in January and February of this yr, up 15% from the identical timeframe a yr in the past.
The new firm plans to commerce on the New York Stock Exchange underneath the “TKO” ticker image. Its board may have 11 members, with six being appointed by Endeavor and 5 being appointed by WWE.
“We just like the belongings of UFC and likewise WWE in a world the place linear TV is shedding market share to streaming, thus stay sport content material is in excessive demand,” wrote Jeffries analyst Randal Konik stated in a word to shoppers.
The transaction, which was accredited by the boards of Endeavor and WWE, is focused to shut within the second half of the yr. It nonetheless wants regulatory approval.
Shares of World Wrestling Entertainment Inc., primarily based in Stamford, Conn., fell greater than 8 per cent earlier than the opening bell. Shares of Endeavor, primarily based in Beverly Hills, California, rose almost 3 per cent.
