• WWE News
  • AEW News
  • UFC News
  • NJPW News
  • Live Events
  • Contact
  • About
Facebook Instagram YouTube Twitter
Facebook Instagram YouTube Twitter
The Spotlight
Google News
Follow
  • HOME
  • WWE
  • AEW
  • UFC
  • NJPW
  • Live Events
  • About
The Spotlight
Home»WWE News»WWE Acquired By UFC Owner Endeavor Group Holdings
WWE News

WWE Acquired By UFC Owner Endeavor Group Holdings

By The SpotlightApril 3, 20236 Mins Read
Facebook Twitter Pinterest WhatsApp Telegram Email Reddit Tumblr LinkedIn VKontakte
Photo Credit: UFC/WWE

Vince McMahon purchased World Wrestling Entertainment from his father in 1982 and made it into a global phenomenon. For decades, WWE run by the McMahon family. However, it has now changed.

Today, WWE & Endeavor Group Holdings Inc announced that WWE and UFC have formed a new publicly traded business. The two companies have combinedly valued at $21.4 billion. The Endeavor Group gives WWE a business value of $9.3 billion while UFC is valued at $12.1 billion. The Endeavor Group will own 51% of the new company. The WWE shareholders would retain 49%.

The CEO of Endeavor Group Ari Emanuel will also serve as the Chief Executive Officer of the new publicly traded company. The President of Endeavor Group Mark Shapiro and the UFC President Dana White will remain in the same position.

Vince McMahon will serve as the Executive Chairman of the new company and Nick Khan will be the president of the wrestling entity.

Here’s the press release.

New, Publicly Listed Company to be 51% Owned by Endeavor and
49% by Existing WWE Shareholders

 Endeavor to Contribute UFC into Company at Enterprise Value of $12.1 Billion

BEVERLY HILLS, Calif. and STAMFORD, Conn. (April 3, 2023) – Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor”) and World Wrestling Entertainment, Inc. (NYSE: WWE) (“WWE”) today announced that they have signed a definitive agreement to form a new, publicly listed company consisting of two iconic, complementary, global sports and entertainment brands: UFC and WWE. Upon close, Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest in the new company.

Together, UFC and WWE will have global reach, impressive scale and omnichannel distribution. On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and a 10% annual revenue growth rate since 2019.

“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.”

“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,” said Vincent K. McMahon, Executive Chairman of WWE.

McMahon continued, “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. 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 (Chief Executive Officer), who will also continue in his role as Chief Executive Officer of Endeavor, McMahon (Executive Chairman of the Board) and Mark Shapiro, who 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. The Board of Directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.

Together, UFC and WWE expect to deliver an estimated $50 million to $100 million in annualized run rate cost synergies by leveraging, among other things, Endeavor’s back office and robust infrastructure. Endeavor also expects significant growth across revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality. Endeavor’s success at UFC, including increasing commercial opportunities that have driven more than 2x Adjusted EBITDA growth since its acquisition in late 2016, demonstrates the significant value creation opportunity and upside potential of having UFC and WWE under one roof.

Transaction Details and Approvals

The transaction values UFC at an enterprise value of $12.1 billion and WWE at an enterprise value of $9.3 billion. The transaction represents a contribution price of WWE of approximately $106 per share (before any post-closing dividend). Additionally, UFC and WWE will each contribute cash to the new company so that it holds approximately $150 million. At closing, Endeavor intends to sweep all excess cash at UFC, and shareholders of the new company (other than Endeavor) are expected to receive a post-closing dividend.

Under the terms of the transaction, existing WWE shareholders will roll all existing equity into the new entity that will be the parent company of UFC and WWE (“NewCo” until it is named at a later date) and intends to list on the New York Stock Exchange under the ticker symbol “TKO”. The listing of NewCo will expand the collective investor base to allow for broad market participation across Endeavor and NewCo.

The transaction has been unanimously approved by the Executive Committee of the Board of Directors of Endeavor and by the Board of Directors of WWE. The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. The transaction is expected to close in the second half of 2023.

This marks the successful conclusion of WWE’s strategic alternatives review process. WWE embarked on this process to take advantage of the company’s unique position in the entertainment ecosystem as well as the inflection point coming with its media rights renewals, both of which were widely recognized in the marketplace through this process.

We will update you when we receive more details. Stay tuned with The Spotlight for more news.

Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email Reddit
Previous ArticleTriple H Gives An Update On Shane McMahon’s Injury
Next Article Vince McMahon Comments On WWE & UFC Merger, Involvement With Creative

MORE FROM THE SPOTLIGHT

SPOILERS: WWE Star Loses Faith In Fellow Members, NXT Stars Debut On SmackDown

May 12, 2023

Robert Roode Undergoes Another Surgery

May 12, 2023

Edge Reveals How He Wants To End His WWE Career

May 11, 2023

Becky Lynch Says She Doesn’t Want To See Celebrities In WWE

May 11, 2023

Leave A Reply Cancel Reply

TRENDING

WWE Star Reportedly Elevated From Mid-Carder To Main Eventer After Backlash

The SpotlightMay 8, 2023

NXT Star Frustrated With WWE Creative

The SpotlightMay 10, 2023

SPOILERS: Big Return and Family Reunion Set For Tonight’s WWE RAW

The SpotlightMay 8, 2023

WWE Backlash 2023 Results

The SpotlightMay 6, 2023

SPOILER: WWE Creative Plans For Tonight’s RAW

The SpotlightMay 8, 2023

WWE Censored Bad Bunny’s WWF Jacket

The SpotlightMay 6, 2023

Drew McIntyre Reportedly Opposed To A WWE Creative Plan

The SpotlightMay 7, 2023

NEWSLETTER

Subscibe to get the latest professional wrestling news from The Spotlight.

Facebook Instagram YouTube Twitter
  • Home
  • About
  • Contact
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
© 2023 The Spotlight All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.

x
x