WWE and UFC are combining in a deal from Endeavor Group Holdings Inc. to form a company that’s valued at just over $21 billion.
The official announcement was made on Monday. The new company has yet to have decided on a name and will be referred to as “NewCo” until one has been picked.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” Ariel Emanuel, CEO of Endeavor, said in a statement. “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.”
According to a press release, Endeavor will own a 51 percent stake while WWE shareholders will have a 49 percent stake. The deal saw WWE valued at $9.3 billion and UFC at $12.1 billion. UFC is owned by Endeavor.
“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,” Vincent McMahon, executive chairman of WWE. said of the deal.
He 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.”
McMahon will now serve as the executive chairman of the board while Dana White will continue in his role as president of UFC.
Many took to social media to comment on news of the deal, including Conor McGregor.