WWE and UFC Agreed On $21 Billion Deal

Scott Peters
03 Apr, 2023
New York City

Endeavor Group Holdings, Inc the media and entertainment ,company, agreed to spin off its Ultimate Fighting Championship unit and merge it with World Wrestling Entertainment Inc in a deal worth $21 billion. 

The newly merged company would be 51% controlled by Endeavor and 49% by WWE shareholders. 

The transaction values UFC at an enterprise value of $12.1 billion and WWE for $9.3 billion. 

In 2022, WWE generated $1.3 billion in revenue and $195 million net income or diluted earnings per share of $2.29. 

Merged companies are estimated to deliver cost synergies between $50 million and $100 million a year, leveraging media rights, ticket sales and yield management. 

Culturally two media companies are similar, while WWE fights are scripted the UFC fights are "not fake" according to athletic commission and often end with a submission or a knockout which is not staged.  

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.

Ari Emanuel will act chief executive of both Endeavor and the newly merged company and Vince McMahon will be executive chairman. 

The board of directors will consist of 11 members, six will be appointed by Endeavor and five by WWE.

The new company will be named later and intends to list on the New York Stock Exchange under the ticker symbol TKO. 

The proposed transaction has been approved by the board of directors of both companies, including certain regulatory approvals.

The deal between the two companies is expected to be completed in the second half of 2023. 

Morgan Stanley and Goldman Sachs are serving as financial advisors to Endeavor, and Latham & Watkins is serving as legal advisor to Endeavor.

 The Raine Group is acting as lead financial advisor to WWE. 

J.P. Morgan and Moelis & Company are also acting as financial advisors to WWE.