UFC's parent company, Endeavor, is reportedly close to reaching an agreement to acquire WWE for $9.3 billion, as reported by CNBC on Sunday. In recent months, there has been a lot of speculation that WWE may be sold.
To manage both the organizations, Endeavor will create a new publicly traded company as part of the deal. WWE shareholders would own 49% of the combined company and Endeavor/UFC would possess 51% if the merger goes through as planned. According to CNBC, WWE's purchase could be announced as soon as Monday.
The partnership with the world leader in MMA has proven very profitable for Endeavor. With the support of the world's premier MMA organization, Endeavor's sports division was able to bring in $1.3 billion in income last year. Endeavor's market value was around $10.53 billion on Friday. The UFC has been valued at more than $12 billion in the Endeavor-WWE agreement.
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CEO Ari Emanuel will remain in charge of both entities. American holding company president Mark Shapiro and WWE CEO Vince McMahon will share the role of executive chairman. While Dana White will remain in his role as the MMA organization's president, WWE CEO Nick Khan will take over the professional wrestling organization.
The Endeavor-WWE deal could prove to be a success for the American holding company thanks to WWE's thriving media and live events business and decades' worth of intellectual property. Last year, the company made $1.29 billion, with the media unit contributing $1 billion.
ESPN became the exclusive home of the UFC's pay-per-views after signing a five-year broadcast deal in 2019. The contract is up for renewal at the end of 2023, around when WWE's television rights contracts with NBCUniversal and Fox will also expire.
Conor McGregor lauds UFC amidst talks of Endeavor-WWE deal
CNBC reported on Sunday that Endeavor, is close to acquiring WWE. Combining two sports and combat entertainment titans into a single business can prove to be monumental for the American holding company.
The Wall Street Journal reports that the sale will give Endeavor a 51% ownership stake in the WWE, valued at $9.3 billion. The value of WWE stock has increased by 33% in 2023, as reported by the publication.
Conor McGregor reacted to the news on Twitter with his trademark witticism. In his congratulatory message, he even managed to plug his whisky company:
"Congrats to the @ufc now worth a cool Proper $12bn. Wow! Endeavor bout to scoop the @WWE now also. Incredible. What a powerhouse!"
Check out the tweet below: