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According to a report by CNBC, World Wrestling Entertainment (WWE) is currently in advanced talks to be acquired by Endeavor Group, the parent company of the Ultimate Fighting Championship (UFC). Citing sources familiar with the matter, CNBC reports that the deal could be announced as soon as Monday, and that UFC and WWE are expected to form a new publicly traded company as part of the agreement. The sources, who declined to be named due to the confidential nature of the discussions, also revealed that Endeavor is set to own 51% of the new company, while WWE shareholders would retain 49%. This deal values WWE at $9.3 billion.
It is anticipated that both Vince McMahon, the chairman of WWE, and Ari Emanuel, the CEO of Endeavor, will have executive positions within the new company. McMahon is expected to serve as executive chairman, while Emanuel will be the chief executive. Furthermore, Mark Shapiro, Endeavor’s president, will work in the same role at the new company. Dana White will remain as the president of UFC, while Nick Khan, WWE’s CEO, will be the president of the wrestling business.
According to the same report, Endeavor-WWE deal will effectively end WWE’s decades-old status as a family-run business. Vince McMahon’s father founded WWE in the mid-20th century, and McMahon himself is the controlling shareholder in the company. Since purchasing the business from his father in 1982, the company has grown into a global phenomenon, producing stars such as Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista, and John Cena.
Endeavor’s acquisition of WWE comes after months of speculation regarding a potential sale. McMahon returned to the company in January to oversee the process. WWE’s shares have risen by over 33% this year, with a market value of more than $6.79 billion.
If the acquisition goes ahead, it will create a new company with an enterprise value of $12 billion. This is because UFC has been a lucrative business for Endeavor, and last year, the MMA league helped Endeavor’s sports business make $1.3 billion in revenue. As of Friday’s close, Endeavor’s market cap was around $10.53 billion.
At a press conference following Wrestlemania 39, Nick Hausman of Haus of Wrestling asked Roman Reigns and Paul Heyman about the news of WWE’s potential acquisition by Endeavor Group. Reigns mentioned that he was occupied with his match and did not provide any further comments on the matter. Heyman, on the other hand, did not offer a response to the question.
HOLY SHIT WATCH THIS. Nick Hausman asked about the WWE/Endeavor REPORTS and PAUL HEYMAN’s RESPONSE!!!!!
ALLUDES TO CM PUNK ALL OUT SCRUM!!!! #WrestleMania #WrestleMania39 pic.twitter.com/msLPz70fQT
— Denise 'Hollywood' Salcedo (@_denisesalcedo) April 3, 2023
