Endeavor in talks to buy World Wresting Entertainment -sources

Endeavor Group Holdings Inc, the parent of the popular UFC mixed martial arts franchise, is in talks to acquire World Wrestling Entertainment Inc (WWE) in an all-stock deal, according to people familiar with the matter.

The sources requested anonymity because the matter is confidential. Endeavor and WWE did not immediately respond to requests for comment.

The deal could be announced as soon as Monday, according to CNBC. Endeavor shareholders will own 51 per cent of the combined company, while WWE shareholders would get 49 per cent, CNBC reported, citing sources.

Endeavor, which is the parent company of the popular UFC mixed martial arts organization, is led by Hollywood power broker Ari Emanuel, who earlier this month declined to answer questions about a possible deals.

WWE shares, which have risen more than 30 per cent this year, closed at $91.26 on Friday, giving the company a market capitalization of $6.8 billion. Endeavor has a market value of $11.3 billion.

In January, WWE said it would explore strategic options that could include a sale, shortly after Vince McMahon's return to the company. WWE hired the Raine Group and law firm Kirkland & Ellis as its advisers for the review.

McMahon had retired in July last year as the company's CEO and chairman, following an investigation into his alleged misconduct. He returned as the executive chairman of the media and entertainment company's board after co-chief executive officer and chairwoman Stephanie McMahon stepped down.

After his return, McMahon took control and launched the strategic review, after making some changes to the company's board.