UFC, WWE combine to form $21.4B US sports entertainment company

WWE and the company that runs Ultimate Fighting Championship will combine to create a $21.4 US billion sports entertainment company.

A new publicly traded company will be formed that houses the UFC and WWE brands, with Endeavor Group Holdings Inc. taking a 51 per cent controlling interest in the new company. Existing WWE shareholders will hold a 49 per cent stake.

The companies put the enterprise value of UFC at $12.1 billion and WWE's value at $9.3 billion.

The new business, which does not yet have a name, will be led by Endeavor CEO Ari Emanuel. Vince McMahon, executive chairman at WWE, will serve in the same role at the new company. Dana White will continue as president of UFC and Nick Khan will be president at WWE.

"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," McMahon said in a prepared statement Monday.

He also provided some idea of where the focus of the new company will be, saying that it will look to maximize the value of combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster their brands.

The announcement arrives after McMahon, the founder and majority shareholder of WWE, returned to the company in January and said that it could be up for sale.

Rumors swirled about who would possibly be interested in buying WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia's Public Investment Fund all in the mix.

Media industry analysts viewed WWE as an attractive acquisition target given its global reach and loyal fanbase, which includes everyone from minors to seniors and a wide range of