WWE, Endeavor-owned UFC to merge into $21bn entertainment giant

World Wrestling Entertainment Inc. will combine with Endeavor Group-owned mixed martial arts franchise UFC to form a new, publicly listed entertainment giant valued at about $21 billion, the companies said on Monday.

The deal unites two of the biggest names in wrestling and entertainment and caps a months-long sale process for WWE, overseen by its co-founder and executive chairman Vince McMahon who returned to the company’s board in January. “This is a once-in-a-lifetime opportunity to bring together two leading pure-play sports and entertainment companies,” Endeavor CEO Ari Emanuel said in an investor presentation, describing the deal as a “transformational step” for Endeavor.

Emanuel said he would capitalize on Endeavor’s expertise in securing media deals, sponsorships and new forms of distribution to fuel growth at the new company, which he will lead as chief executive officer while continuing in his role at Endeavor. McMahon will retain his role in the new company, which will be majority owned by Endeavor with a 51 percent stake, while WWE investors will own the rest.

Hollywood power broker Emanuel has transformed Endeavor, which has its roots in representing film and television talent, into a sports and entertainment powerhouse with more than 20 acquisitions. He has invested in bull riding events, fashion shows and the Miami Open and Madrid Open tennis competitions.

Endeavor said it would run the same playbook it employed with the UFC, the world’s largest martial-arts organization, improving operating efficiency, negotiating lucrative media deals and striking licensing deals. The UFC has seen its revenue grow by more than one and a half times and its adjusted EBTIDA double since 2017, a year after Endeavor took a