WWE, UFC to merge into $21bn entertainment company

World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) have announced they will merge to create a $21.4bn sports entertainment giant.

A new publicly traded company will house UFC and WWE brands, with Endeavor Group Holdings Inc (UFC’s owners) taking a 51 percent controlling interest in the new company.

Existing WWE shareholders will get a 49 percent stake.

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.

McMahon will retain his role in the new company, which does not yet have a name.

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

“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 will lead as chief executive officer while continuing in his role at Endeavor.

Today, @Endeavor announced it has signed an agreement to form a $21+ billion global live sports and entertainment company made up of @UFC and @WWE. https://t.co/lPrkBmKJXm pic.twitter.com/ZBk95c5exU

— Endeavor (@Endeavor) April 3, 2023

Shares of WWE fell 4.5 percent in trading before the bell, while Endeavor was up four percent.

The new company will be listed under ticker symbol “TKO” on the New York Stock Exchange, the companies said.

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