Endeavor’s UFC Merging with WWE

Endeavor Group Holdings and World Wrestling Entertainment have signed a definitive agreement to form a new, publicly listed company consisting of UFC and WWE, resulting in a “$21 billion-plus live sports and entertainment powerhouse.”

Upon close, Endeavor will hold a 51 percent controlling interest in the new company, and existing WWE shareholders will hold a 49 percent interest in the new company.

“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Ariel Emanuel, CEO of Endeavor. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

“Given the incredible work that Ari and Endeavor have done to grow the UFC brand—nearly doubling its revenue over the past seven years—and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” said Vincent K. McMahon, executive chairman of WWE.

McMahon continued, “Together, we will be a $21 billion-plus live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. The new company will be well-positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands. I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level.”

On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and a 10 percent annual revenue growth rate since 2019. Together, UFC and WWE expect to deliver an estimated $50 million to $100 million in annualized run rate cost synergies by leveraging, among other things, Endeavor’s back office and robust infrastructure.

The new company will be led by Emanuel (CEO), who will also continue in his role as CEO of Endeavor, McMahon (executive chairman of the board) and Mark Shapiro, who will be president and COO of both Endeavor and the new company. Dana White will continue as president of UFC, and Nick Khan will serve as president of WWE.