STAMFORD, Connecticut — In a major announcement, Endeavor Group Holdings, Inc. and World Wrestling Entertainment, Inc. have revealed plans to form a new publicly listed company consisting of two globally renowned sports and entertainment brands: UFC and WWE. The announcement comes on the heels of Wrestlemania and signals a new chapter for both brands. Upon closing, Endeavor will hold a controlling 51% interest in the new company, while existing WWE shareholders will hold a 49% interest. Together, UFC and WWE achieved revenue of $2.4 billion in 2022, with a 10% annual growth rate since 2019.
“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.”
Vincent K. McMahon, Executive Chairman of WWE, said the move was the best outcome for shareholders and stakeholders, creating a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people. The new company will be well positioned to maximize the value of their combined media rights, enhance sponsorship monetization, develop new forms of content and pursue strategic mergers and acquisitions to further bolster their strong stable of brands.
The new company will be led by Emanuel (CEO), McMahon (Executive Chairman of the Board), and Mark Shapiro (President and COO of both Endeavor and the new company). Dana White will continue in his role as President of UFC, while Nick Khan will serve as President of WWE. The board of directors will consist of 11 members appointed later, six by Endeavor and five by WWE.
The transaction values UFC at an enterprise value of $12.1 billion and WWE at an enterprise value of $9.3 billion. The transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close in the second half of 2023.
