WWE and the corporate that runs Ultimate Fighting Championship will mix to create a $21.4 billion sports activities leisure firm.
A brand new publicly traded firm will probably be fashioned that homes the UFC and WWE manufacturers, with Endeavor Group Holdings Inc. taking a 51% controlling curiosity within the new firm. Existing WWE shareholders will maintain a 49% stake.
The corporations put the enterprise worth of UFC at $12.1 billion and WWE’s worth at $9.3 billion.
The new enterprise, which doesn’t but have a reputation, will probably be lead by Endeavor CEO Ari Emanuel. Vince McMahon, government chairman at WWE, will serve in the identical position on the new firm.
Dana White will proceed as president of UFC and Nick Khan will probably 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 stated in a ready assertion Monday.
He additionally offered some concept of the place the main target of the brand new firm will probably be, saying that it’s going to look to maximise the worth of mixed media rights, improve sponsorship monetization, develop new types of content material and pursue different strategic mergers and acquisitions to additional bolster their manufacturers.
The announcement arrives after McMahon, the founder and majority shareholder of WWE, returned to the corporate in January and stated that it may very well be up on the market.
Rumors swirled about who may be curious about shopping for WWE, with Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund all within the combine.
Media business analysts considered WWE as a horny acquisition goal given its international attain and dependable fanbase, which incorporates everybody from minors to seniors and a variety of incomes.
The firm held its marquee occasion, WrestleMania, over the weekend. Last 12 months, WWE booked income of $1.3 billion.
The firm can also be a social media powerhouse. It surpassed 16 billion social video views within the remaining quarter of final 12 months. It has almost 94 million YouTube subscribers and has greater than 20 million followers on TikTok. Its feminine wrestlers comprise 5 out of the highest 15 most adopted feminine athletes on this planet, throughout Facebook, Twitter & Instagram, led by Ronda Rousey with 36.1 million followers.
WWE had greater than 7.5 billion digital and social media views in January and February of this 12 months, up 15% from the identical time-frame a 12 months in the past.
The new firm plans to commerce on the New York Stock Exchange below the “TKO” ticker image. Its board can have 11 members, with six being appointed by Endeavor and 5 being appointed by WWE.
“We like the assets of UFC and also WWE in a world where linear TV is losing market share to streaming, thus live sport content is in high demand,” wrote Jeffries analyst Randal Konik stated in a observe to shoppers.
The transaction, which was permitted by the boards of Endeavor and WWE, is focused to shut within the second half of the 12 months. It nonetheless wants regulatory approval.
Shares of World Wrestling Entertainment Inc., primarily based in Stamford, Connecticut, fell greater than 8% earlier than the opening bell. Shares of Endeavor, primarily based in Beverly Hills, California, rose almost 3%.
Source: www.bostonherald.com”