Endeavor Group Holdings, the parent company of the Ultimate Fighting Championship (UFC) MMA promotion, has entered into an agreement to purchase World Wrestling Entertainment (WWE).
The two entities will combine to form the world’s largest combat sports company, containing the top promotions for professional wrestling and mixed martial arts. The new valuation of the company is estimated to be $21.4 billion.
The merger announcement comes after months of the WWE trying to find a buyer. If completed as currently arranged, Endeavor would hold a 51% stake in the entire company, with current WWE investors possessing the remaining 49%.
A large majority of WWE’s stake is held by current Chief Executive Vince McMahon.
“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.”
Vince McMahon – Executive Chairman Of WWE
The move makes sense from a streaming perspective. Together, their vast library of content will be appetizing to streaming applications that are desperate for content.
The WWE Network launched in 2014 in the United States and offered its services via a $9.99 monthly subscription that allowed viewers access to archived events, programming, and pay-per-views.
In January of 2021, rights to the content of the WWE Network was acquired by Peacock (NBC) and added to their online library. WWE has similar agreements in foreign markets but still hosts its own services in some regions.
Unconfirmed reports have suggested that the WWE’s deal with NBC is set for five years. If true, their product will remain with Peacock until mid-2026.
The UFC certainly has a large backlog of content that could be made available on a streaming service. There has been no word as to whether they intend to forfeit their pay-per-view revenue in hopes that it will be made up with subscription dollars.
The deal makes sense. WWE currently employs Brock Lesnar and Rhonda Rousey, two former UFC Champions. CM Punk left the WWE in 2014 to pursue an MMA career in UFC, and is now under contract with rival promotion AEW.
The new company has yet to designate a name but will be traded as TKO. Ari Emanuel, the CEO of Endeavor, will lead the company hierarchy. Vince McMahon will retain his role with the WWE portion of the company, with Nick Khan staying on board as president.
Dana White will remain as president of the UFC.
This news comes on the heels of WrestleMania 39, a 2-night Premium Live Event that concluded last night in Los Angeles, California’s SoFi Stadium.
The deal will not finalize until the third or fourth quarter of 2023. While the merger has been approved by the boards of both the WWE and Endeavor, the union will not become official until approved by regulators.
Source – Barrons, Bleacher Report, AP News