WWE and the corporate that runs Ultimate Fighting Championship will mix to create a $21.4 billion sports activities leisure firm, the 2 corporations introduced Monday.

A brand new publicly traded firm will likely be shaped that homes the UFC and WWE manufacturers. Endeavor Group Holdings will maintain a 51% controlling curiosity within the new firm as soon as the deal is full. Existing WWE shareholders will maintain a 49% stake within the new firm.

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 likely be lead by Endeavor CEO Ari Emanuel. Vince McMahon, govt 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 likely 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 likely 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.

A synergy already exists expertise smart between WWE and UFC, with stars akin to Brock Lesnar and Ronda Rousey crossing over between the 2 companies.

The deal between Endeavor and WWE catapults WWE into a brand new period, after functioning as a family-run enterprise for many years. McMahon bought Capitol Wrestling from his father in 1982, and took the regional wrestling enterprise to a nationwide viewers with the likes of wrestling stars akin to Andre the Giant, Hulk Hogan and Dwayne “The Rock” Johnson. The firm, which modified its identify to World Wrestling Federation and later World Wrestling Entertainment, hosted its first WrestleMania in 1985.

MacMahon’s return as CEO

The announcement comes after McMahon, the founder and majority shareholder of WWE, returned to the company in January and stated it may very well be up on the market.

McMahon, who turned WWE from a small firm right into a worldwide leisure enterprise, stepped back temporarily as CEO and chairman in mid-June after which retired a month later. He was dealing with an investigation into alleged misconduct on the time of his short-lived retirement. 

The Wall Street Journal reported in July McMahon agreed to pay greater than $12 million in hush cash to 4 ladies over the previous 16 years to suppress allegations of sexual misconduct and infidelity.

Rumors swirled about who is perhaps desirous about shopping for WWE, with chatter specializing in corporations akin to Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund.

Industry consultants had considered WWE as a beautiful acquisition goal given its international attain and constant fanbase, which incorporates everybody from minors to seniors and folks with a variety of incomes.

Social media powerhouse

The firm can be a social media powerhouse. It surpassed 16 billion social video views within the last quarter of final 12 months. It has practically 94 million YouTube subscribers and greater than 20 million followers on TikTok. Its feminine wrestlers comprise 5 out of the highest 15 most adopted feminine athletes on the earth, 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.

Shares of World Wrestling Entertainment Inc., primarily based in Stamford, Connecticut, have been down 3.9% Monday morning. Shares of Endeavor, primarily based in Beverly Hills, California, have been down half a %.