According to sources, there are advanced negotiations for Vince McMahon’s World Wrestling Entertainment (WWE) to be acquired by Ari Emanuel’s Endeavor Group, the parent company of UFC. If successful, this transaction would merge UFC and WWE to form a single publicly traded entity. WWE has been searching for a buyer for several months now.
Insiders familiar with the matter have reported that Vince McMahon’s World Wrestling Entertainment (WWE) is currently in advanced discussions to be sold to Ari Emanuel’s Endeavor Group, which is the parent company of UFC. The deal is expected to be announced as early as Monday.
Negotiations
As part of the agreement, it is anticipated that UFC and WWE will combine forces to create a new publicly traded company. The people who disclosed this information chose to remain anonymous to maintain the confidentiality of the negotiations.
Deal
Sources indicate that as part of the proposed deal, Endeavor would possess a 51% ownership stake in the new combat sports and entertainment company, with WWE shareholders holding 49%. The transaction would value WWE at an enterprise value of $9.3 billion.
Ari Emanuel is expected to serve as the CEO of both Endeavor and the new company, while Vince McMahon would become the executive chairman. Mark Shapiro, currently the president of Endeavor, would also hold the same position in the newly merged company. Meanwhile, Dana White will remain as president of UFC, while Nick Khan, the current CEO of WWE, will become the president of the wrestling division
This news comes as WWE is holding its major annual event, WrestleMania, in California this weekend. The company has been searching for a buyer for several months and McMahon returned to the company as chairman in January to oversee the process. The shares of WWE have risen over 33% this year, giving it a market value of over $6.79 billion.
Deal status
The deal, if successful, would bring an end to WWE’s long-standing status as a family-owned business. McMahon’s father founded WWE in its earlier form during the mid-20th century, and McMahon presently holds a controlling stake in the company. McMahon acquired the company from his father in 1982, and since then, WWE has grown into a global sensation, producing stars like Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista, and John Cena.
There appears to be an error in the previous statement. Vince McMahon, at the time of this writing, is still the chairman and CEO of WWE. He has not retired from the company in July due to the allegations mentioned.
Clarification
Stephanie McMahon is the Chief Brand Officer of WWE, not a co-CEO. Nick Khan is the current president and chief revenue officer of WWE. Paul Levesque, also known as Triple H, is the Executive Vice President of Global Talent Strategy and Development for WWE, and has creative control over the NXT brand.
Thank you for the clarification. It seems that there was some confusion regarding the previous statement.
To provide an accurate update, it should be noted that Vince McMahon did not retire in July, but he has since taken a less active role in the day-to-day operations of WWE. When he returned in January, Stephanie McMahon resigned from her position as Chief Brand Officer, and Nick Khan became the CEO. Vince McMahon recently signed a two-year employment contract, as reported in a securities filing.
Khan has been actively discussing the potential sale with various media outlets in recent weeks. During an interview with CNBC’s Morgan Brennan on Thursday, he confirmed that the sale process has attracted significant interest from multiple potential buyers.
The potential merger between WWE and UFC’s parent company Endeavor is noteworthy given WWE’s strong media and live events business, as well as its extensive intellectual property portfolio. In 2021, WWE generated $1.29 billion in revenue, with the media unit accounting for $1 billion of that total.
UFC has been a successful investment for Endeavor, helping the company’s sports business generate $1.3 billion in revenue last year. As of Friday’s close, Endeavor had a market cap of approximately $10.53 billion. The deal between Endeavor and WWE values UFC at more than $12 billion.
From a cultural standpoint, WWE’s public image and Vince McMahon’s bold personality may align well with the ethos of Endeavor and UFC. All three entities are known for their larger-than-life personalities, making for a potentially good fit.
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