UFC, WWE will merge, form a giant company worth US$21.4 billion
TWO world-renowned sports entertainment brands, UFC and WWE, will merge to form a US$21.4 billion (RM92.8 billion) publicly traded company housing both entities, reports Yahoo! News on Monday.
Through the merger, Endeavor Group Holdings Inc, which operates the Ultimate Fighting Championship (UFC), will hold a 51% stake in the new company, while World Wrestling Entertainment (WWE) shareholders will acquire the remaining 49% stake.
“Together, we will be a US$21.4 billion live sports and entertainment powerhouse with over one billion fans and exciting growth opportunities.
“The new company will be well-positioned to maximize the value of our combined media rights, increase sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further strengthen our already strong brand,” said WWE Executive Chairman Vince McMahon.
UFC, the world’s largest mixed martial arts (MMA) organization, is reported to be worth US$12.1 billion (RM53.5 billion), while WWE, the famous professional wrestling organization, is reportedly worth US$9.3 billion (RM41.1 billion).
“This is a rare opportunity to create a global live sports and entertainment game built for industry purposes.
“For decades, Vince and his team have demonstrated a track record of innovation and incredible shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing the UFC and WWE together,” said the CEO, Endeavour, Ariel Emanuel.
It is understood that McMahon and Emanuel will each remain in their positions in the new company.
McMahon, 77, in July last year announced his retirement as Chairman and Chief Executive Officer (CEO) of WWE after 40 years at the helm of the organization.
According to media reports, it is a follow-up to the investigation of allegations of sexual misconduct against him.
However, McMahon returned to WWE in January last year, after repaying the company US$17.4 million (RM76.9 million) to cover the cost of the investigation, according to an SEC filing.
