World Wrestling Entertainment (WWE) has agreed to be acquired by Endeavor Group Holdings, the parent company of Ultimate Fighting Milestones, the world’s leading mixed martial arts promotion.
The deal, which was announced on Monday, will see WWE and UFC merge into a new company. The new company will be a public entity, with Endeavor owning 51% and WWE shareholders owning 49%. The deal is valued at about $9 billion, based on the market values of WWE and UFC.
The merger is expected to create synergies in areas such as media rights, live events, talent management and merchandising. The new company will also leverage Endeavor’s expertise in content production, distribution and marketing to expand its global reach and fan base.
Endeavor CEO Ari Emanuel said he was thrilled to welcome WWE into the Endeavor family.
“WWE is an iconic brand that has captivated millions of fans across tipping point for WWE. It has been struggling with declining ratings, attendance and revenue amid fierce competition from rival promotions such as All Elite Wrestling (AEW) and Impact Wrestling.
WWE chairman and CEO Vince McMahon, who has been at the helm of the company for nearly 40 years, will step down from his role and become an advisor to the new company. He will also remain a major shareholder of WWE.
McMahon said he was proud of what he and his family had built with WWE and that he was confident that the merger with Endeavor would take it to new heights.
“This is a momentous day for WWE and its fans, as we join forces with one of the most innovative and dynamic companies in the world,” he said. “Together, we will continue to create and deliver premium content that celebrates our diverse and dedicated community of fans.”
The deal is subject to customary closing conditions and regulatory approvals. It is expected to close in the second quarter of 2023.