Endeavor Group, a global leader in entertainment, sports and fashion, is in talks to acquire World Wrestling Entertainment, Inc, (WWE). According to a Bloomberg report, the deal could be announced next week.
The deal will see Endeavor, the parent company of UFC, merging UFC and WWE to form a new publicly traded company as part of the agreement.
Endeavor will now own 51% of the new combat sports and entertainment company, while WWE shareholders would get 49%. The deal gives WWE an enterprise value of $9.3 billion, so says people familiar with the deal.
CNBC reports that Ariel Zev Emanuel, current CEO of Endeavor, will act as the chief executive of both Endeavor and the new company. Vince McMahon is expected to be executive chairman, while Endeavor President Mark Shapiro will also work in the same role at the new company. Dana White will remain as president of UFC, while WWE CEO Nick Khan will serve as president of the wrestling business.
If this deal pulls through, it will effectively end WWE’s decades-old status as a family-run business. WWE was originally founded during the mid-20th century by Vince McMahon’s father, with McMahon currently holding the majority stake in the company as its controlling shareholder. McMahon took over the company from his father in 1982, and under his leadership, WWE has flourished into a worldwide sensation, producing renowned personalities like Andre the Giant, Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista, and John Cena.
Following a series of allegations of misconduct and extramarital affairs, 77 year-old Vince McMahon retired from the company in July 2022. In his absence, his daughter – Stephanie McMahon and Khan took over as co-CEOs, while creative responsibilities were handed over to Stephanie’s husband – Paul Levesque, also known as Triple H.
However, when McMahon returned in January 2023, Stephanie stepped down, allowing Khan to take on the role of CEO entirely. McMahon has since signed a two-year employment contract, as per a securities filing. Meanwhile, Khan has been actively discussing the possibility of selling the company in recent weeks through various media outlets.
WWE has a robust media and live events business, along with its decades worth of intellectual property. It generated $1.29 billion in revenue last year, driven mainly by its $1 billion media unit. It is currently histing its flagship live event, WrestleMania, in California this weekend.
In 2021, Endeavor Group Holdings acquired complete ownership of the UFC by committing to raise a minimum of $1.75 billion, subsequent to their partnership with investors in 2016 to purchase a controlling interest for $4 billion.
