UFC Parent Company Endeavor Purchases WWE for New Sports Entertainment Merger

Today, @Endeavor announced it has signed an agreement to form a $21+ billion global live sports and entertainment company made up of @UFC and @WWE. https://t.co/lPrkBmKJXm pic.twitter.com/ZBk95c5exU

— Endeavor (@Endeavor) April 3, 2023

The Ultimate Fighting Championship and World Wrestlling Entertainment are about to be under the same ownership umbrella.

Endeavor, the parent company of the UFC, has purchased WWE and will form a new publicly traded company with the two organizations. As a result of the agreement, Endeavor will own 51% of the new combat sports entertainment company, while WWE shareholders get a 49% stake. CNBC was first to report the sale.

Endeavor CEO Ari Emanuel will be the chief executive of the new company, while former WWE owner Vince McMahon will serve as executive chairman. Endeavor president Mark Shapiro takes over the same role at the new company; Dana White will remain UFC president and WWE CEO Nick Khan will oversee the wrestling organization.

“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” Emanuel said in a release. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

The merger will result in a combat sports entertainment organization valued at $21.4 billion in total, according to a release (The UFC has a value of $12.1 billion; while the WWE checks in at $9.3 billion). The UFC and WWE earned $2.4 billion combined at the end of 2022 and have achieved 10% annual revenue growth since 2019.

“Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past seven years – and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” McMahon said.

“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 continued. “The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands. I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level.”

With the merger, Endeavor is expecting “significant growth” in the following areas: domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality. The transaction is expected to officially close in the second half of 2023. The new entity will operate under the moniker “NewCo” until it is renamed at a later date, per a release.

White had a positive reaction to the merger in a statement released on Monday.

“This company has been on fire for the last seven years and now that we will be adding WWE to the portfolio, I am excited to take this to another level,” White said.

“Vince is a savage in the wrestling space. Ari is a beast at what he does and then add what we at UFC bring to the table and there is no limit to what this company can accomplish in the next few years.”