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Owner of UFC buys WWE to create sports entertainment giant
8 hours ago8 hours ago
UFC and WWE are joining together to form a mega sports entertainment brand worth over $21 billion. Endeavour, the owner of the UFC brand, will hold a controlling share.
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Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) are set to become one joint company, according to a deal announced by UFC-owner Endeavour Group Holdings Inc on Monday.
The new publicly traded company will combine the two popular fighting entertainment brands with a combined worth of over $21 billion (€19.3 billion). WWE alone is valued at $9.3 billion.
Endeavour will hold a 51% controlling stake in the new company with WWE’s shareholders taking the remaining 49%.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” said Ariel Emanuel, CEO of Endeavor, in a company statement.
More value for the shareholders
Vince McMahon, the founder of WWE, will keep his job as executive chairman. He only returned to the company in January, saying that it was up for sale.
There had already been rumors of such a move being planned, with Endeavour, Disney, Fox, Comcast, Amazon and Saudi Arabia’s Public Investment Fund seen as the most likely buyers.
While both UFC and WWE brands broadcast fights for entertainment, the former focuses on mixed martial arts whereas the latter is well known as a performance of fighting along with soap opera-like storylines — although still with a high risk of injury for the performers.
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“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,” Emanuel said.
WWE — an attractive acquisition
WWE is considered a fruitful investment due to its broad range of appeal and large loyal fanbase, especially regarding social media interactions.
The wrestling company pulled in a revenue of $1.3 billion last year. It hosted its annual flagship event Wrestlemania over the weekend.
The company is a giant on social media with almost 94 million YouTube subscribers and over 20 million followers on TikTok.
Its performers also have their own media pull, especially the women wrestlers who make up five out of the top 15 most followed female athletes across various social media platforms including Facebook, Instagram and Twitter.
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ab/dj (AP, dpa)
