World Wrestling Entertainment (WWE) has agreed to merge with the Ultimate Fighting Championship (UFC) to form a new publicly traded company.
The name of the new company has not been announced, but it will be controlled by Endeavor Group (EDR), which owns UFC.
Going forward, Endeavor will own a 51% stake in the new combat sports and entertainment company, while WWE shareholders will own the remaining 49%, according to the agreement that’s been reached.
The deal values WWE at $9.3 billion U.S. and UFC at $12.1 billion U.S.
The WWE’s Vince McMahon will serve as executive chairman of the new company while Dana White will remain as president of UFC, the companies said in a joint news release.
The board of directors will consist of 11 people, six appointed by Endeavor and five appointed by WWE.
The agreement brings together two of the biggest sports entertainment brands in the world.
Analysts said the organizations appear to be a good fit in terms of content and culture. Several UFC fighters, including Ronda Rousey and Brock Lesnar, have also wrestled for WWE.
The merger ends WWE’s run as a family business. Vince McMahon’s father founded the company in 1953. McMahon bought WWE from his father in 1982 and turned it into a global brand, spawning stars suck as Hulk Hogan and Dwayne “The Rock” Johnson.
WWE generated $1.29 billion in revenue last year, driven mainly by live broadcasts. UFC earned $1.3 billion in revenue in 2022.
WWE’ stock has gained 45% in the last 12 months to trade at $91.26 U.S. per share. Endeavor Group’s stock has declined 19% over the past year to trade at $23.93 U.S. a share.
