UFC parent company Endeavor is reportedly close to buying the WWE. This is as per CNBC.
According to those familiar with the situation, Vince McMahon's World Wrestling Entertainment is in advanced talks to be sold to Ari Emanuel's Endeavor Group, the parent company of UFC.
A contract might be announced as early as Monday. According to the persons who declined to be identified owing to the private nature of the conversations, the UFC and WWE are set to launch a new publicly traded business as part of the arrangement.
According to the people, Endeavor will own 51% of the new combat sports and entertainment company, while WWE shareholders will own 49%. According to them, the Endeavor acquisition gives WWE an enterprise value of $9.3 billion.
Emanuel is likely to serve as CEO of both Endeavor and the new entity. McMahon is likely to serve as executive chairman, while Endeavor CEO Mark Shapiro will also serve in the same capacity at the new business. Dana White will continue to lead the UFC, while WWE CEO Nick Khan will lead the wrestling company.
WWE delivers a thriving media and live events industry, as well as decades of intellectual property. Last year, the company earned $1.29 billion in revenue, primarily from its $1 billion media division.
Endeavor's investment in the UFC has paid off. Last year, the MMA league contributed $1.3 billion in income to Endeavor's sports company. Endeavor's market capitalization was approximately $10.53 billion as of Friday's close. The merger between Endeavor and WWE values UFC at more than $12 billion.
The agreement basically puts an end to WWE's decades-long status as a family-run enterprise. McMahon's father started WWE in its original form in the mid-twentieth century, and McMahon is the company's main stakeholder. In 1982, McMahon purchased the company from his father. Since then, the company has become a global phenomenon, producing superstars such as Hulk Hogan, Dwayne "The Rock" Johnson, Dave Bautista, and John Cena.