Who’s in charge?
Ari Emanuel, the CEO of Endeavor, will remain the head of the newly formed company. Ultimately, Endeavor will retain a 51% controlling interest in the new company, and WWE will hold the remaining 49% share. Vince McMahon, the executive chairman of WWE, will continue in that role. The announcement comes a day after WrestleMania, the WWE’s biggest event of the year. The two-day event had more than 160,000 in attendance, the company announced and featured celebrities like rapper Snoop Dogg, NFL star George Kittle, and former UFC competitor and current WWE star Brock Lesnar.
The new company will appoint a new board of directors made up of six representatives from Endeavor and five from WWE. Dana White (president of the UFC) will retain that position in the new company. WWE and Endeavor-owned UFC created a combined $2.4 billion in revenue during the financial year of 2022 (a 10% growth since 2019)
Quotes from new bosses
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is heading,”
– Ari Emanuel.
“Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past 7 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 shareholders and other stakeholders”
– Vince McMahon.
Endeavors role
The deal will unite two of the most significant names in wrestling and entertainment, and caps a months-long sale process for WWE. It was overseen by its co-founder and executive chairman Vince McMahon, who returned to the company’s board in January. The newly created company will seek to capitalize on consumers’ desire to participate in live experiences – a trend that has resumed since the height of the pandemic – and on their appetite to bet on sports, said Endeavor President Mark Shapiro, who will serve in the same capacity in the new company.
Endeavor has transformed into a sports and entertainment powerhouse with over 20 acquisitions from its roots in representing film and television talent. It has hosted events, fashion shows, and the Miami Open and Madrid Open tennis competitions. Endeavor said it would run the same way it does with the UFC, the world’s largest MMA organization, improving efficiency, negotiating media deals and licensing deals. The UFC has seen its revenue grow by more than 1.5X since 2017, a year after Endeavor took a controlling interest in the company. Endeavor bought out the remaining shareholders in 2021.
The agreement values each share of WWE at $106, 16% to the company’s Friday closing, and gives WWE a value of $9.3 billion. The newly formed company will be publicly listed.
The new company could represent the dawn of a new era of the professional wrestling industry. Fans could see crossover events like never before, with superstars from WWE competing against UFC fighters. They could also be used to add legitimacy to wrestling with a more realistic portrayal of the sport.
What do you think to the merger? Will fighters have more opportunity to cross over and become bigger global superstars? Or will this blur the lines between what is real and what is not potentially causing negative affects?