Endeavor Group Holdings, Inc. (EDR) and World Wrestling Entertainment, Inc. (WWE) have reached a lucrative agreement to establish a new publicly traded company.
The new entity will consist of two famous and complementary global sports and entertainment brands – UFC and WWE.
Under the agreement, Endeavor will possess a controlling stake of 51% in the new company, while existing WWE shareholders will hold a 49% interest.
Upon the merger, UFC and WWE will have an extensive global presence and widespread omnichannel distribution, as mentioned in the official statement.
The combined revenue of both enterprises for the fiscal year-end of 2022 amounted to $2.4 billion, with an impressive annual growth rate of 10% since 2019.
Ariel Emanuel, CEO of Endeavor, has refused to hide his enthusiasm for striking such a colossal partnership with one of the world’s largest sports organizations.
“This is a rare opportunity to create global live sports and entertainment pureplay built for where the industry is headed,” Emanuel said.
“For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation.
“We are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”
Nothing less impressed with this massive deal, Vincent K. McMahon, Executive Chairman of WWE, has returned the kindness.
“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,” he said.
“I believe that this is without a doubt the best outcome for our shareholders and other stakeholders.”
Together, UFC and WWE anticipate generating annualised cost synergies ranging from $50 million to $100m by making use of Endeavor’s proficient infrastructure and administrative services, among other resources.
Emanuel will take charge of the new entity as Chief Executive Officer while continuing to handle his role as Chief Executive Officer of Endeavor.
But he won’t be the only prominent member of the new board.
Mark Shapiro, CEO of the Major League Baseball franchise Toronto Blue Jays, will act as President and Chief Operating Officer of both Endeavor and the new company.
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