WWE and UFC officially merge to form a 20 billion conglomerate

Endeavor and World Wrestling Entertainment, Inc. (WWE) have signed a definitive agreement to create a new publicly listed company made up of two iconic, complementary global sports and entertainment brands, UFC and WWE.

Endeavor will hold a 51% controlling interest in the new company, while existing WWE shareholders will hold 49%. The new company will have a collective fan base of over a billion people and is expected to deliver $50 million to $100 million in annualized run rate cost synergies. Endeavor CEO Ariel Emanuel will continue to hold his position as CEO of Endeavor, while Vince McMahon will be the Executive Chairman of WWE.

Combining the global reach and impressive scale of UFC and WWE, the new company will be a $21+ billion live sports and entertainment powerhouse with an exciting growth opportunity. On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and have enjoyed a 10% annual revenue growth rate since 2019.

With this rare opportunity, the new company is poised to maximize the value of its combined media rights, enhance sponsorship monetization, develop new forms of content, and pursue other strategic mergers and acquisitions to further bolster its strong stable of brands.

Endeavor’s success at UFC, including commercial opportunities that have driven more than 2x Adjusted EBITDA growth since its acquisition in late 2016, demonstrates the significant value creation opportunity and upside potential of having UFC and WWE under one roof.

The new company will be led by Emanuel as CEO, McMahon as Executive Chairman of the Board, and Mark Shapiro as President and COO of both Endeavor and the new company. Dana White will continue in his role as President of UFC, and Nick Khan will serve as President of WWE.

The real winner in this entire scenario is Vince McMahon. When he assumed his role, the WWE was valued at just $1 million.