UFC Owner Endeavor to Merge With WWE

Facts

• Endeavor Group, owner of the Ultimate Fighting Championship (UFC), announced Monday it will merge with World Wrestling Entertainment Inc. (WWE), ending a months-long process headed by WWE co-founder and executive chairman Vince McMahon.¹
• McMahon will remain executive chairman of the new company, but Endeavor will own 51% of the business, meaning for the first time since the organization’s founding in 1953, the McMahon family will not control WWE.²
• The deal, expected to close in the second half of 2023, values WWE at $9.3B and UFC at $12.1B, with shares of both companies falling Monday morning.³
• In an interview, McMahon said, 'It's the right time to do the right thing.” He called the decision the 'next evolution of WWE.” It’s estimated there are more than 700M UFC fans and 1.2B WWE fans worldwide.⁴
• Mark Shapiro — current president and CEO of Endeavor — will take on the same position at the new sports company, and Dana White will remain president of the UFC. Meanwhile, WWE CEO Nick Khan will hold an identical position to White in the wrestling branch.⁵
• McMahon, previously the majority shareholder in WWE, announced his intention to sell the company in January when he returned from a five-month leave of absence following a $17M investigation into alleged sexual misconduct.⁶

Sources: ¹Reuters, ²The athletic, ³CNBC, ⁴Associated Press, ⁵The hollywood reporter and ⁶Style.

Narratives

• Narrative A, as provided by Bloody elbow. This deal is a win-win and marks a triumphant return by McMahon, who rescued WWE from slightly rocky ground and made it part of the most significant sports-entertainment organization in the world. There’s no telling how far the WWE-Endeavor partnership may go.
• Narrative B, as provided by Nodq.com. While the outcome of this merger remains to be seen, it's likely a poor decision: It opens the door to WWE changing drastically from its origins, offering fans a watered-down version of its product that reflects the new company behind it, rather than its authentic purpose. To its fanbase, this simply won't feel right.