In a surprising turn of events, World Wrestling Entertainment (WWE) is set to merge with the Ultimate Fighting Championship (UFC). Following the conclusion of Wrestlemania 39, the companies announced the formation of a new company, controlled by the Endeavor Group.
As per the merger, Endeavor shareholders will own a 51% stake in the new company, whilst the WWE shareholders will own the remaining 49%. Thus, the board of this company will consist of 11 people, six appointed by Endeavor and five by the WWE. Moreover, the merged company’s name is set to be announced at a later date.
Notably, Ari Emanuel will be the chief executive of both Endeavor and the new company. Similarly, Vince McMahon will be the executive chairman, whilst Endeavor President and COO Mark Shapiro will assume the same role at the new company. Moreover, UFC President Dana White will continue in his role as will WWE CEO Nick Khan.
Additionally, the deal, worth $21 billion, is set to be completed in the second half of 2023, and values WWE at $9.3 billion and the UFC, owned by Endeavor, at $12.1 billion.“It’s a great day,” said McMahon. “Things have to evolve. Family businesses have to evolve for all the right reasons.” Ari Emanuel also added on in a press release, “This is going to be UFC 2.0.”
What happens to the WWE after the UFC merger?
Although the merger seems like a step in the right direction, many are still in doubt as to what it entails. Long story short, the agreement brings together two of the biggest sports entertainment brands in the world. Not only that, but the two organizations also have a history together, with superstars moving from the WWE to the UFC and vice versa.
Whilst the WWE is all about scripted matches and dramatic, elaborate storylines, the UFC is renowned globally for its authentic, hard-hitting mixed martial arts fighting. Thus, the organizations are similar in the kind of content they bring out and their culture. Moreover, several big-name UFC fighters, like Ronda Rousey and Brock Lesnar, have become megastars in the WWE. Although some WWE fighters (like CM Punk) have made their way to the UFC, it has hardly ever resulted in any success.
For the most part, news of the merger has received overwhelmingly positive reviews. As such, former UFC champion and superstar Conor McGregor has also shared his thoughts about it online.“Incredible. What a powerhouse!” he wrote on Twitter. More importantly, Endeavor owns the WME talent agency, using its expertise to grow the UFC’s revenue to $1.3 billion last year. As such, the company will look to replicate similar success with the WWE.
On the hand, the WWE offers Endeavor’s shareholders a sizeable media and live events business. Along with that, the WWE has also been a household name over the past two decades. Notably, the company was able to generate $1.29 billion last year and will look to top that in the coming years. What did you make of the WWE-UFC merger? Feel free to leave your thoughts in the comments below.