Saturday, June 10, 2023
HomeMOVIES REVIEWWWE close to a merger deal with the father of UFC Endeavor ...

WWE close to a merger deal with the father of UFC Endeavor -Et

World Wrestling Entertainment Inc. Chairman Vince McMahon appears ringside during WWE Monday Night Raw at the Thomas & Mack Center on August 24, 2009 in Las Vegas, Nevada.

Ethan Miller | fake images

Vince McMahon’s World Wrestling Entertainment is in advanced talks to be sold to Ari Emanuel’s effort groupthe parent company of the UFC, according to people familiar with the matter.

A deal could be announced as soon as Monday. The UFC and WWE are expected to form a new publicly traded company as part of the deal, according to the people, who declined to be named due to the confidential nature of the discussions.

investment related news

CNBC Investment Club

Endeavor is slated to own 51% of the new combat sports and entertainment company, while WWE shareholders would get 49%, according to the people. Endeavor’s deal gives WWE an enterprise value of $9.3 billion, they said.

Emanuel is expected to serve as CEO of both Endeavor and the new company. In addition, McMahon is expected to serve as CEO, while Endeavor President Mark Shapiro will also serve in the same role at the new company. Dana White will remain as president of the UFC, while WWE CEO Nick Khan will serve as president of the wrestling business.

The development comes during the same weekend that WWE hosts its flagship live event, WrestleMania, in California. The company has spent the last few months searching for a buyer. McMahon returned to the company as president in January to oversee the process. WWE shares are up more than 33% year to date, giving it a market value of more than $6.79 billion.

The deal will effectively end WWE’s decades-old status as a family business. mc mahon’s father founded WWE in its original incarnation in the mid-20th century, and McMahon is the company’s majority shareholder. McMahon bought the company from his father in 1982. Since then, the company has become a global phenomenon, spawning stars like Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.

McMahon, 77, retired from the company in July following a series of revelations that he paid millions of dollars to various women over the years to keep them quiet about alleged affairs and misconduct. Her daughter, Stephanie McMahon, became co-CEO with Khan. Paul Levesque, who is the husband of Stephanie McMahon and the wrestler known as Triple H, has taken over creative duties from Vince McMahon.

When Vince McMahon returned in January, Stephanie McMahon stepped down and Khan fully took over as CEO. The elder McMahon recently signed a two-year employment contract, according to a presentation of values.

Khan in recent weeks has been making the rounds in the media to discuss the possible sale. He told CNBC’s Morgan Brennan on Thursday that it has been a strong sales process, attracting many interested buyers.

WWE CEO Nick Khan says he remains optimistic about plans to introduce gambling

WWE brings with it a strong live events and media business, along with its decades of intellectual property. The company generated $1.29 billion in revenue last year, mainly driven for its $1 billion media unit.

UFC has paid off for Endeavour. Last year, the MMA league helped Endeavor’s sports business generate $1.3 billion in revenue. Endeavour’s market capitalization stood at around $10.53 billion as of Friday’s close. The Endeavor-WWE deal values ​​the UFC at more than $12 billion.

WWE, at least at a glance, would also fit well with the Endeavor and UFC cultures. McMahon has a brash public persona, which apparently makes him a good match for Emanuel and White, who are also known for their outsized personalities.

White, like McMahon, is also no stranger to scandal. Earlier this year, video surfaced showing the UFC boss slapping his wife during a public argument at a New Year’s Eve party in Mexico. White apologized.

Disclosure: Peacock, the streaming service owned by CNBC parent NBCUniversal, airs WWE events like WrestleMania.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments