Over Wrestlemania weekend, it wasn’t just titles that changed hands. Reports have come out now that Ari Emanuel’s Endeavor, which owns UFC, is purchasing WWE and merging it with the mixed martial arts company. The deal, worth a reported $21 billion, will give the WWE alone a value of more than $9 billion.
A statement accompanying the announcement read, “Together, UFC and WWE will have global reach, impressive scale and omnichannel distribution…On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of $2.4 billion and a 10 percent annual revenue growth rate since 2019.”
This Endeavor, uh, endeavor, doesn’t just merge WWE with UFC, but sets up an entirely new company. However, Endeavor will own 51% of the company, while WWE shareholders would have the remaining 49%, thus possibly posing serious threats as to where the wrestling company goes from here. The biggest positive for many fans out of this deal is that WWE hasn’t been sold to a Saudi Arabian interest, which was long considered a frontrunner considering the WWE’s controversial relationship with the country. Now we just have to hope Endeavor doesn’t make Brawl for All a permanent pay-per-view fixture…
Endeavor’s meshing of WWE with UFC marks one of the biggest turning points in professional wrestling history, with World Wrestling Entertainment entering its first non-McMahon-run phase since the 1950s.
As for roles related to the WWE and UFC merger, CNBC reports that Emanuel will remain CEO of Endeavor and the new company, while Vince McMahon will serve as executive chairman and Endeavor president Mark Shapiro will take on the role at the yet-to-be-named new organization. Meanwhile, UFC president Dana White will keep his title and WWE CEO Nick Khan will serve as president on the wrestling side.
On the merger, Shapiro said, “The UFC and WWE both have valuable media rights through our world class IP. We have a track record of success in media rights opportunities and we have upcoming media rights renewals at both companies on the horizon.”
The sale of WWE has been imminent. Earlier this year, Vince McMahon said upon his return (following a pricey sexual assault investigation), “WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms…My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder.” This set the squared circle for rumors and speculation as to just what the future of WWE would hold.
Adding to this, McMahon just updated his WWE contract, with clauses that indicate “he will continue [to] serve a two-year term as Executive Chairman of the Board, retroactive to Jan. 9, 2023. For that, he’ll be paid a $1.2 million annual salary, with an opportunity to earn 175% in a target bonus, and an annual stock grant worth million.”
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