WWE is collaborating with UFC’s parent competitor Endeavor Group, aiming to establish a new publicly traded company.
The deal’s value is reported to be around $21 billion. Endeavor shareholders will own 51% of the new company and 49% will go for WWE shareholders.
WWE shares fell 10% in early trading and Endeavor slumped around 2%. The companies are aiming to save $50 million to $100 million in costs after finalizing the deal.
Vince McMahon will remain the executive chairman in the new company. He mentioned that the company will be well positioned to increase value of their combined media rights.
The new company will have 11 members in the board of directors. Six of them have been chosen by Endeavor and the rest by WWE.
Endeavor CEO Ariel Emanuel issued a statement, saying that this is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed.
The new deal has also marked the end of WWE as a family-owned business. McMahon purchased the company from his father in the 80s, changing it to an entertainment empire.
McMahon retired as the company’s CEO in 2022 and following that, WWE disclosed expenses that he never reported, summing up to $19.6 million.