The Endeavor business group, owner of the mixed martial arts promoter UFC, announced Monday that they have acquired the wrestling promoter WWE and the two will come together to create a sports emporium that will have a total value of $21 billion dollars.
Through a statement exposed by Endeavor, it is explained that Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) will join a single company from mid-2023 and that it will tentatively have the name of TKO.
According to the details disclosed, the resulting company will be controlled by Endeavor (51%) while the remaining 49% will be managed by WWE.
WWE had been looking for a buyer for months and, after a weekend of speculation, the two companies have agreed to “maximize” the value of their “media rights, enhance the monetization of sponsorships, develop new forms of content and seek other strategic purchases and mergers. ”, says the note.
Together, in fiscal 2022, the UFC and WWE had revenues of $2.4 billion and have experienced annual revenue growth of 10% per year since 2019.
Through the deal, both brands will contribute cash to the resulting company to bring it “about $150 million,” and expect their synergies to deliver cost savings of between $50 million and $100 million annually.
As for the managerial positions Dana White, president of the UFC, will continue in his position as president of the UFC while Nick Khan will be in charge of WWE, all under the direction of Ari Emanuel (CEO of Endeavor) who will manage TKO as one .