A $21 billion entertainment behemoth with Endeavor Group Holdings and Ari Emanuel as CEO was formed on Monday as a result of a historic merger between Dana White’s Ultimate Fighting Championship and Vince McMahon’s World Wrestling Entertainment. Fans of the UFC and WWE are currently looking forward to seeing how their favorite company will profit from this ground-breaking collaborative effort.
Together, they will be a powerhouse with global reach, impressive scale and omnichannel distribution.https://t.co/lPrkBmKJXm pic.twitter.com/3ZzbFt5o0N
— Endeavor (@Endeavor) April 3, 2023
Why did World Wrestling Entertainment, Inc. choose to merge with the Ultimate Fighting Championship?
Since months, there have been discussions about selling the McMahon family business in order to save the company for greater good of the biggest wrestling promotion in the world. After his daughter quit as the company’s co-CEO and board chairperson in January, Vince McMahon once again took up the position of executive chairman of WWE but this with the sole purpose to sell the company.
Word that the Public Investment Fund of Saudi Arabia would be purchasing the company spread a week following McMahon’s return. PIF news drove the stock price of the company skyrocketing in both directions. However, the arrangement did not materialize, and WWE kept looking for new buyers.
WWE is in advanced talks to be sold to Ari Emanuel’s Endeavor Group, the parent of UFC.
The deal would combine UFC and WWE into one publicly traded company.
A deal could be announced as soon as Monday
Vince McMahon is expected to be executive chairman, while Endeavor President… pic.twitter.com/FmEAGglASr
— Wrestle Ops (@WrestleOps) April 2, 2023
In the end, WWE was able to finalize the agreement during the WrestleMania extravaganza with Endeavor, the parent company of the UFC. The newly formed along with two sporting giant of the world is only expected to grow bigger under the leadership of Endeavor Group Holdings.
How will the merger benefit the WWE and the UFC?
As both WWE and UFC are expected to continue their operations under the leadership of Endeavor Group Holdings, it can be anticipated that as a giant company there will be massive changes in the media rights. Not just WWE, world’s biggest and most popular mixed martial arts promotion will also get benefited from the groundbreaking deal.
Disney’s ESPN is anticipated to benefit Dana White’s business in terms of media and broadcast rights. Current CEO of WWE, Nick Khan has already expressed their expectations from the new deal which is continuing their partnership with NBC and Fox in the long run.
UFC president Dana White reacts to Endeavor’s purchase of WWE and the planned merger. 📈
Full story: https://t.co/3Q09VzCKPV pic.twitter.com/F2fcF8OgVS
— MMA Junkie (@MMAJunkie) April 3, 2023
Working with a newer and larger company involves dealing with stiff competition. If FOX and NBC wish to renew their contracts, they will have to work on it and will undoubtedly confront other highly competitive media platforms. FOX CEO Lachlan Murdoch has already expressed his desire to renew their contract with WWE in the future.
“We’re ready, we haven’t engaged with them on the rights yet. But ultimately, our appetite for renewal depends on what happens with the rest of our sports portfolio,” said Lachlan Murdoch.
UFC parent company Endeavor has purchased WWE, with plans to combine the promotions into one publicly traded company.
📰 https://t.co/hRohfJNBEE pic.twitter.com/2DiPERwtQo
— MMA Fighting (@MMAFighting) April 3, 2023
What are your opinions on WWE and UFC merging? What other ways do you believe the acquisition will help both companies? Share your thoughts with us in the comment section.
