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In a move that will create a sports entertainment juggernaut UFC (Ultimate Fighting Championship) has announced a US$9.3 billion ($13.5 billion) takeover of wrestling brand WWE.

WWE will now be part of a massive combat-sports entity with the UFC and its parent company Endeavor forming a new publicly listed company consisting of the two brands Championship brands.

As part of the deal, Endeavor will hold a 51% controlling interest in the new company, while existing WWE shareholders will hold a 49% interest. Endeavor owns UFC and the deal with WWE significantly bolsters its presence in the combat sports sector.

As reported by CNBC, Endeavour Chief Executive Ariel Emmanuel is expected to be the head of the new company, while WWE’s Vince McMahon will remain on as Executive Chairman.

UFC President Dana White and WWE Chief Executive Nick Khan will stay on leading the respective sides of the business.

Mark Shapiro will be President and Chief Operating Officer of both Endeavor and the new company.

Commenting on the deal, Emmanuel stated “this is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed.

“For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

McMahon added “given the incredible work that Ari and Endeavor have done to grow the UFC brand - nearly doubling its revenue over the past seven years - and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders.

“Together, we will be a (US)$21 billion-plus live sports and entertainment powerhouse with a collective fan base of more than a billion people and an exciting growth opportunity. The new company will be well positioned to maximise the value of our combined media rights, enhance sponsorship monetisation, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands.”

UFC and WWE, which have achieved revenue of US$2.4 billion and a 10% annual revenue growth since 2019, expect to deliver an estimated US$50 to US$100 million in annualised run rate cost synergies by leveraging Endeavor’s back office and infrastructure.

Endeavor also expects significant growth across revenue areas including domestic and international rights, ticket sales and yield optimisation, event operations, sponsorship, licensing and premium hospitality.

WWE’s television rights deals with Fox and NBC Universal are both set to expire in 2024.

The 77-year-old McMahon retired from WWE in July amid a sexual harassment and hush-money scandal but returned in January by using his status as the majority voting stockholder to push his way back on the board of directors as Executive Chairman in order to oversee a potential sale of the company.

Selling WWE ends the McMahon family’s hold of the company since McMahon’s father, Vince Senior, launched the company.

Vince McMahon bought it from his dad in 1982 for US$1 million on his way to turning the brand into the multi-billion wrestling juggernaut.

Image: WWE Monday Night Raw at London's 02 Arena in 2019. Credit: Shutterstock.

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