World Wrestling Entertainment Inc. about to reach an agreement to sell to
EDR 3.37%
Holdings Inc., which owns the Ultimate Fighting Championship, according to people familiar with the matter.
As part of the agreement, Endeavor’s UFC business and
WWE 0.73%
It is reported that a separate publicly traded entity will be established, in which Endeavor shareholders will hold 51% and WWE shareholders will retain 49%.
The deal, which CNBC previously reported, is expected to be announced on Monday, these people added.
Vince McMahon, majority owner and former WWE executive, who retired last year in the midst of a misconduct investigation, back to the company in January to pursue the sale, The Wall Street Journal previously reported.
In a series of articles last year, the Journal revealed that Mr McMahon had paid for decades to stamp out allegations of sexual misconduct. The revelations and findings of the WWE board’s investigation led to his short retirement after 40 years.
The magazine reported that Mr. McMahon was involved in secret deals with women totaling more than $12 million between 2005 and 2022. The magazine reported in January that he was also involved in it. a deal. settlement of millions of dollars with a former wrestling referee who accused him of rape.
Mr McMahon denied the rape allegation. He and WWE have declined to discuss other settlements. They said they cooperated with the board’s investigation. The settlements helped perpetuate the culture of secrecy in the professional wrestling community that Mr McMahon exercised through his influence to make or break a wrestling career.
Mr. McMahon reimbursed WWE $17.4 million to cover costs related to a sexual misconduct investigation, the company disclosed in a securities filing last month.
The Journal’s revelations have triggered pending criminal and civil investigations into Mr McMahon’s activities.
WWE President Vince McMahon will be the executive chairman of the new company.
Photo:
Ethan Miller / Getty Images
A few days after Mr. McMahon returned to WWE this year, the company’s board of directors unanimously voted Mr. McMahon as executive chairman. His daughter, Stephanie McMahon, also stepped down as chairman and co-CEO, leaving Nick Khan, who had been the other co-CEO, as sole chief executive officer.
The Endeavor deal gives WWE an enterprise value of $9.3 billion, and the UFC has an enterprise value of $12.1 billion, these people said.
Ari Emanuel, the chief executive of Endeavor, will serve as chief executive officer of the new public company in addition to his current role, the source said. Mr. McMahon will be the new company’s executive chairman, they said.
WWE generate most of the revenue from the sale of content rights, its first year posting revenue over 1 billion USD in 2021. Its shares are up about 33% year-to-date, bringing its market capitalization to $6.8 billion on Friday. Shares of Endeavor are up about 6% year-over-year, bringing its market value to $10.5 billion.
WWE content plays an important role for
fox Group
NBCUniversal’s Fox Broadcasting and cable channel USA Network and its Peacock streaming service. In 2021, Peacock succeeded 5 year contract worth 1 billion USD with WWE become its streaming home.
WWE’s agreements with Fox and USA are Expires next year.
Walt Disney copper
‘S ESPN Brings UFC Content Under 5-Year Contract which the Journal previously reported is valued at $1.5 billion. ESPN also offers UFC events through pay-per-view.
Write to Lauren Thomas at [email protected] and Joe Flint at [email protected]
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Appears in print issue April 3, 2023 as ‘WWE Nears Sale To UFC’s Endeavor.’
