WWE nears merger deal with UFC parent company Endeavor

by Vince McMahon World wrestling entertainment in advanced negotiations to be sold to Ari Emanuel’s effort groupparent company of the UFC, according to people familiar with the matter.

A deal could be announced as soon as Monday. The UFC and WWE are expected to form a new publicly traded company as part of the deal, according to people who declined to be named due to the confidential nature of the discussions.

Endeavor is expected to own a 51 percent stake in the new combat sports and entertainment company, while WWE shareholders will receive 49 percent, according to the people. The Endeavor deal gives WWE an enterprise value of $9.3 billion, they said.

Emanuel is expected to serve as chief executive officer of both Endeavor and the new company. Likewise, McMahon is expected to serve as executive chairman, while Endeavor President Mark Shapiro will also assume the same role at the new company. Dana White will remain the president of the UFC, while WWE CEO Nick Khan will be the president of the wrestling business.

The development comes on the same weekend WWE hosted its flagship live event, WrestleMania, in California. The company has spent the past several months looking for a buyer. McMahon returned to the company as president in January to process monitoring. Shares of WWE are up more than 33% this year, giving it a market value of more than $6.79 billion.

This agreement will effectively end WWE’s decades-old status as a family-run business. McMahon’s father founded WWE in its early days in the mid-20th century, and McMahon is the company’s controlling shareholder. McMahon bought the company from his father in 1982. Since then, the company has grown into a global phenomenon, spawning hit stars like Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.

McMahon, 77 years old, retired from the company in July following a series of revelations that he had paid several women millions of dollars over years to keep them quiet about alleged incidents and misconduct. His daughter, Stephanie McMahon, became co-CEO alongside Khan. Paul Levesque, husband of Stephanie McMahon and wrestler known as Triple H, took on creative duties from Vince McMahon.

When Vince McMahon returned in January, Stephanie McMahon stepped down and Khan took over the CEO role entirely. Elder McMahon was recently locked in a two-year labor contractfollow a stock records.

Khan in recent weeks has appeared in the media to discuss the possibility of a sale. He told CNBC’s Morgan Brennan on Thursday that it was a strong selling process, attracting many interested buyers.

WWE delivers a powerful live events and media business, along with decades of intellectual property. The company generated $1.29 billion in revenue last year, main control by its $1 billion media unit.

The UFC has paid off for Endeavor. Last year, the MMA tournament helped Endeavor’s sports business earn $1.3 billion in revenue. Endeavor’s market capitalization stood at about $10.53 billion as of the end of Friday. The Endeavor-WWE deal values ​​the UFC at more than $12 billion.

WWE, at least at a glance, will also fit in well with the cultures at Endeavor and the UFC. McMahon has a rough personality in public, making him an obvious match for Emanuel and White, who are also known for their Extraordinary personality.

White, like McMahon, is no stranger to scandal either. Earlier this year, video emerged showing the UFC boss slap wife during a public debate at a New Year’s Eve party in Mexico. White sorry.

Disclosure: Peacock, the streaming service owned by CNBC’s parent company NBCUniversal, hosts WWE events like WrestleMania.