WWE to merge with Endeavor-owned UFC to create $21.4-billion entertainment company

World Wrestling Entertainment (WWE) merged with the company that runs Ultimate Fighting Championship(UFC) to form a publicly traded $21.4 billion sports entertainment company.

The newly formed company will include both the UFC and WWE brands, with Endeavor Group Holdings Inc. acquiring a 51 per cent controlling stake in the new company. Existing WWE shareholders will hold a 49% stake.

While the Endeavor CEO Ari Emanuel will lead the company, Vince McMahon, executive chairman at WWE, will remain at the same position in the new company.

This development comes at a time when Vince McMahon, the founder and majority shareholder of WWE came back to the company in January and hinted the possibility of the sale.

Before the announcement, there were rumours doing rounds on the name of the companies which included Endeavor, Disney, Fox, Comcast, Amazon and Saudi Arabia's Public Investment Fund.

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The report further stated that the experts had seen WWE as a great acquisition, thanks to its loyal fanbase and huge global reach. 

The company held its marquee event, WrestleMania, over the weekend. Last year, WWE booked revenue of $1.3 billion.

In terms of social media reach, the company crossed 16 billion social video views in the final quarter of last year. It comes with nearly 94 million YouTube subscribers and has more than 20 million followers on TikTok. The female wrestlers have a huge fanbase on socia media and they come within top 15 most followed female athletes in the world, across Facebook, Twitter & Instagram.

In January and February, WWE had over 7.5 billion digital and social media views this year, an increase of 15 per cent from the same time frame a year ago.

Shares of World Wrestling Entertainment Inc., based in Stamford, Connecticut, slumped 4 per cent before the opening bell Monday. Shares of Endeavor, based in Beverly Hills, California, rose 3 per cent.