The New York Post reported that Ari Emanuel's Endeavor Group, the parent company of UFC, is close to acquiring Vince McMahon's World Wrestling Entertainment (WWE) in an all-stock deal. According to sources familiar with the matter, the deal can be announced as early as this week. Endeavor shareholders are expected to hold 51% of the combat and entertainment company, while WWE shareholders would own 49%, as per CNBC.
Endeavor has been working to transform into a sports and entertainment powerhouse, making more than 20 acquisitions. Its investments in bull riding events, fashion shows, and tennis competitions have sought to diversify the company, which grew from a legacy rooted in representing film and television talent. The Ultimate Fighting Championship, the world's largest martial arts organization, was taken over by Endeavor in 2016 in a $4.2 billion deal, and the remaining stake was acquired along with its IPO five years later.
WWE shares have risen over 30% this year, closing at $91.26 on Friday, giving the company a market capitalization of $6.8 billion. On the other hand, Endeavor has a market value of $11.3 billion.
Company's CEO and chair in July last year following an investigation into his alleged misconduct. His daughter, Stephanie McMahon, resigned as the company's co-CEO and chair less than a week after her father returned to the board. Upon his return, McMahon, who holds a majority of the company's stock, launched a strategic review, seeking to negotiate a sale before WWE's media rights, including for programs such as "SmackDown," came up for renegotiation, according to published reports.
The acquisition of WWE by Endeavor Group would mark a significant shift in the landscape of combat and entertainment companies, with the two merging to create a formidable force in the industry. The deal is expected to generate a lot of interest among investors and analysts, with many eagerly waiting for the announcement expected later this week
0 Comments