With the news made official Monday morning that Endeavor will acquire WWE and merge them with UFC to create a new publicly traded combat sports company, Vince McMahon has spoken.
The WWE Executive Chairman, who will hold the same title in the new company, was quoted in WWE's press release announcing the deal, saying it was "the best outcome for our shareholders and other stakeholders."
"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 $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands. I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level.”
"Ari" is Ari Emanuel, the Hollywood power broker who is the CEO of Endeavor.
The deal still has to clear regulatory hurdles, but could be closed by year's end if it does. Endeavor will own 51% of the unnamed company (trading under the TKO stock symbol) with the other 49% to be owned by WWE shareholders.
The $21 billion number is the combined announced valuation of WWE ($9.3 billion) and UFC ($12.1 billion) with the market to determine what the company is truly worth.
McMahon announced the news to employees and there will be a 4 PM Eastern all-hands call regarding the transaction (via Wrestlenomics' Brandon Thurston):
"I'm excited to announce that WWE has entered into a partnership with Endeavor to create a one-of-a-kind company that will bring together two global sports and entertainment powerhouses: WWE and UFC.
"The historic alliance of these two formidable institutions has the potential to unlock vast growth opportunities for both organizations and generate an optimal outcome for our employees, shareholders, fans, and other stakeholders
"We are huge admirers of the work Endeavor has done to grow the UFC brand, and they will be the perfect partner to help supercharge our growth at WWE."
Nick Khan will remain on as president of WWE under the new company as will UFC president Dana White.
McMahon and Khan signed new employment agreements last week.
WWE first became a publicly traded company in October 19, 1999, selling 11.5 million shares at $17.00/share. As of 8:30 AM Eastern, pre-market trading had shares down to $85.26, down 6.5% from Friday's closing price of $91.26.
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