UFC parent Endeavor to buy WWE in $21bn deal

UFC parent Endeavor Group said on Monday that it has agreed to buy World Wrestling Entertainment (WWE) in a $21bn deal.

Upon closing, Endeavor will hold a 51% controlling interest in the new company and existing WWE shareholders will hold a 49% interest.

The transaction values UFC at an enterprise value of $12.1bn and WWE at $9.3bn. It represents a contribution price of WWE of around $106 per share. In addition, UFC and WWE will each contribute cash to the new company so that it holds around $150m.

Endeavor chief executive Ariel Emanuel said: "This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed.

"For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together."

Vincent K. McMahon, executive chairman of WWE, said: "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 monetisation, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands."