Endeavor said to be closing in on blockbuster $9.3bn deal to acquire WWE
Hollywood media giant Endeavor is reportedly nearing a deal to acquire World Wrestling Entertainment (WWE) in a deal valuing the professional wrestling promotion at around US$9.3bn.
Ari Emanuel
Under the transaction, WWE and Endeavor-owned mixed martial arts company Ultimate Fighting Championship (UFC) would combine to form a new publicly traded company. CNBC was first to report the news.
The blockbuster deal would see Ari Emanuel-led Endeavor own 51% of the newly formed entity, with WWE shareholders owning the remaining 49%.
According to CNBC, Emanuel is expected to be CEO of both Endeavor and the new company, while Vince McMahon, WWE’s longtime head and largest shareholder, will be executive chairman.
Endeavor president Mark Shapiro will serve in the same capacity at the new company, with UFC president Dana White remaining in his current role and WWE CEO Nick Khan serving as president of the wrestling business.
While WWE and UFC would sit alongside one another in the new company, it is unlikely the companies would be integrated because WWE’s product is scripted and has pre-determined results while the UFC’s does not.
WWE has been exploring a sale since early January when it was revealed that McMahon was returning to the company. Six months before, he had retired from the organisation after it emerged he had paid millions of dollars in hush money amid accusations of sexual misconduct and extra-marital affairs.
Vince McMahon
Reports of the deal come as WWE prepares to renegotiate TV rights in the US. Currently, Comcast-owned Peacock has exclusive streaming rights to WWE content in the US, while Comcast’s USA Network holds the linear rights to WWE’s weekly Monday-night show Raw and Fox holds linear rights to Smackdown, which airs on Fridays. There are thought to be several other interested parties vying for the various rights when they come up for renewal.
In addition to its live events business, which includes marquee pay-per-view events including WrestleMania and the Royal Rumble, the deal will also bring a mammoth IP library and the rights to numerous well-known wrestling characters under Endeavor’s control.
For Endeavor, the deal comes almost seven years after it shook the world of combat sports with its acquisition of the UFC for around US$4bn.
More recently, the company, which went public in 2021, sold the scripted part of Endeavor Content to South Korea’s CJ ENM for about US$785m and last month made a significant investment in US-based unscripted production group Asylum Entertainment Group.
