World Wrestling Entertainment, Inc. Chairman Vince McMahon enters the ring during the WWE Monday Night Raw Show at the Thomas & Mack Center in Las Vegas, Nevada on August 24, 2009.
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Vince McMahon world wrestling entertainment Negotiations underway to sell to Ali Emmanuels endeavor groupThe parent company of the UFC, according to a person familiar with the matter.
The deal could also be announced on Monday. UFC and WWE will form a new public company as part of the deal, the sources said, asking not to be identified because of the confidential nature of the negotiations.
Endeavor will own 51% of the new combat sports and entertainment company, with WWE shareholders acquiring 49%, according to people familiar with the matter. A deal with Endeavor would give WWE an enterprise value of his $9.3 billion, they said.
Emmanuel will serve as CEO of both Endeavor and the new company. Similarly, McMahon is expected to become executive chairman of him, and he, Endeavor President Mark Shapiro, will also serve in the same role in the new company. Dana White will remain president of the UFC, while WWE CEO Nick Kahn will serve as president of the wrestling business.
The development comes on the same weekend WWE hosts its flagship live event, WrestleMania, in California. McMahon returned to the company as chairman in January, oversee the processWWE stock is up more than 33% so far this year, with a market value of over $6.79 billion.
The deal effectively ends WWE’s decades-long status as a family-owned business. McMahon’s father founded WWE in the mid-20th century and McMahon is the controlling shareholder of the company. McMahon bought the company from his father in 1982. Since then, the company has grown into a global phenomenon, spawning stars such as Hulk Hogan, Dwayne “The Rock” Johnson, Dave He Bautista, and John Cena.
McMahon, 77, retired from the company In July, he received a series of revelations that he had paid millions of dollars to several women over the years to keep them silent about alleged affairs and wrongdoings. One Stephanie McMahon became co-CEO with Khan. Stephanie McMahon’s husband and wrestler Paul Levesque, better known as Triple H, took over creative duties from Vince McMahon.
When Vince McMahon returned in January, Stephanie McMahon stepped down and Khan fully assumed the CEO role. Elder McMahon recently 2 year employment contractaccording to, securities filing.
Khan has been touring the media in recent weeks to discuss a potential sale. He told CNBC’s Morgan Brennan on Thursday that it’s been a solid sales process and has drawn many interested buyers.
WWE brings a strong media and live events business with decades of intellectual property. The company made $1.29 billion in revenue last year. mainly driving In a billion dollar media unit.
The UFC paid off for Endeavor. Last year, the MMA league helped Endeavor’s sports business generate his $1.3 billion in revenue. Endeavor’s market cap was around $10.53 billion at the close of business on Friday. With Endeavor and his WWE contract, the UFC’s value exceeds his $12 billion.
WWE, at least on the face of it, fits in well with Endeavor and UFC culture as well. extraordinary personality.
Like McMahon, White is no stranger to scandals either.Earlier this year, a video appeared showing the UFC boss spanking wife During a public debate at a New Year’s Eve party in Mexico.
Disclosure: Peacock, a streaming service owned by CNBC’s parent company NBCUniversal, does WWE events such as WrestleMania.
