Two of the biggest brands in fighting and sports entertainment have now joined forces to become a single company. Thanks to a merger, WWE and UFC are now officially part of the new TKO Group Holdings. Apart from this, a new parent company called Endeavor is also fully functional. Let’s take a look at what we know so far about the WWE x UFC merger and what TKO holds for the future of combat sports.
WWE and UFC’s merger explained
The wrestling entertainment company and MMA fighting brand have now become stronger than ever thanks to the deal. The decision came after a long process of parent companies buying out subsidiaries and, of course, WWE Chairman Vince McMahon’s controversy.
This is the view outside the New York Stock Exchange this AM.
Massive day for UFC, WWE and Endeavor.
TKO Group Holdings will trade on the New York Stock Exchange as of today under the ticker symbol TKO. The deal is official. pic.twitter.com/ugmLXfEK3Y
— Ariel Helwani (@arielhelwani) September 12, 2023
While the TKO brand was born out of this merger, both brands are now part of the bigger parent company, Endeavor. This entity wholly bought UFC’s parent company, Zuffa, in 2021, which they have now merged with WWE to create TKO Group Holdings.
Thus, TKO is a subsidiary company of Endeavor and Ari Emanuel would serve as the CEO of both companies. Endeavor will have 51% share in the new company while WWE’s shareholders will take 49%.
Meet TKO Group Holdings, Inc. a premium sports, entertainment, and media company made up of @ufc and @WWE.
Join us in celebrating its listing of $TKO 🔔 pic.twitter.com/ZWEmyWGUCq
— NYSE 🏛 (@NYSE) September 12, 2023
This powerhouse deal has resulted in the formation of a $21.4 billion sports entertainment company. Together, they will have an estimated one billion fans from over 180 countries around the world.
All details about TKO Group Holdings
As mentioned earlier, TKO Group Holdings came to exist out of necessity after WWE and Endeavor agreed to a deal to merge the wrestling brand with Zuffa which owns UFC. Earlier yesterday, the company went live on the New York Stock Exchange.
Due to this, WWE’s shares will stop trading and instead they will use the ticker name ‘TKO’. Shares have already risen by 2.7% since the announcement. According to Endeavor, the merger will result in an estimated $50-100 million in yearly cost synergies.
According to TKO’s president and COO Mark Shapiro, the first 18 months of the company’s existence will revolve around integrating the operations of WWE and UFC. As a result, we can expect new international media deals for both brands.
Who will run WWE and UFC?
Both WWE and UFC are synonymous with Vince McMahon and Dana White respectively. As the two companies have now merged into TKO Group Holdings, fans are curious to know what their responsibilities are.
According to the new agreement, the 78-year-old Vince McMahon will serve as Executive Chair of TKO. He has the right to select five out of eleven directors of the company. McMahon will personally own 34% of the new group holdings.
Today, Vince McMahon is officially no longer a majority owner of WWE after multiple decades. pic.twitter.com/nGekFEe91p
— Wrestle Ops (@WrestleOps) September 12, 2023
While Vince McMahon has run WWE for over 40 years, his recent legal issues, particularly related to sexual misconduct allegations, took a toll on his reputation. Similarly, former UFC president Dana White also has domestic abuse allegations against him.
Regardless, Ari Emanuel of Endeavor will dictate the terms at the newly formed TKO Group Holdings with significant contributions from Vince McMahon and Dana White.
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