Getty Dana White and Vince McMahon.
The UFC’s parent company, Endeavor Group Holdings Inc., and World Wrestling Entertainment Inc. have announced the signing of a definitive agreement to establish a new publicly listed company comprising two globally recognized sports and entertainment brands — UFC and WWE.
Per the agreement, Endeavor will hold a 51% controlling interest in the new company, while existing WWE shareholders will retain a 49% interest. The combination of these two popular brands is expected to create a powerful entity in the industry.
“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,” Vince McMahon, WWE’s executive chairman, said in a statement.
Endeavor CEO Ari Emanuel will lead the new unnamed company and McMahon will serve in the same role at the new company. Meanwhile, Dana White will remain the president of UFC and Nick Khan will continue to serve as the president at WWE.
The deal is a “huge victory” for McMahon, who “returned to the company suddenly in January amid sale talks, following his disgraced exit in 2022,” according to an Axios story.
What Does the Merger Mean for UFC?
The merger of UFC and WWE is aimed at increasing revenue and reducing costs for both organizations, according to the Endeavor press release from April 3. This is expected to be achieved through sharing resources and utilizing Endeavor’s “robust infrastructure,” the release said.
The new company marks a shift in authority, as Dana White, the president of the UFC and a prominent figurehead for the organization, will now work under McMahon and Emanuel, suggesting there could be some similarities between the event and fight promotions of the UFC and WWE going forward.
As for what the merger could mean for UFC, fighter Jake Paul tweeted: “UFC + WWE makes too much sense. Great path to increasing fighter pay.” Paul had in the past “accused the UFC of exploiting its athletes and underpaying them,” according to MMA News.
Khan said the two companies will pursue separate media rights for the broadcasting of events on traditional TV but said “there could be an opportunity to pursue a combined streaming deal,” according to a story by Axios’ Sara Fischer.
The New York Times wrote that McMahon and Emanuel are “betting that traditional TV companies and video-streaming giants will continue to pay top dollar for the rights to show live events — including scripted and unscripted fights.”
In an interview with The New York Times, Emanuel “was enthusiastic about the possibility of creating shows and movies from W.W.E. characters, calling them ‘superheroes,'” the Times’ Benjamin Mullen wrote. “Mr. Emanuel described the company’s intellectual property rights as ‘some of the greatest I.P. in the world.'”
A ‘Symbiotic Relationship’ Between UFC & WWE
Furthermore, the companies plan to increase revenue by expanding into new markets, acquiring more sponsors, and selling more tickets, according to the press release. McMahon, in the release, cited Endeavor’s success with the UFC as a crucial factor in the decision to combine the two organizations:
“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.”
McMahon alluded to the symbiotic relationship the WWE and UFC have had in the past, according to the release. With superstars such as Brock Lesnar and CM Punk transitioning to the UFC, and fighters like Ronda Rousey and Cain Velasquez finding massive success in the WWE.
It remains to be seen how this merger will play out and how successful it will be in achieving the intended goals.
GettyBrock Lesnar.
Additionally, it is anticipated that promotional content from WWE will be broadcast during UFC events, and vice versa. The combination of the UFC and WWE under one roof has the potential to shake up the sports and entertainment industry.
“Must-watch TV is a rarity these days,” Mark Shapiro, Endeavor’s president and chief operating officer, said in The New York Times story. “And unicorns like the U.F.C. and W.W.E. will be heavily in demand.”