Want more wrestling news, rumors, and results? Be sure to visit PWInsider.com and PWInsiderXtra.com.
Some huge news broke at the beginning of April, and, thankfully, it was after the April Fools’ holiday, otherwise it would have had many finding it a story that was too hard to believe and almost rather unfathomable to comprehend.
Unless you have been living under a rock, World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) are both set to form a new brand together in a deal that was completed recently. It is believed that the two promotions will form to create a new $21 billion sports entertainment brand that will be run under the name of Endeavor.
Endeavor Group Holdings Inc. is the current owner of the UFC promotion and will take a 51% controlling interest while existing WWE shareholders will obtain the final 49% as their stake. As a result, the deal will combine two of the biggest names in sports entertainment under one umbrella.
UFC is valued at $12.1 billion in the deal, while the WWE was valued at $9.3 billion, with each share being priced at $106. Since the deal was struck, shares have been impacted in different ways by each company. Unsurprisingly, Endeavor saw its share price soar by 4% following the announcement, while WWE’s share price dropped 4.5% in trading.
The WWE is the biggest professional wrestling promotion around the world, while the UFC is equally viewed in the same light in regard to combat sports and MMA. Many have taken a key interest in what both sports have to offer, from an entertainment point of view, as well as from a sports betting experience.
Punters have been able to get competitive WWE and UFC odds because of the popularity of each promotion, as fans are able to watch the biggest fights continue to take place inside the respective ring structures. This has led to an increase in sports wagering as millions of fans can not wait to place the best bets on the contests that take place between the biggest athletes across both disciplines.
There may have been some placing bets on the outcome of the sale of the two organizations, as it was known a sale was on the cards for the wrestling behemoth. McMahon revealed in January that he would be exploring options, but Endeavor’s capture is one that may have caught some off guard.
The deal is said to have taken a month to negotiate, with Vince McMahon overseeing things from WWE’s point of view. The co-founder and executive chairman of the wrestling company will keep his role in the new company once it is formed, although the name of that brand is yet to be unveiled. Ari Emanuel, who is the CEO of Endeavor, is set to be the lead as the chief executive officer as well as continuing in his role as CEO for the company.
Emanuel has experience of transforming Endeavor and turning it into a powerful sports and entertainment company, as he has overseen a number of acquisitions in the past. Despite the organization’s roots in film and television, they have invested in various sports competitions, such as tennis tournaments, as well as in other forms of entertainment like fashion shows.
Amid the news of a merger, there will be reasonable doubt about whether the quality of the product being offered will remain the same, or whether it will be impacted positively, or negatively.
Endeavor has already revealed that it will look to adopt the same approach that it has used to ensure that UFC remains as successful as possible. This has involved improving operating efficiency and striking new deals that involve the media and licensing, among other things.
It has worked for the MMA company, as UFC has seen its revenue grow since it took over, while they have also managed to double its EBITDA (earnings before interest, taxes, depreciation, and amortization) since 2017.
If they can have the same impact on the WWE, then the sports company will certainly have two of sports entertainment’s cash cows in its portfolio. However, many will argue that the WWE needs to undergo serious improvement to its product, as some have become frustrated with the stories that are played out in the ring.
If they can improve this, and help get the right people in place, then perhaps the wrestling company can be as equally valuable as the UFC.
If you enjoy PWInsider.com you can check out the AD-FREE PWInsider Elite section, which features exclusive audio updates, news, our critically acclaimed podcasts, interviews and more by clicking here!
Bang On Casino
