WWE sold to UFC-owner Endeavor in $9.3 billion deal, combined valuation at $21 billion

Under the acquisition agreement, the Endeavor shareholders will own 51% of the combined company and the remaining 49% will be with WWE shareholders. The deal represents a contribution price of $106 per share for WWE, 16% higher than its closing on Friday, Endeavor said.

“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, the executive chairman of WWE said in a statement on Monday.

In January, WWE announced that it would explore various strategic alternatives, which could potentially include selling the company. This announcement was made shortly after Vince McMahon, the long-time CEO, returned to the company in his new role as executive chairman. To aid in this review, WWE hired the Raine Group and Kirkland & Ellis as advisers.

Last year, in July, Vince McMahon retired from his position as CEO and chair following an inquiry into allegations of his wrongdoing. Stephanie McMahon, who was the co-CEO and was handling the company alone after her father’s departure, resigned one week after Vince returned to the board in January.

For Endeavor’s CEO Ari Emanuel, the deal is a significant accomplishment as he has successfully converted his talent agency into a diversified media conglomerate, thereby cementing his position as one of the most influential executives in the entertainment industry.

Endeavor’s objective is to capitalize on the increasing popularity of live events, which continue to play a critical role in the broadcasting strategies of cable TV networks and digital platforms such as YouTube, that are procuring the rights to air such events. As part of this venture, Emanuel will head the new company as its Chief Executive Officer while also maintaining his current position at Endeavor.

(With inputs from agencies)