UFC and WWE: UFC News: A historic day has dawned as the worlds of mixed martial arts and professional wrestling collide. The biggest names in each industry, UFC and WWE, have merged to create a sports and entertainment powerhouse worth a staggering $21 billion. It’s hard to believe that UFC, once a humble $2 million purchase by the Ferrita brothers, just like Vince McMahon’s WWE is now a billion-dollar company, thanks to its massive popularity and success. So, let’s do the transaction analysis to evaluate who got higher stakes. Follow UFC News Updates with InsideSport.IN.
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The merger is a game-changer for both companies, who can now leverage each other’s strengths and resources to revolutionize the sports and entertainment industry. Talking about the transaction details, the merger values UFC at an impressive enterprise value of $12.1 billion, while WWE comes in at $9.3 billion.
The contribution price of WWE in the new company is around $106 per share, prior to any post-closing dividends. Both UFC and WWE will contribute cash to the new company, adding up to a total of $150 million. At closing, Endeavor plans to sweep up any excess cash at UFC, and shareholders of the new company, excluding Endeavor, can expect a post-closing dividend.
Endeavor is set to control a significant 51% stake in the new company, while existing WWE shareholders will hold a 49% stake. With their combined forces, UFC and WWE will have an international reach, impressive scale, and omnichannel distribution, leaving no stone unturned in the world of sports and entertainment.
Notably, on a combined fiscal year-end basis in 2022, UFC and WWE recorded a whopping $2.4 billion in revenue, with a remarkable annual revenue growth rate of 10% since 2019. This is an unprecedented feat that speaks volumes about the potential of this collaboration, and the heights it can reach in the years to come.
Positions
The formidable trio of Emanuel, McMahon, and Mark Shapiro will be at the helm, with Emanuel continuing his role as Chief Executive Officer of Endeavor, McMahon taking on the Executive Chairman of the Board position, and Shapiro serving as President and Chief Operating Officer of both Endeavor and the new company.
But that’s not all – as White continues to hold his position as President of UFC, and Khan steps up as President of WWE. And with a Board of Directors consisting of 11 members, appointed by both Endeavor and WWE, the stage is set for a truly dynamic and game-changing collaboration.
The sports and entertainment world has never seen anything like this before – with the biggest brands in combat sports and pro wrestling joining forces, the possibilities are endless. So get ready to witness history in the making, as UFC and WWE come together to create a new era of sports and entertainment that will leave fans breathless.
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