UFC parent Endeavor Group to acquire WWE in $9.3 billion deal
FILE PHOTO: The Endeavor Group Holdings Inc. (EDR) logo hangs from the New York Stock Exchange on the morning of its public listing at the NYSE in New York City, U.S., April 29, 2021. REUTERS/Shannon Stapleton/File Photo
Endeavor Group Holdings Inc, the parent of the popular UFC mixed martial arts franchise, said on Monday it will acquire entertainment firm World Wrestling Entertainment Inc in a deal valued at $9.3 billion.
Endeavor said the deal represents a contribution price of about $106 per share for WWE, which is about 16% higher than the stock’s Friday closing.
Article continues after this advertisementUnder the agreement, Endeavor shareholders will own 51% of the combined company, while WWE shareholders would get 49%.
Shares of WWE were down 4.5% in trading before the bell, while Endeavor, led by Hollywood power broker Ari Emanuel, was up 4%.
In January, WWE said it would explore strategic options that could include a sale, shortly after longtime CEO Vince McMahon’s return to the company as its executive chairman. It hired Raine Group and law firm Kirkland & Ellis as its advisers for the review.
Article continues after this advertisementMcMahon had retired in July last year as the company’s CEO and chair, following an investigation into his alleged misconduct. Co-CEO Stephanie McMahon, who single-handedly managed the mantle when her father exited, resigned a week after he returned to the board in January.
