April 10, 2023 Observer Newsletter: Endeavor to acquire WWE and merge with UFC, WrestleMania 39
World Wrestling Entertainment has agreed to a deal with Endeavor that will lead to the formation of a new company, currently called NewCo, but that could be changed. Its name on the stock market looks to be TKO, and the new company will combine UFC and WWE.
The merger of the two similar dominant brands in their respective industries is expected to be finalized and the company is to go public in four to six months. If, for whatever reason, the merger isn’t finalized by the start of 2024, which is unlikely to happen, the deal will fall apart. The idea is to create a company with a stock market value of $21.3 billion, based on a valuation of UFC at $12 billion and WWE at $9.3 billion.
These are claimed valuations from the new company and there is no actual cash changing hands, as this is a merger and not an acquisition. Vince McMahon did not sell WWE as much as merge it with UFC and he will remain a key person in power with the new company. Basically McMahon and Ari Emanuel will be the key decision makers for WWE business going forward, while Nick Khan goes from his role of CEO to WWE President. Paul Levesque remains in charge of creative, but Vince McMahon will have influence and power over all the major creative decisions and could have power over all decisions as things played out during the week.
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Dave Meltzer is the founder and lead writer on the Wrestling Observer Newsletter, the weekly constant when it comes to news and reviews in pro wrestling and mixed martial arts for more than 40 years. Dave also co-hosts Wrestling Observer Radio with Bryan Alvarez and had had bylines for The National, Yahoo Sports, MMA Fighting and others.