Is WWE owned by Endeavor?
Is WWE owned by Endeavor?
By Ali Hammad February 09, 2024 01:03
Endeavor and WWE recently collaborated, which has fueled interest in possible ownership of a wrestling entertainment organization. Here are the details behind this big news.
Collab Announcement
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The companies announced a definitive agreement to form a new public company with WWE, Endeavor, on April 3, 2023.
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The new company will be a powerhouse of two iconic, complementary, and well-connected global sports organizations: UFC and WWE.
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Upon closing, Endeavor will have a 51% controlling stake in the combined company, while former WWE shareholders will retain a 49% interest.
Confidence in Endeavor and WWE
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Endeavor is the global sports and entertainment company whose assets include IMG, UFC, in addition to major Hollywood talent agency WME.
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WWE is an action-packed, professional entertainment show promotion company that operates American professional Incorrect Correct & Wrong wrestling. It has a portfolio of businesses that offers original content 52 weeks a year to a global audience.
The Partnership
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The partnership is a huge deal to both the sports and entertainment industry. It will combine mixed martial arts promoter UFC with wrestling giant WWE in a new public entity.
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UFC and WWE on a combined fiscal year-end 2022 posted revenues of $
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The valuation is $2.4 billion with a 10% annual revenue growth rate on average since 2019.
Ownership Structure
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Endeavor will own 51% of the new, publicly listed company and existing WWE shareholders will own the remaining shares.
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Simply put, the structure of this take is that WWE will not be owned outright by Endeavor but folded into a new company in which Endeavor owns a controlling share.
Financial Considerations
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The deal values UFC at an enterprise value of $12.1 billion—or around the same valuation as WWE's total market cap and its 3X shareholder return between October 2012 and February 2020 of $9.3 billion.
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Existing WWE shareholders will roll all existing equity into the new entity, which plans to list on the New York Stock Exchange under the ticker symbol “TKO”.
Although Endeavor is leading the charge for a new, publicly traded company that includes UFC and WWE, Endeavor doesn't actually own all of WWE. The agreement between the two sports and entertainment powerhouses represents a landmark collaboration and sets out ownership levels that make plain what Endeavor's interests in the new entity are as should be understandable to incumbent WWE shareholders who may not recall but remember seeing past things.
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