• by Wayne Friedman , April 3, 2023

In a deal intended to expand live sports and entertainment streaming, Endeavor Group Holdings has agreed to merge its UFC unit with World Wrestling Entertainment (WWE) in a $21 billion deal.

WWE shareholders will have a 49% interest. The company says UFC and WWE have had a total revenue of $2.4 billion per year. Since 201, the combined companies have seen an 10% annual revenue growth rate.

Endeavor will hold a 51% controlling interest in the new company. 

Ari Emanuel will continue as chief executive officer of the combined company, and Vince McMahon will be executive chairman.

In other personnel changes, Mark Shapiro will be president/chief endeavor officer of Endeavor. Dana White will be president of UFC and Nick Khan will be president of WWE.

The new company is expected to deliver between $50 million and $100 million in annual synergies savings.

Endeavor stock price opened on Monday down 1.1% to $23.66. WWE stock was down 9% to $83.25.

“UFC Fight Night” show runs on ESPN networks, including ABC and streamer ESPN+. The WWE Network runs exclusively on the Peacock streamer platform.

WWE also has a deal for its WWE “Friday Night Smackdown” on the Fox Television Network.

National TV ad revenue for the previous 12-month period was estimated at $54.3 million, according to iSpot.tv.

Analysts were somewhat surprised that McMahon would be continuing in an active role, following allegations that he made payments to women to prevent his sexual misconduct over a 16-year period from becoming publicized.

Last week, in a filing, WWE said McMahon paid back the company $17.4 million connected to those payments while he was chief executive officer.

McMahon departed his role as chief executive officer in June 2022, only to return to a role as executive chairman earlier this year.