Endeavor: WWE-UFC Merger ‘Crystalizes’ Value of Entertainment Franchises, Combo to Yield up to $100 Million Cost Savings

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Endeavor is bringing together two of the world’s biggest combat-sports franchises — UFC and WWE — in a blockbuster merger announced Monday. It’s a deal in which “one p…

, who will serve in the same role for the merged UFC-WWE. The pact, valuing the combined company at roughly $21.4 billion, is anticipated to close in the second half of 2023.

In addition, the deal to combine UFC with WWE will be debt-free, Shapiro noted. Following the close of the UFC-WWE deal, Endeavor will have a debt-to-equity ratio of 2.8X while “NewCo” will be 2.5X levered. The deal “crystalizes value on both sides,” meaning the UFC-WWE merged entity and the Endeavor business ex-UFC, said Shapiro.

Endeavor’s WME has repped Vince McMahon and WWE for two decades, and that execs at the companies have spit-balled a theoretical combination of UFC and WWE for years. Previously, Shapiro said, “it was just casual conversation” — but onceUFC for $4.1 billion “We built UFC using the Endeavor flywheel across a myriad business verticals,” including sponsorships, media rights licensing, and “event operations expertise,” said Shapiro. “That same recipe will be applied to WWE.”

 

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