Why The UFC-WWE Merger Would Be Tax-Free For Shareholders

  • 📰 Forbes
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 53%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Just because Ari Emanuel and Vince McMahon may become a lot richer doesn’t mean Uncle Sam is going to make money, too.

of UFC and WWE is completed as proposed, the current shareholders of Endeavor Group Holdings—UFC’s parent, led by Emanuel and listed under the ticker symbol EDR—and WWE, with McMahon as executive chairman, will not pay any taxes. That doesn’t mean there’s anything nefarious going on in the deal. Rather, the tax-free transaction for shareholders has to do with the way the new corporation is being structured.

As tax expert Robert Willens explains, “to accomplish these goals, WWE will form a vertical chain of corporations, New PubCo, and its wholly owned subsidiary, Merger Sub. Merger Sub will be merged with and into WWE. WWE will be the surviving corporation in said merger and will become, for a moment anyway, a wholly subsidiary of New PubCo.

“Thus,” Willens says, “when the dust settles, the stock of New PubCo will be owned by EDR and the former WWE shareholders, with the former holding 51%, and the latter owning 49%, respectively, of the stock of New PubCo.” Willens notes that the transaction should qualify as a reorganization under Section 368 of the federal tax code: a “mere change in identity, form or place of organization of one corporation, however effected.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Let WWE be WWE; never to change

Bullshiiiiiieeeeet... Let WWE be WWE; never to change

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breakingviews - WWE and UFC merger mania is quite the production: podcastThe wrestling heavyweight has agreed to merge with Endeavor’s mixed martial arts franchise in a $21 bln deal. In this Viewsroom episode, Breakingviews columnists discuss why the transaction makes sense strategically, but the financial logic is contorted.
Source: Reuters - 🏆 2. / 97 Read more »

WWE and UFC merger mania is quite the production by ViewsroomThe wrestling heavyweight has agreed to merge with Endeavor’s mixed martial arts franchise in a $21 bln deal. In this Viewsroom episode, Breakingviews columnists discuss why the transaction makes sense strategically, but the financial logic is contorted.
Source: Breakingviews - 🏆 470. / 51 Read more »

WWE and UFC merger mania is quite the production by ViewsroomThe wrestling heavyweight has agreed to merge with Endeavor’s mixed martial arts franchise in a $21 bln deal. In this Viewsroom episode, Breakingviews columnists discuss why the transaction makes sense strategically, but the financial logic is contorted. Breakingviews NetoStreisand JMAGuilford jennifersaba That's Huge Breakingviews NetoStreisand JMAGuilford jennifersaba And. So? Breakingviews NetoStreisand JMAGuilford jennifersaba End of an era.
Source: Reuters - 🏆 2. / 97 Read more »