UFC parent Endeavor to purchase 51% stake in WWE
Hours before its signature event, WrestleMania 39, got underway Sunday at SoFi Stadium in Inglewood, California, a report on CNBC.com indicated that UFC parent company Endeavor was poised to purchase the WWE, the world's leading wrestling brand, in a mega-deal.
Endeavor announced the deal on Monday, stating that they have signed a deal to acquire a 51% stake in WWE and merge it with UFC in a new company that would be headed by Endeavor CEO Ari Emanuel.
WWE CEO Nick Khan did not respond to requests for comment from Yahoo Sports.
Endeavor acquired controlling interest in the UFC in a massive $4.25 billion deal in 2016. It bought out the remaining shareholders in 2021 to become 100% owners. On the Endeavor earnings call Feb. 28, Emanuel said revenue in its owned sports division was $301.4 million, up 9% year over year. He credited that to higher rights fees at UFC, pay-per-view revenue, sponsorship and licensing.
Emanuel was asked about a potential purchase of WWE on that earnings call. He said then of WWE executive chairman Vince McMahon, "His business is really valuable." But Emanuel also said, "We're not going to do anything that would increase our leverage at this point in time."
The combined UFC-WWE company will give Endeavor a ratings monster. Sportico reported on Friday that the WWE's "WWE Raw," which airs on USA Network, is the highest-rated show on cable. It averages 1.83 million viewers, a 9% year-over-year increase. Most importantly, it's averaging 695,049 viewers in the 18-49-year-old demographic, making it first in that demo and an 18% increase over 2022.
Similarly, the UFC has done great numbers. At its last show, a mid-afternoon card on ESPN on March 25 in San Antonio, Texas, it attracted 976,000 viewers, putting it sixth on cable for the day. Nos. 1 through 5 were all from the NCAA basketball tournament.
WWE's television contracts expire in October 2024, and Sportico reported Friday that Khan was ready to begin negotiations on new deals Monday.
