Endeavor nears deal to buy Vince McMahon’s WWE: sources

ENDEAVOR Group Holdings, the parent of the popular UFC mixed martial arts franchise, is in advanced talks to acquire World Wrestling Entertainment (WWE) in an all-stock deal, according to people familiar with the matter.

The sources requested anonymity because the matter is confidential. Endeavor and WWE did not immediately respond to requests for comment on Sunday (Apr 2).

The deal could be announced as early as this week, the sources said. Endeavor shareholders will own 51 per cent of the combined company, while WWE shareholders would get 49 per cent, the sources said.

WWE shares, which have risen more than 30 per cent this year, closed at US$91.26 on Friday, giving the company a market capitalisation of US$6.8 billion. Endeavor has a market value of US$11.3 billion.

Endeavor is led by Hollywood power broker Ari Emanuel, who earlier this month declined to answer questions about a possible deal.

Emanuel has worked to transform Endeavor into a sports and entertainment powerhouse, making more than 20 acquisitions. His investments — in bull riding events, fashion shows and the Miami Open and Madrid Open tennis competitions — sought to diversify the company, which grew from a legacy rooted in representing film and television talent.

Endeavor took a majority holding in the Ultimate Fighting Championship, the world’s largest martial-arts organisation, in 2016, in a US$4.2 billion deal, and acquired the remaining stake in the company along with its IPO five years later.

In regulatory filings, Endeavor argues that it benefits from the rising value of owning a scarce — but popular — asset like sports.

In January, WWE said it would explore strategic options that could include a sale, shortly after Vince McMahon’s return to the company. WWE hired the Raine Group and law firm Kirkland & Ellis as its advisers for the review.

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McMahon had retired in July last year as the company’s CEO and chair, following an investigation into his alleged misconduct. His daughter, Stephanie McMahon, resigned as the company’s co-CEO and chair less than a week after her father returned to the board.

Upon his return, McMahon, who holds a majority of the company’s stock, launched a strategic review, seeking to negotiate a sale before WWE’s media rights, including for programmes such as SmackDown, came up for renegotiation, according to published reports. REUTERS