Is WWE owned by Endeavor?

The recent collaboration between Endeavor and WWE has sparked a wave of interest and speculation about the ownership of WWE. Here's a breakdown of the facts regarding this significant development.

The Collaboration Announcement

On April 3, 2023, Endeavor and WWE announced a definitive agreement to form a new, publicly listed company.

This new company will consist of two iconic, complementary, global sports and entertainment brands: UFC and WWE.

Upon close, Endeavor will hold a

51% controlling interest in the new company, and existing WWE shareholders will hold a 49% interest.

Understanding Endeavor and WWE

Endeavor is a global sports and entertainment company that holds a significant interest in various industries, including entertainment agency WME, sports, fashion, events, and media company IMG, and the premier mixed martial arts organization UFC.

WWE is a publicly traded company and an integrated media organization recognized as a leader in global entertainment. It consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience.

The Partnership

This partnership marks a significant move in the entertainment and sports industry, bringing together two major players, UFC and WWE, under the umbrella of a new, publicly listed company.

On a combined 2022 fiscal year-end basis, UFC and WWE achieved revenue of

$2.4 billion and a 10% annual revenue growth rate

since 2019.

Ownership Structure

The new, publicly listed company will be 51% owned by Endeavor and 49% by existing WWE shareholders.

This ownership structure clearly indicates that WWE is not wholly owned by Endeavor but will be part of a new company in which Endeavor holds a controlling interest.

Financial Considerations

The transaction values UFC at an enterprise value of $12.1 billion and WWE at an enterprise value of

$9.3 billion.

Under the terms of the transaction, existing WWE shareholders will roll all existing equity into the new entity, which will be the parent company of UFC and WWE and intends to list on the New York Stock Exchange under the ticker symbol

“TKO”

while Endeavor will hold a controlling interest in the new, publicly listed company that consists of UFC and WWE, WWE is not owned by Endeavor outright. The partnership signifies a significant collaboration between two major sports and entertainment entities, and the ownership structure clearly delineates the respective interests of Endeavor and existing WWE shareholders in the new venture.