WWE & UFC Merge to Form New TKO Group

Summary

• Endeavor and WWE have merged to create TKO Group Holdings, a premium sports and entertainment company comprising UFC and WWE.
• The merger opens up opportunities for streaming platforms to have access to both WWE and UFC content internationally.
• Vince McMahon will cede control of WWE and serve as the executive chairman of the merged company, which plans to expand its offerings to include films, documentaries, and more.

The worlds of WWE and UFC have now merged as Endeavor Group Holdings and WWE announce that the two sports will come together to create TKO Group Holdings, and thus squashing WWE and the mixed martial arts company UFC into one unstoppable golem. TKO Group Holdings has now launched an official website, describing itself as “a premium sports and entertainment company that comprises UFC, the world’s premier mixed martial arts organization, and WWE, an integrated media organization and the recognized global leader in sports entertainment.”

“The creation of TKO marks an exciting new chapter for UFC and WWE as leaders in global sports and entertainment,” Endeavor CEO Ariel Emanuel, who is also now CEO of TKO, said in a statement. “Given their continued connectivity to the Endeavor network, we are confident in our ability to accelerate their respective growth and unlock long-term sustainable value for shareholders. With UFC and WWE under one roof, we will provide unrivaled experiences for more than a billion passionate fans worldwide.”

The monumental deal opens up all manner of opportunities, including a possible shake-up in which streaming platforms will have access to both WWE and UFC. “We’re in conversations now with multiple players on either renewing with incumbents or moving to another partner,” said Endeavor president and COO Mark Shapiro.

“Internationally, there is a lot of opportunity for that,” he added. “But currently [in the U.S.] we’ll be negotiating UFC and WWE individually, just by [virtue] of the fact that they’re in different renewal cycles.”

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WWE’s Vince McMahon Responds to the Merger

Endeavor

Vince McMahon has been the face of WWE for decades, but following the merger, he will now cede control of the wrestling empire and will now serve as the executive chairman of the newly merged company.

“This is the culmination of a decades-long partnership between Endeavor and WWE across strategic initiatives including talent representation and media rights,” McMahon said in a statement. “Given our collaborative, trusted relationship and Endeavor’s incredible track record of success growing UFC, we believe WWE is optimally positioned for future growth and success as part of TKO. Our focus remains on delivering for our fans across the globe as we take the business to the next level alongside UFC and Endeavor.”

This combined company also plans to extend its offerings beyond WWE and UFC, including “films and documentaries, more fights, short form content, social distribution.”

“Going forward, new negotiations bring new opportunities for us to explore new content from both a linear and streaming perspective,” said Shapiro, adding that “both ESPN and Comcast have shown the willingness to allow us to produce more proprietary programs for other outlets in an attempt to better market the sport.”

TKO will begin trading from today on the New York Stock Exchange, with Shapiro declaring that “It’s going to be highly profitable out of the gates, with very low leverage — we will be less than three times — easily scalable, with healthy free cash flow,” said Shapiro. “Certainly part of the strategy is… bringing more clarity and transparency to the assets.”

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