As it joins forces with the organization that manages Ultimate Fighting Championship to establish a $21.4 billion sports entertainment company, WWE is saying goodbye to its status as a family-run business.
World Wrestling Entertainment announced a deal with Endeavor on Monday following its biggest event of the year, ushering it into a new period after decades of being run by the McMahon family.
The WWE’s Development
McMahon told CNBC he believes he will reach an agreement for the business, despite doubts among some WWE fans and insiders. WWE is at its next stage of growth, and it’s the perfect time to act ethically.
Upon announcing the partnership, WWE and Endeavor announced that the companies would cross-promote themselves to expand brand awareness and reach a wider audience. 1.2 billion and 700 million UFC and WWE fans, respectively, are dedicated to the sport.
- WWE is saying goodbye to its status as a family-run business.
- In January and February of this year, more than 7.5 billion internet and social media views were made.
- Shares of World Wrestling Entertainment Inc., fell close to 4% on Monday.
Due to the ability crossover of athletes like Brock Lesnar and Ronda Rousey, there are already links between WWE and UFC.
The new business, which is still being assigned a name, will be run by Endeavor CEO Ari Emanuel. McMahon will serve as executive director at the new company, just as he does at WWE. Dana White and Nick Khan will continue to serve as the leaders of the UFC and WWE, respectively.
With a combined fanbase of more than a billion people and an exciting growth chance, McMahon said in a prepared statement that “Together, we will be a $21+ billion live sports and entertainment powerhouse.”
In January and February of this year, more than 7.5 billion internet and social media views were made, a 15% increase from the same period in 2016. Over the span of the two days of WrestleMania 39, there were over 500 million views and 11 million hours of video viewing, a 42% increase from the prior year.
After receiving board approval from Endeavor and WWE, the agreement is anticipated to be completed in the second part of the year. It needs to be approved by regulators still. Shares of World Wrestling Entertainment Inc., headquartered in Stamford, Connecticut, fell close to 4% on Monday despite being up 33% so far this year.