The merger between UFC and WWE has been finalized, with Endeavor and WWE jointly announcing the establishment of TKO Group Holdings. This partnership brings together the world of professional wrestling and the MMA giant UFC in the hopes of achieving greater strength as a unified entity.
TKO Group Holdings now boasts a global fan base of over 1 billion supporters, spanning 180 countries and hosting more than 350 live events annually. For more information, you can visit their new website at tkogrp.com.
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Starting on Tuesday, September 12th, shares in TKO will be traded on the New York Stock Exchange under the ticker symbol “TKO.” Endeavor holds a controlling interest of 51% in the newly formed company, while existing WWE shareholders collectively hold a 49% interest on a fully diluted basis.
As TKO launches, trading in WWE shares on the NYSE will cease. On Monday, WWE’s stock closed with a 2.7% increase, reaching $100.65 per share. The price of TKO shares is closely tied to WWE’s stock price, which has already accounted for the transition to the new entity.
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Vince McMahon, the former CEO of WWE, will now serve as the executive chairman of TKO Group. Under the terms of the agreement, McMahon, who was WWE’s controlling shareholder, will possess 16.4% of the economic interests in TKO and hold 16.4% of the voting power in the new organization.
McMahon stepped down as WWE’s chief executive in 2022 during an investigation by the company’s board into alleged hush-money payments to women who accused him of sexual misconduct. He returned to the company in January 2023 as executive chairman to lead WWE’s sale efforts.
According to Endeavor, the TKO deal is expected to result in annualized run-rate cost synergies ranging from $50 million to $100 million, including the migration of WWE to Endeavor’s back-office infrastructure. While the specific details of job cuts at UFC and WWE have not been disclosed, it is presumed that cost-saving measures may include layoffs.
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Additionally, TKO will leverage Endeavor’s expertise in various areas such as domestic and international media rights, ticket sales and yield optimization, event operations, global partnerships, licensing, and premium hospitality to drive revenue growth.
In terms of leadership, Dana White assumes the role of CEO of UFC, while Lawrence Epstein remains the senior executive VP and COO of UFC. Nick Khan continues his role as president of WWE and will have a seat on TKO’s board.
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As part of the TKO deal, certain WWE executives will receive “sale bonus” cash payments. This includes Nick Khan ($15 million), Kevin Dunn, executive producer and chief, global television distribution ($7 million), chief content officer Paul “Triple H” Levesque ($5 million), and CFO Frank Riddick ($5 million).
