Endeavor’s Huge $21.4 Billion WWE and UFC Merger Could Be Set to Revolutionize Sports Betting
Endeavor’s monumental $21.4 billion merger of WWE and UFC is poised to reshape the sports betting industry. Explore the potential game-changing impacts of this unprecedented combination.
The UFC and WWE will collectively contribute $150 million in cash to the combined entity, and Endeavor will own 51% of the company, while current WWE shareholders will own 49%. Image Source: WrestleTALK
Endeavor’s Acquisition of WWE and Its Impact
Talent and media agency, Endeavor, has acquired World Wrestling Entertainment (WWE) in a $9.3 billion deal that will merge the wrestling organization with the Ultimate Fighting Championship (UFC), a company it acquired for $4.2 billion in 2016.
The combined entity will be valued at $21.4 billion. Endeavor CEO Ari Emmanuel will be CEO of the new company, while Vince McMahon, the WWE Chairman, will be the chairman of the board of directors. The deal is expected to close later this year, and the board will include 11 members — six from Endeavor and five from WWE.
The announcement of the merger came as a surprise to many, but it is something that had been speculated upon earlier this year when it was rumored that the WWE was looking to sell to Saudi Arabia.
The WWE posted a record $1.1 billion in revenue in 2021, and while there have been controversies surrounding the business, including hirings and firings and chairman Vince McMahon facing public backlash, it remains profitable. WrestleMania 39 in Los Angeles last weekend had 162,000 attendees over two days and finished as the highest-grossing event in WWE history.
This deal is about the future, with WWE owning some of the most valuable intellectual property in sports, including 50+ years of content, characters, and stories. Combined with their assets, premium live events, and merchandise business, it’s easy to see why Endeavor is so excited.
There is now a clear opportunity to transform the business, just as Endeavor did with the UFC, and derive value by rerunning the UFC playbook.
A New Era for Sports Betting
Endeavor is looking to build the world’s largest sports and entertainment company, and with the acquisition of WWE, it is taking a significant step towards achieving that goal. The combined company will likely become a significant player in the online sports betting market in the USA.
The sports betting industry is set to reach $20 billion in revenue by 2025, according to data from Zion Market Research. With the new entity owning the intellectual property of WWE, it could lead to a new set of sports betting markets, such as the outcome of wrestling matches or fighters’ entrances, to attract a younger audience.
The WWE has already started to embrace sports betting, with its collaboration with DraftKings. However, the merger with the UFC, which already has a deal with DraftKings, will provide a more extensive range of sports betting markets to tap into.
Endeavor’s acquisition of WWE is a significant step towards its goal of building the world’s largest sports and entertainment company. It is also set to impact the online sports betting market in the USA. The deal could result in the creation of new sports betting markets, which could attract a younger audience to the sector.