The Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) have agreed to merge in a deal that values the combined company at $21.4 billion. The deal is expected to close in the second half of 2023.
Under the terms of the deal, UFC will be acquired by WWE in an all-stock transaction. UFC shareholders will receive 0.525 shares of WWE stock for each UFC share they own. The deal values UFC at $42 per share, a 43% premium to its closing price on Friday.
The merger will create a global sports entertainment powerhouse with a combined audience of over 1 billion people. The combined company will also have a library of over 100,000 hours of content.
WWE Chairman and CEO Vince McMahon said the merger is "a perfect fit" for both companies. "We are excited to welcome the UFC team to the WWE family," McMahon said. "This is a historic moment for both companies and our fans."
UFC President Dana White said the merger is "great news for the UFC." "This is a great opportunity for our athletes, our employees, and our fans," White said. "We are looking forward to working with the WWE team to continue to grow the UFC brand."
The merger is subject to approval by UFC and WWE shareholders, as well as regulatory approvals.
Potential Impact of the Merger
The merger of UFC and WWE is likely to have a significant impact on the sports entertainment industry. The combined company will be the largest player in the industry, with a dominant position in both mixed martial arts (MMA) and professional wrestling.
The merger is also likely to lead to increased consolidation in the sports entertainment industry. Other companies in the industry, such as Bellator MMA and Ring of Honor, may be looking to merge in order to compete with the combined UFC-WWE company.
The merger is also likely to have an impact on the way sports entertainment is consumed. The combined company may look to develop new ways to deliver its content to fans, such as through streaming services or pay-per-view events.
Overall Impact of the Merger
The merger of UFC and WWE is a major development in the sports entertainment industry. The combined company will be a global powerhouse with a dominant position in both MMA and professional wrestling. The merger is also likely to lead to increased consolidation in the industry and new ways to deliver sports entertainment to fans.
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