UFC, the mixed martial arts powerhouse, has officially tied the knot with Vince McMahon’s professional wresting juggernaut WWE, creating a new company called TKO Group that started trading on the New York Stock Exchange today.
The WWE and Endeavor, the company that runs the UFC, are official as TKO, a new $21.4 billion sports entertainment company.
Executives from TKO rang the opening bell at the New York Stock Exchange on Tuesday to signal the start of the new publicly traded company that houses the UFC and WWE brands. Endeavor Group Holdings Inc. has a 51 percent controlling interest in the new company. Existing WWE shareholders hold a 49 percent stake.
The new business will be lead by Endeavor CEO Ari Emanuel. Vince McMahon, executive chairman at WWE, will serve in the same role at the new company and reportedly controls more than 16 percent of the voting stock and overall interest in TKO. UFC president Dana White now has the title of CEO, though his role is expected to largely remain the same as its been. Current WWE CEO Nick Khan will be the president of the pro wrestling brand.
Those on hand in New York included Emanuel, McMahon, White, Paul Levesque (“Triple H”) and former dual UFC champion Daniel Cormier.
The NYSE welcomes TKO Group Holdings Inc. in celebration of its listing! 🔔 $TKO @TKOGrp | @ufc | @WWE | @Endeavor | @danawhite | @TripleH | @BiancaBelairWWE | @dc_mma pic.twitter.com/55SSVlQpdw
— NYSE 🏛 (@NYSE) September 12, 2023
The deal was announced before market open this morning. TKO Group Holding shares are up 0.78% at $101.44 in mid-morning trade, off their highs but bucking a ho-hum market
It’s an epic moment as McMahon, who built the company his father founded into a powehouse and has been the face of WWE for decades, as well as its biggest shareholder, cedes control. Endeavor will own 51% of TKO (technical knockout, in wrestling parlance), with WWE shareholders holding 49%. As reported, Endeavor CEO Ari Emanuel becomes TKO’s chief executive. McMahon is executive chairman.
Endeavor president and COO Mark Shapiro has the same role at TKO.
Dana White remains CEO of UFC, Lawrence Epstein COO. Nick Khan is president of WWE (Raw, SmackDown).
Other execs include Endeavor chief legal officer Seth Krauss, who heads legal at the new company. UFC CFO Andrew Schleimer is chief financial officer.
The board of 11 brings members from Endeavor and WWE plus some new directors like Nancy Tellem, executive chair and chief media officer of Eko (formerly Interlude) and former president of CBS, and Jonathan Kraft, president of the New England Patriots and the Kraft Group investment firm.
Ari Emanuel, Mark Shapiro, Vince McMahon, Nick Khan and Egon Durban of Silver Lake, Endeavor’s largest investor, are also joined on the board by Atlanta Hawks CEO Steven R. Koonin; Peter C.B. Bynoe, senior advisor at global law firm DLA Piper; Sonya E. Medina, CEO of community service nonprofit Reach Resilience; and Carrie Wheeler, chief of online real estate firm Opendoor Technologies.
The new company, with an enterprise value of $21 billion, will have about $2.5 billion in annual revenue and over $1 billion in ebita (earnings before interest, taxes, depreciation and amortization). Endeavor will consolidate the results in its Owned Sports Properties segment – one of four – which also includes Professional Bull Riding and a stake in the EuroLeague basketball.
