It’s fitting that moments after WrestleMania
39 ended, a new era for the WWE began.
The annual event is wrestling and
the WWE’s biggest stage. But talk about what happened in the ring quickly switched
to the news outside of it. WWE and Endeavor — the company behind the UFC — announced a $21B merger. Endeavor will now have a controlling ownership of the two corporations.
Endeavor has long been rumored as a
potential owner since long-time WWE head Vince McMahon returned to explore a
sale after leaving the company following a series of scandals.
The two companies announced the move
and the deal is expected to close in the second half of the year.
“Together, we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity,” McMahon said in a releaseannouncing the deal. “The new company will be well positioned to maximize
the value of our combined media rights, enhance sponsorship monetization,
develop new forms of content and pursue other strategic mergers and
acquisitions to further bolster our strong stable of brands. I, along with the
current WWE management team, look forward to working closely with Ari and the
Endeavor and UFC teams to take the businesses to the next level.”
McMahon will remain
with the new company as executive chairman of the board. But the move is still the
end of a 40-year run leading WWE for McMahon.
He purchased the
company from his father in the 1980s for a reported $1M at a time when wrestling
was largely based on regional promotions. McMahon had a dream of a national operation
and turned the WWE into a powerhouse of sports entertainment.
He oversaw the
creation and development of wrestlers and crossover stars such as Hulk Hogan, Dwayne
“The Rock” Johnson and Dave Bautista.
McMahon led WWE over
WCW in the so-called “Monday Night Rating Wars” as the two companies battled to
be the top wrestling brand. McMahon then bought WCW after winning the ratings
contest. He oversaw the WWE’s popular “Attitude” era, known for suggestive material
and packed houses.
Now, the company he
acquired for $1M has a valuation of $9.3B.
The move to bring in Endeavor
will open new opportunities and questions for WWE. It could allow more cross
between UFC and WWE. But there are questions such as what will happen to the creative
side of wrestling? What will happen with television deals for both sports? How
fast will changes be noticed?
Those will be
answered in due time. Today the only known answer is a new era has started.
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