Vince McMahon Says ‘I Made Mistakes’ But ‘Was Owned By Everyone’ As WWE And UFC Complete Merger

Vince McMahon called Monday “a great day” when his legendary company announced plans to sell a majority stake in Endeavor in a merger with mixed martial arts company UFC. “Things have to evolve. A family business needs to develop for the right reasons. And it’s the right business decision, and it’s the right family decision,” McMahon said in an interview on CNBC today.

McMahon’s father founded WWE in 1953, and the colorful Vince McMahon has been the face of the company for decades, helping it grow into an international powerhouse. But the majority owner of WWE resigned as CEO in 2022 and then from the board amid a scandal over payments to cover up sexual encounters. Last year he returned as a director to explore strategic alternatives, namely a sale. WWE had to restate some of its earnings to include the payments. It launched and subsequently closed an internal investigation. McMahon agreed last week to pay the company more than $17 million to help cover the investigation’s costs.

When asked what he thinks the past year has meant for his legacy, he said: “I’m not sure about legacy. I won’t write it, so I don’t know. …Let me just say that throughout my 50 year career I have made mistakes, personally and professionally. I owned them all and then moved on.

The all-stock deal, confirmed early Monday, will see Endeavor’s UFC and WWE merge to create a new standalone company, which has yet to be named and is valued at around $21 billion. Endeavor shareholders will own 51% and WWE shareholders will own 49%. A board of 11 members is divided by 6 directors on 5, Endeavor-WWE.

The deal values ​​WWE at around $9.3 billion, well above their market cap (up from $6.6 billion today). Endeavor CEO Ari Emanuel becomes CEO and McMahon CEO. WWE CEO Nick Khan will become president of the combined company. UFC Dana White remains UFC president.

Emanuel presses the price tag, insisting it’s fair. “I’ll tell you why. We paid a bit for a control premium. And with our cost savings and their new offers coming now. And cost savings that we think we can put out of business, and [the] To grow the business, with all our leverage, whether it’s international sales, domestic sales, sponsorships, gaming … all the things we do,” he told CNBC. The parties expect annual cost synergies of between US$50 million and US$100 million.

Emanuel said he was criticized for this because IMG ($2.3 billion in 2013) and for UFC (majority stake for $4 billion in 2016, 100% control in 2021 in connection with the IPO by Endeavor) were overpaid. Both were good deals, he said.

And he reiterated that Endeavor shares are undervalued because investors struggle to value the various assets under one roof.

The transaction is expected to close in the second half of 2023, subject to regulatory approval.

In an interview with Deadline, Khan described the sales process as “robust”, with interest from multiple parties. It was “no coincidence” that WWE hosted its annual spring event, WrestleMania, at LA’s SoFi Stadium, a venue that allowed an extensive list of stakeholders to explore the power of WWE over the weekend as the final bow to the transaction took place to experience personally.

Meanwhile, current WWE rights holders Fox Corp. and NBCUniversal are in an exclusive negotiating window that began April 1. The pro wrestling circuit provided Fox and USA Network Raw And knock off has been broadcast year-round since current agreements came into effect in 2019. “Both partners will watch and we’ll hear what they have to say,” Khan said.

NBCU’s Peacock has a separate deal for the streaming rights to WWE events, including last weekend’s WrestleMania, which set records for viewership as well as merchandise sales and sponsorships. Peacock acquired the former standalone WWE Network in a $1 billion deal in 2021 and offered its programming to premium subscribers. Khan declined to offer specific Peacock viewership statistics, but said a “significant number” of premium subscriptions were sold because of WWE content.

Endeavor and WWE shares fell today but trended higher in after-market trading.