WWE To Be Sold To Endeavor

[John McHenry]

The playbook Shapiro referred to will be to focus on growing WWE sponsorship, licensing, hospitality and ticket sales in addition to developing its talent through unscripted shows, movies and endorsements.

Seems like Wrestlemania was the verification they wanted.

 

[Chris]

The deal for Endeavor to purchase WWE came together in just a few weeks.

Endeavor president Mark Shapiro spoke with Puck recently and said he did not know the deal was going through until Saturday. Shapiro says Endeavor put in a bid to purchase a majority share of WWE just three weeks prior.

The all-stock deal is expected to close by the end of the year, pending regulatory approval.

Endeavor's first bid was reportedly made in mid-March at a meeting with Shapiro, Ari Emanuel, Nick Khan, and Vince McMahon at the Raine Group offices in New York. Shapiro and Emanuel then made a second and "more emotional" pitch the following week at WWE headquarters.

From Puck:

The pair outlined their proposal during a meeting with WWE chairman Vince McMahon and C.E.O. Nick Khan at Raine Group offices, in New York, in mid-March, sources involved with the deal told me, and made a more emotional pitch one week later at WWE headquarters in Stamford.

Liberty Media, owners of F1, the Atlanta Braves, and SeriusXM were also in the running to purchase the company up until Endeavor and WWE signed a term sheet on Saturday evening.

The report continues:

Still, they faced stiff competition from at least one rival bidder—John Malone’s Liberty Media, the owner of Formula One—until the very end

“It was nip and tuck all the way," Shapiro said about the process.

Shapiro also said he feels the merger puts WWE in a better position to negotiate television rights fees later this year.

He said:

“There’s no question that when Nick goes in to renew his domestic deals, having us at the table, with our relationships and our portfolio of assets, will be helpful in the process.”

Due to the merger, staffing layoffs are potentially a cost-saving opportunity for the newly created company. Shapiro believes they can save up to $100 million by combining WWE and UFC into one company.

"Anything from H.R. to finance to legal to communications production to distribution and marketing,” Shapiro said. “Across every area, you’re going to find cost synergies; you’re going to integrate and ultimately highlight and appoint the best and brightest teams.”

https://www.f4wonline.com/news/wwe/first-endeavor-bid-for-wwe-made-in-mid-march-liberty-media-was-stiff-competition

 

[Dale]

3 weeks is pretty wild, they really weren't fucking around.

 

[Chris]

Dana White says Endeavor CEO Ari Emanuel helped UFC get to another level and he can do the same for WWE.

Endeavor purchased UFC in 2016 for $4.02 billion. According to a CNBC report earlier this month, the company now has enterprise value of $12 billion.

White, who owned 9% of the company at the time of sale, remained on as UFC president and says he only has "positive, incredible things" to say about working with Endeavor.

White appeared on The Pat McAfee Show on Friday and was asked about the WWE and UFC merger.

White said:

That's one of the great things about Ari [Emanuel] and why he's such a great partner and why he's so good to work with. He came in and he bought the UFC, they asked me to stay and Ari's one of those guys that lets you run your business, he lets you do what you do.

He also revealed that he met with the McMahons and told them what working with Emanuel is like.

White continued:

I actually met with the McMahons the last time I was in New York. They wanted to know what it was like to be in business with him and everything else and, obviously, I couldn't say anything but incredible, positive things about it.

Emanuel will serve as the chief executive of the new company created through the WWE and UFC merger. White doesn't believe the merger will impact the UFC at all but will be very beneficial for WWE.

White said:

How this is going to affect our company, it won't at all, we're going to keep doing what we do. How it affects WWE is I think there is a lot of value that Ari can add on the business side whether it's licensing, sponsorship, and the list goes on and on, he'll help grow those different areas of their business. They're valued at $9 billion, watch and see what they are in five years.
We always knew there was room for growth and what we wanted to do, and the Fertittas were really good about this, just like Bob Meyrowitz who sold it to us, Bob Meyrowitz felt like we were guys that could take it to another level and the same thing happened when we sold to Ari. You want to sell to a guy who can help grow the business and take it to another level and that's exactly what Vince has done too.

https://www.f4wonline.com/news/wwe/dana-white-endeavor-can-take-wwe-to-another-level

 

[The Gipper]

Dana White on The Pat McAfee show is the most surprising line to me, just didn’t know those two were connected. The rest is “yeah of course he would say that.”

 

[Chris]

Dana White on The Pat McAfee show is the most surprising line to me, just didn’t know those two were connected. The rest is “yeah of course he would say that.”

I don't know that it really means they were "connected" although with the merger they for sure are now. Pat does seem to get these higher level sports guys every now and then though so doesn't surprise me

 

[Samoa Looch]

All of this sounds to me like...
"Will this help WWE?" - "They gonna be worth a lot more in only a couple of years!"
"How about the product? Will it be good?" - "WWE's value will skyrocket!"
"...yeah okay, but what about the quality of the product?" - "WWE's gonna be worth SO much money very soon!"

Spoiler

And of course I know it's a business and it is about making money.

 

[Dale]

I can't really follow the whole web of who owns what network etc so is it realistic for both companies to end up on the same network or some point or nah?

 

[Chris]

I can't really follow the whole web of who owns what network etc so is it realistic for both companies to end up on the same network or some point or nah?

Short answer yes, both UFC's ESPN deal and WWE's Peacock deal end within a year of each other I believe. So for PLEs/PPVs, I think it's very possible

TV wise idk bc while UFC does do weeklies, a lot of them are ESPN+ exclusive and not on actual TV, and it's a really good deal for them from what I can tell so I don't think they would even want to change that. I think Raw/Smackdown TV rights will be logically kept separate from any UFC stuff in negotiations, but they can easily try and sell a PPV bundle for thr two companies once both the current deals are up

 

[Deezy]

Just need to know if UFC will have WWE production

 

[Swamps]

Who do you think is gonna win the brawl 4 all this year?

Bart Gunn is coming back to win it! It's his redemption tour.

 

[Dale]

Short answer yes, both UFC's ESPN deal and WWE's Peacock deal end within a year of each other I believe. So for PLEs/PPVs, I think it's very possible

TV wise idk bc while UFC does do weeklies, a lot of them are ESPN+ exclusive and not on actual TV, and it's a really good deal for them from what I can tell so I don't think they would even want to change that. I think Raw/Smackdown TV rights will be logically kept separate from any UFC stuff in negotiations, but they can easily try and sell a PPV bundle for thr two companies once both the current deals are up

Honestly, it's so hard to follow They have that Fight Pass thing too aswell right?

 

[Chris]

Honestly, it's so hard to follow They have that Fight Pass thing too aswell right?

They do but I think that's more for the absolute super fans. All the actual cards even prelims are also on ESPN+ even if they're on fight pass too, no fight pass exclusive prelims for the last few years. It has a lot of documentaries and other MMA shows from small companies, even some like kickboxing and judo tournaments I believe.

Plus a lot of archive shows which might be the big draw to have it, but I'm not 100% sure since I've never subscribed. It could theoretically be combined with the "WWE Network" I guess for archive content while new live events from both companies could be shopped around as PPVs