The owner of Ultimate Fighting Championship, Endeavor Group Holdings, said on Monday that it would acquire World Wrestling Entertainment.
According to Reuters, the deal is worth $9.3 billion.
The deal offered by Endeavor would value each share of WWE at around $106, which is 16% higher than the stock’s closing price on Friday.
Following the agreement, Endeavor shareholders will own a majority stake of 51% in the newly combined company, while WWE shareholders will own a minority stake of 49%.
It was reported that WWE’s stock fell 4.5% in pre-market trading, while Endeavor, which is led by Hollywood executive Ari Emanuel, rose 4%.
WWE in January said “it would explore strategic options that could include a sale.”
This was shortly after longtime CEO Vince McMahon’s return to the company as its executive chairman.
Meanwhile, the company hired Raine Group and law firm Kirkland & Ellis as advisors to assist with the review.
Vince McMahon had retired from his role as CEO and chairman of the company in July of the 2022, following an investigation into allegations of misconduct.
The Co-CEO Stephanie McMahon, who had taken on the responsibilities of CEO after her father’s departure, resigned one week after Vince returned to the board in January.
