The WWE and UFC, two of the biggest names in professional wrestling, have joined forces to form a new business named TKO Group, which will begin trading on the New York Stock Exchange.
It is hoped that by working together, UFC and WWE would be far stronger than each could be on their own. Together, TKO boasts more than a billion worldwide followers, broadcasts to 180 countries, and hosts 350 or more live events each year.
The Higher-Ups
In a prepared statement, Endeavor CEO Ariel Emanuel, who also serves as TKO CEO, stated, "The creation of TKO marks an exciting new chapter for UFC and WWE as leaders in global sports and entertainment."
Alongside Emanuel as CEO, the new company is led by Mark Shapiro as president and COO (who also retains his role as president and COO of Endeavor), Andrew Schleimer as CFO (previously CFO of UFC), and Seth Krauss as chief legal officer (also retaining his role as chief legal officer of Endeavor).
UFC's new CEO is Dana White, while Lawrence Epstein will continue in his role as senior executive vice president and COO. After his time as CEO, Nick Khan will remain with WWE as president and join the board of TKO.
New Stock to Trade
The New York Stock Exchange (NYSE) will start trading TKO shares on Tuesday, September 12, under the ticker code "TKO."
In a report by Variety, UFC owner Endeavor owns 51% of the new firm, and current WWE proprietors hold 49%. WWE stock will no longer be traded on the NYSE after Monday's closing, September 11, when it gained 2.7% to $100.65. The transition to the new issue has been reflected in the price of TKO shares, which are linked to WWE's stock price.
Former WWE CEO Vince McMahon is now executive chairman of TKO Group. McMahon, the former majority shareholder of WWE, will acquire 16.4% of the economic interests in TKO (and 16.4% of the voting power in the new organization) as part of the agreement.
Variety said McMahon resigned as WWE CEO in 2022 after the company's board began looking into reports of his paying hush money to silence accusers of sexual misconduct. With the goal of selling WWE, he returned to the firm in January 2023 in the role of executive chairman.
According to Endeavor, the TKO deal would result in yearly run-rate cost synergies of $50 million to $100 million. These savings will be realized in part by moving WWE to Endeavor's back-office infrastructure. While layoffs are likely to be part of the cost-cutting plan, UFC and WWE have not yet released official statements on the matter.
In 2022, TKO earned $351.8 million after accounting for its pro forma $2.43 billion in revenue (of which $1.14 billion came from UFC and $1.29 billion came from WWE). UFC's debt of $2.73 billion will be removed from Endeavor's books and taken on by TKO.
