via Imago
Image Credits: IMAGO
via Imago
Image Credits: IMAGO
Zuffa LLC, the company founded by Dana White, Frank Fertitta, and Lorenzo Fertitta bought the UFC from SEC Holdings in 2001 for $2 million. The promotion was struggling for its survival at the time. In 2016, it was sold to WME-IMG group for $4 billion. It was later renamed Endeavor.
Earlier this year, Endeavor and WWE announced they have signed an agreement to bring together two of the biggest fight promotions in the world– WWE and UFC via a merger.
Dana White led UFC – WWE merger expected to be finalized in September 2023
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Endeavor President and COO, Mark Price had said that the merger will be a case of “one plus one equals three” as it is expected to synergize $50 million to $100 million in costs for the two promotions. The company recently announced that the merger is expected to be completed sometime in mid to late September.
Per Endeavor, “transaction to combine UFC and WWE within TKO Group Holdings, Inc. expected to close in mid- to late September 2023”
So the merger for UFC and WWE will be coming sooner rather than later. #UFC #WWE
— Damon Martin (@DamonMartin) August 8, 2023
The new entity will be put under the umbrella of a new company called TKO Group. Vince McMahon will be the executive chairman of the board in the new company, while Dana White will continue in his role as UFC President. TKO Holding is expected to have a valuation of $21 billion after the merger.
Endeavor reveals financials for Q2 of 2023
Endeavor reported a healthy profit of $340.1 million in the second quarter of this year. It is an increase of two-and-a-half percent, equivalent to $8.2 million from the same period last year. This was on the back of the UFC’s performance.
Endeavor reported revenue for their owned sports properties in Q2 2023 — led by UFC — at $340.1 million for the quarter, up $8.2 million, or 2.5% from the same time in 2022.
Endeavor specifically stated all of the gains came from the UFC with increased PPV’s, live events, etc.
— Damon Martin (@DamonMartin) August 8, 2023
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On the other hand, it has also reported that the WGA-AFTRA strike has negatively impacted its business, with reported losses of $25 million per month
Endeavor said the company expects to lose $25 million per month due to the ongoing WGA and SAG-AFTRA strikes and they expect the impact will last for “months not days”
But they are adamant about standing by their clients during the strikes
— Damon Martin (@DamonMartin) August 8, 2023
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Endeavor is also planning to take TKO holding public and will be offering an IPO for it on the New York Stock Exchange. The merger is mainly a way to save on costs for the two companies and WWE will be moved to Endeavor’s back-office infrastructure.
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