adminEndeavor Group Holdings Inc (EDR.N), the parent of the popular UFC mixed martial arts franchise, said on Monday it will acquire entertainment firm World Wrestling Entertainment Inc (WWE.N) in a deal valued at $9.3 billion.
Endeavor said the deal represents a contribution price of about $106 per share for WWE, which is about 16 percent higher than the stock’s Friday closing.
Under the agreement, Endeavor shareholders will own 51 percent of the combined company, while WWE shareholders would get 49 percent.
Shares of WWE were down 4.5 percent in trading before the bell, while Endeavor, led by Hollywood power broker Ari Emanuel, was up 4 percent.
In January, WWE said it would explore strategic options that could include a sale, shortly after longtime CEO Vince McMahon’s return to the company as its executive chairman. It hired Raine Group and law firm Kirkland & Ellis as its advisers for the review.
McMahon had retired in July last year as the company’s CEO and chair, following an investigation into his alleged misconduct. Co-CEO Stephanie McMahon, who single-handedly managed the mantle when her father exited, resigned a week after he returned to the board in January. — Reuters.
Online Reporter