World Wrestling Entertainment (NYSE:WWE) stock is on the move Monday as investors prepare for the company to combine with UFC parent Endeavor Group (NYSE:EDR).
This merger will result in the creation of a new company that will act as the parent company of both WWE and UFC. The company doesn’t have an official name yet but will trade on the New York Stock Exchange under the TKO ticker symbol.
The executive committee of the board of directors of Endeavor and the Board of Directors of WWE have both given their unanimous support to the merger. This has them expecting the merger to close in the second half of 2023.
When that deal closes, Endeavor will hold a 51% interest in the combined company. The remaining 49% will belong to WWE. This will also see Endeavor CEO Ariel Emanuel serving as the CEO of the new company. WWE Executive Chairman Vincent McMahon will act as the Executive Chairman of the Board for the new company.
Details of the WWE Stock Deal
Investors will note that the deal values UFC with an enterprise value of $12.1 billion. It also has WWE valued at $9.3 billion. To go along with that, the combined share price implied by the deal is $106 each.
WWE stock is down 5.3% and EDR stock is down 5.9% as of Monday morning.
Investors seeking out more of the latest stock market news will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
