Benzinga - by AJ Fabino, Benzinga Staff Writer.
Vince McMahon, who has maintained independent majority control of World Wrestling Entertainment, Inc (NYSE: WWE) for more than 40 years, is on the cusp of ushering the company into a new era.
On Tuesday, WWE will merge with UFC parent company Endeavor Group Holdings Inc (NYSE: EDR).
McMahon will retain his executive chair at WWE and step into the executive chair position of the new company while securing a 16% ownership stake in it.
The joint venture, formalized last spring, will see Ari Emanuel's Endeavor assume control of WWE, integrating it with UFC to form TKO Group Holdings.
The new company is to be traded on the New York Stock Exchange (NYSE) under the ticker “TKO" and is valued at $21 billion.
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While Endeavor owns 51% of TKO, WWE's factions, including Raw and SmackDown, will retain 49% control. Leadership will see Emanuel as CEO, Dana White keeping his role as UFC's president, and McMahon becoming TKO's executive chair.
In July, federal agents executed a search warrant on McMahon, paired with a grand jury subpoena. Although no charges were confirmed, preceding this was WWE's internal investigation into McMahon in 2022 over alleged significant payments to women. McMahon later reimbursed the company $17.4 million for the expenses he incurred.
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