In the sports world, Endeavor’s acquisition of the WWE has been a topic of great interest. The deal was struck in just a few weeks, catching many off guard. Endeavor President Mark Shapiro, in an interview with Puck, revealed that he himself knew the deal was going through on Saturday. Shapiro also disclosed that the initial bid for the purchase of a majority share of WWE was made just three weeks prior.
The all-stock deal is expected to be finalized by the end of the year, pending regulatory approval. Endeavor first made the bid in mid-March, during a meeting with WWE Chairman Vince McMahon and CEO Nick Khan at the Raine Group offices in New York. According to sources involved with the deal, Endeavor’s Mark Shapiro and Ari Emanuel then made a second, more emotional pitch the following week at WWE headquarters in Stamford.
Liberty Media, owners of F1, the Atlanta Braves, and SiriusXM, were also in the running to purchase the company until Endeavor and WWE signed a term sheet on Saturday evening. Despite stiff competition from Liberty Media, Shapiro says the merger puts WWE in a better position to negotiate television rights fees later this year. Shapiro also believes that Endeavor’s relationships and portfolio of assets will be helpful in the negotiation process.
Moreover, the merger between Endeavor and WWE may lead to cost savings through staffing layoffs, which could be a cost-saving opportunity for the newly created company. Shapiro estimates that up to $100 million can be saved by combining WWE and UFC into one company. Shapiro explains, “Across every area, you’re going to find cost synergies; you’re going to integrate and ultimately highlight and appoint the best and brightest teams.”
Overall, the acquisition of WWE by Endeavor is expected to bring significant changes to the wrestling world. The newly created company is poised to negotiate better television rights fees, realize cost savings through synergies, and create a stronger and more competitive organization in the world of sports entertainment.
