UFC and WWE are merging to create a $21.4 billion sports entertainment company.
UFC's Holding Company Endeavor will own 51% controlling interest in the new company, while existing WWE shareholders will hold a 49% stake.
1. The enterprise value of UFC is $12.1 billion and WWE's value is $9.3 billion.
The new company, led by Endeavor CEO Ari Emanuel and Vince McMahon, will be a live sports and entertainment powerhouse with over a billion fans.
The merger comes after McMahon, founder and majority shareholder of WWE, returned to the company in January and said it could be up for sale.
WWE was considered an attractive acquisition target due to its global reach and loyal fanbase.
The new company plans to trade on the New York Stock Exchange under the ticker symbol "TKO."
The board of directors will have 11 members, with six appointed by Endeavor and five by WWE.
The transaction was approved by the boards of Endeavor and WWE and is targeted to close in the second half of the year.
Shares of WWE fell more than 8% before the opening bell, while shares of Endeavor rose nearly 3%.
WWE is a social media powerhouse with over 16 billion social video views, 94 million YouTube subscribers, and more than 20 million followers on TikTok.