As we reported here on eWn earlier today, Endeavor has purchased WWE and will merge the company with the UFC to create a new entity valued at over $21 billion. Under the terms of the deal, Endeavor will own 51% of the company, while WWE shareholders will own 49%. The sale is expected to be completed in the second half of the year. Pwinsider now has some more details regarding the sale.
Although both WWE and the UFC will be owned by the same parent company, they will be managed separately. The Board of Directors will consist of six members appointed by Endeavor and five by WWE.
WWE’s headquarters will remain in Stamford, Connecticut, while UFC will also have its own head office. Endeavor will have its own staff for back-office operations, which could result in layoffs. If Endeavor can manage certain aspects of the business, such as accounting, then the WWE accounting office may be eliminated.
Once the deal is finalized, certain individuals will receive large payouts. Nick Khan will receive a $10 million bonus, Triple H will receive $5 million, and WWE Chief Financial Officer Frank Riddick III will receive $5 million.
Following the completion of the sale, WWE will no longer be traded on the stock exchange. Instead, the combined company will trade under the TKO stock ticker.
An all-hands on deck staff meeting is scheduled for today at 4:00 PM ET, and it has been reported that both parties have the right to cancel the agreement if the deal is not completed by January.
