World Wrestling Entertainment (WWE) and UFC owner Endeavor announced on Monday that they are merging into a new publicly listed company. The deal, which puts a value of $21.4 billion on both companies, will see Endeavor receiving 51% of the controlling interest in the new company while WWE shareholders will get 49% of the controlling interest.
According to the announcement, the newly-formed company will trade on the New York Stock exchange under the ticker symbol $TKO. Ariel Emanuel, CEO of Endeavor, will assume the CEO position, while WWE majority owner Vince McMahon will take on the Executive Chairman of the Board role. Endeavor will appoint six names for the 11-members board of directors while the WWE will select the remaining five.
“This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed,” Emanuel said in a statement.
The merger is expected to be officially completed by the end of this year. The two companies expect to save between $50 million and $100 million in costs after all is said and done.
WWE stock plunged around 6% in the premarket trading following the announcement, while Endeavor’s shares jumped by 7% at one point.