By Senad Karaahmetovic
Vince McMahon's World Wrestling Entertainment (NYSE:WWE) is in advanced talks to be sold to Endeavour Group (ASX:EDV), according to several media reports.
The deal could be announced as soon as today and would see WWE merge with EDR’s UFC. Under the terms of the agreement discussed, a new publicly-traded company would be formed with EDR owning 51% while WWE getting 49%.
Endeavour CEO Ari Emanuel is expected to be CEO of the new company while McMahon should take the executive chairman role.
The deal would give WWE an enterprise value of $9.3 billion. Shares closed at $91.26, giving the wrestling promotion company a market value of $6.79B.
Wells Fargo analysts said the reported deal implies a $102 a share valuation for WWE. The analysts believe the EDR deal should be seen “favorably for WWE.”
“We do not expect another bidder for WWE as EDR seems like the most logical partner given its acquisitive nature and similar/complimentary assets, incl. strong knowledge of the Media market for selling content rights and managing talent. The premium is solid, and if McMahon is on board then it's done as WWE is a controlled company (and McMahon would need a hefty premium for a cash deal),” they said in a client note.