(Reuters) -Endeavor Group Holdings Inc, the parent of the popular UFC mixed martial arts franchise, said on Monday it will acquire entertainment firm World Wrestling Entertainment Inc in a deal valued at $9.3 billion.
Endeavor said the deal represents a contribution price of about $106 per share for WWE, which is about 16% higher than the stock’s Friday closing.
Under the agreement, Endeavor shareholders will own 51% of the combined company, while WWE shareholders would get 49%.
Shares of WWE were down 4.5% in trading before the bell, while Endeavor, led by Hollywood power broker Ari Emanuel, was up 4%.
In January, WWE said it would explore strategic options that could include a sale, shortly after longtime CEO Vince McMahon’s return to the company as its executive chairman. It hired Raine Group and law firm Kirkland & Ellis as its advisers for the review.
McMahon had retired in July last year as the company’s CEO and chair, following an investigation into his alleged misconduct. Co-CEO Stephanie McMahon, who single-handedly managed the mantle when her father exited, resigned a week after he returned to the board in January.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)
