Could Endeavor be looking to sell WWE and the rest of the TKO Group?
On September 12th, the merger between WWE and UFC was finally completed, uniting the companies under the Endeavor umbrella. This led to the creation of the TKO Group and marked the first time in history WWE had not been run by the McMahon family — a connection that went all the way back to the 1950s.
However, ever since the merger was announced the value of TKO Group stock has continued to fall. This has sparked Endeavor into action with the launch of a review of strategic alternatives.
According to a press release from Endeavor, this won’t include a partial sale or otherwise of the TKO Group. You can find the release below.
BEVERLY HILLS, Calif.–(BUSINESS WIRE)–Endeavor Group Holdings, Inc. (NYSE: EDR) (“Endeavor” or the “Company”), a global sports and entertainment company, today announced the initiation of a formal review to evaluate strategic alternatives for the Company.
As part of this review of strategic alternatives, the Company will not consider the sale or disposition of the Company’s interest in TKO Group Holdings, Inc.
“Given the continued dislocation between Endeavor’s public market value and the intrinsic value of Endeavor’s underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders,” said Ariel Emanuel, CEO of Endeavor.
Endeavor has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any particular outcome. The Company does not intend to comment further regarding the review of strategic alternatives until it determines disclosure is necessary or advisable.”
WWE Changes Approach To Contracts Following Merger
In recent days it’s been reported that WWE has changed its approach to contract renewals since the merger with UFC. Contracts for a number of high-profile stars such as Drew McIntyre, Becky Lynch, and Sheamus are all expiring in 2024.
The report noted that “several” top stars are yet to be approached regarding new deals, with the only negotiations taking place with those who have asked for raises.