Cuts Likely Following WWE’s Deal With Endeavor
Following news of Endeavor acquiring WWE this past Monday, it’s excepted that there will be layoffs and cuts to some degree as things progress in the months ahead.
It was announced on Monday, April 3rd, the day after WrestleMania 39, that Endeavor Group had acquired World Wrestling Entertainment. That led to the announcement of a $21 billion deal to form a new company that will combine WWE and UFC (which is already owned by Endeavor) to become one massive sports and entertainment company.
Mark Shapiro, the President of Endeavor, spoke with Puck recently. Shapiro admitted that he didn’t know the deal to purchase WWE would go through until Saturday, April 1st, which was Night One of WrestleMania 39.
In an interview with Puck, Shapiro talked about the acquisition of WWE while the article’s author Dylan Byers wrote about there potentially being WWE cuts/layoffs because of the deal.
“In essence, Endeavor will run the same playbook it did for UFC, which has grown considerably since the acquisition, to $1.3 billion in revenue last year.”
“The first target, as is almost always the case with mergers, will be synergies: layoffs and operational efficiencies.”
That led to Shapiro making that point further talking about trying to find the best teams moving forward.
“Anything from HR to finance to legal to communications production to distribution and marketing. Across every area, you’re going to find cost synergies; you’re going to integrate and ultimately highlight and appoint the best and brightest teams.”
In the press release announcing the deal, Endeavor laid out who would be running what when UFC & WWE combine to become one yet-to-be-named company.
“The new company will be led by Emanuel (Chief Executive Officer), who will also continue in his role as Chief Executive Officer of Endeavor, McMahon (Executive Chairman of the Board) and Mark Shapiro, who will be President and Chief Operating Officer of both Endeavor and the new company. Dana White will continue in his role as President of UFC and Nick Khan will serve as President of WWE. The Board of Directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.”
Existing WWE shareholders will roll all existing equity into the new entity that will be the parent company of UFC and WWE (“NewCo” until it is named at a later date) and intends to list on the New York Stock Exchange under the ticker symbol “TKO”.