The hotly anticipated merger between Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) is official. This union has created TKO Group Holdings, a new $21.4-billion fighting sports and entertainment powerhouse.
TKO Group Holdings went public on September 12, 2023, with an enterprise value of $21.4 billion. The new entity went public on September 12, 2023 and is listed on the New York Stock Exchange (NYSE) under the symbol "TKO".
TKO isn’t just surviving the merger, it’s thriving. Revenue increased from $2.804 billion in 2024 to a projected $3 billion in 2025.
This article delves into the history of ownership for both UFC and WWE, culminating in the formation of TKO Group Holdings.
The Key Players in TKO Group Holdings
The newly-combined company, TKO, is led by Endeavor Chief Executive Ari Emanuel. Beverly Hills-based Endeavor, which also owns Hollywood talent agency WME, holds a 51% controlling stake in the new company.
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WWE shareholders have a 49% interest. Pro wrestling mogul Vince McMahon served as executive chairman, until resigning from the company in January 2024 amid a sex trafficking scandal. UFC’s president Dana White is now its chief executive.
This leadership structure keeps UFC and WWE operating as separate brands under one corporate umbrella. TKO Chief Operating Officer Mark Shapiro (who simultaneously carries the same title for Endeavor) oversees WWE’s top executives including WWE President Nick Khan, as well as UFC’s leadership including Dana White.
Endeavor essentially controls WWE and continues to control UFC. Endeavor, now a privately held company, is wholly owned and controlled by Silver Lake. Silver Lake itself is managed through affiliated entities, with voting control held by Silver Lake West VoteCo.
Here's a summary of the key executives:
- CEO: Ari Emanuel
- President and COO: Mark Shapiro
- WWE President: Nick Khan
- UFC CEO: Dana White
In terms of TKO’s executive leadership, Ari Emanuel serves as the CEO and the Chairman. President and Chief Operating Officer, Mark Shapiro, though is the primary public face of the company. Under Shapiro, WWE’s President is Nick Khan.
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The board of directors of TKO Group Holdings initially consisted of eleven members. Dwayne “The Rock” Johnson was added to the TKO Board in January 2024 and received stock compensation as part of his agreement.
WWE: From Capitol Wrestling to Global Entertainment
WWE was founded in 1953 as the Capitol Wrestling Corporation (CWC), a Northeastern territory of the National Wrestling Alliance (NWA). The CWC was run by Vincent J. McMahon, son of boxing and wrestling promoter Jess McMahon.
Following a booking dispute over CWC wrestler Buddy Rogers and the NWA World Heavyweight Championship, the CWC left the NWA and became the World Wide Wrestling Federation (WWWF) in January 1963, and, by April 25, 1963, Rogers was declared the first WWWF World Heavyweight Champion.
Titan Sports was co-founded by Vincent K. McMahon, Vincent J.'s son, and his wife Linda. Throughout the 1980s WWF began to capitalize on the popularity of rising star Hulk Hogan after he defeated The Iron Sheik at Madison Square Garden on January 23, 1984 to capture the WWF World Heavyweight Championship.
On March 31, 1985 WWF held the first WrestleMania, which would go on to become WWF's flagship event. WWF became a publicly traded company in August 1999, launching an initial public offering on the New York Stock Exchange.
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The company's status as the world's premier professional wrestling organization was cemented by its acquisition of the assets of World Championship Wrestling in 2001 following the Monday Night War. in 2002 after a legal dispute with the World Wildlife Fund. Since 2011, the company has branded itself solely with the initials WWE, though the legal name did not change at the time.
WWE’s total media rights revenue approaches $1 billion annually when combining Netflix, USA Network, ESPN for Premium Live Events, and international deals.
Vince McMahon's Control and Subsequent Departure
WWE's majority owner was its executive chairman, third-generation wrestling promoter Vince McMahon, who retained a 38.6% ownership of the company's outstanding stock and 81.1% of the voting power before the merger.
Vince decided to return to WWE in January 2023, with the justification that he was seeking to merge or sell the company. His voting power allowed him to effectively reinsert himself into WWE’s Board, bringing himself back as a board member as well as allies like former WWE executives George Barrios and Michelle Wilson.
In April 2023, WWE and Endeavor agreed to a merge WWE with Endeavor’s asset, UFC. Upon the closing the transaction, Vince and the rest of the McMahon family’s superior voting power was dissolved.
Vince no longer has the same path to return to the company that he used in early 2023. Without control of WWE/TKO, he can’t unilaterally comeback to the company.
In January 2024, a lawsuit was filed by Janel Grant, a former employee at WWE headquarters between 2019 and 2022 against WWE as well as TKO (by proxy of ownership). One day after the report - on January 26, 2024 - Vince McMahon resigned from TKO.
The McMahon era ended not with a planned succession, but with legal settlements, resignations, and Endeavor taking control of wrestling’s most valuable franchise.
UFC: From No-Holds-Barred to Mainstream Phenomenon
The Ultimate Fighting Championship (UFC), initially under the ownership of the Semaphore Entertainment Group, was founded by American businessman Art Davie and Brazilian martial artist Rorion Gracie with their partners in WOW Promotions. The first UFC event was held in November 12, 1993 at the McNichols Sports Arena in Denver.
The purpose of the early ultimate fighting competitions was to identify the most effective martial art in a contest with minimal rules and no weight classes between competitors of different fighting disciplines. In April 1995, after UFC 5, Davie and Gracie sold their remaining interest in the UFC to the Semaphore Entertainment Group and disbanded WOW Promotions.
Six years later in 2001, Zuffa, a sports promotion company headed by Frank and Lorenzo Fertitta, purchased the UFC from the Semaphore Entertainment Group. Zuffa's ownership led to a growth period for the company and the sport of MMA in general; the UFC's global leadership in the sport led to Zuffa buying the assets of the Pride Fighting Championships in 2007 and the Strikeforce promotion in 2011 (among other MMA promotions).
Dana White became UFC president in 2001 when the company was worth $2 million. When TKO formed in 2023, White’s stake was worth over $500 million. The UFC went from near-bankruptcy to $12.1 billion in 22 years.
In 2016, WME-IMG (later Endeavor Group Holdings) purchased a controlling interest in the MMA company for $4 billion. Endeavor acquired remaining UFC minority stakes in 2021, gaining full control.
Industry analysts project UFC’s next US media rights deal at $400-600 million annually, a significant increase from the current $300 million. The UFC’s ESPN deal expires at the end of 2025, making it one of the most valuable media rights negotiations in combat sports history.
UFC hosts MMA fights with actual athletic competition. WWE produces scripted sports entertainment where outcomes are predetermined.
For UFC Fans: The merger provided financial stability and resources to continue global expansion.
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The Formation of TKO Group Holdings
On June 17, 2022, amid allegations of misconduct, Vince McMahon stepped down as the chairman and CEO of WWE, leaving the company to his daughter, Stephanie McMahon, and Nick Khan. In January 2023, Vince said he planned to return to WWE ahead of media rights negotiations.
Also in January 2023, JPMorgan & Co was hired to handle a possible sale of the company, with rumored suitors including Comcast and Fox Corporation (owners of WWE's broadcast partners USA Network and Fox), The Walt Disney Company (owners of ESPN), Warner Bros.
At the close of the deal, Endeavor held a 51% stake in TKO Group Holdings, with WWE's shareholders having a 49% stake, valuing WWE at $9.3 billion.
This marked the first time that WWE had not been majority-controlled by members of the McMahon family. Endeavor CEO Ari Emanuel became CEO of TKO and Mark Shapiro became president and chief operating officer, with each maintaining their respective roles at Endeavor.
On October 23, 2024, it was announced that TKO Group would acquire several businesses from Endeavor, including sports and event management firm IMG (aside from "businesses associated with the IMG brand in licensing, models, and tennis representation, nor IMG's full events portfolio"), On Location Events (a luxury hospitality agency focused on major sporting events), and Professional Bull Riders (PBR), for $3.25 billion in an all-stock deal expected to close in 2025.
On June 6, 2025, TKO announced the creation of UFC Brazilian Jiu-Jitsu (UFC BJJ), a sister company to the UFC based on submission grappling. On June 23, 2025, Ring Magazine officially announced that TKO's boxing promotion (earlier announced in March 2025 in partnership with Turki Al-Sheikh and Sela) will be known as Zuffa Boxing.
TKO Group Holdings: A Financial Overview
TKO Group Holdings went public on September 12, 2023, with an enterprise value of $21.4 billion.
When Endeavor valued WWE at $9.3 billion in the merger, skeptics questioned the price. WWE’s 2022 revenue was $1.29 billion with $177 million net income. If you value WWE purely on media rights (wrestling traditionally trades at 4-6x annual rights revenue), and WWE generates $1 billion annually in media rights, the company is worth $4-6 billion from media rights alone.
The settlement covers fighters who competed in UFC from 2014 onwards. It doesn’t require UFC to admit wrongdoing but acknowledges that fighters claimed underpayment and anti-competitive practices. The $375 million settlement is why TKO’s 2024 net income was only $6.4 million despite $2.8 billion revenue.
TKO continues the partnership, with CFO Andrew Schleimer confirming three WWE events scheduled in Saudi Arabia for 2026 and one in 2025.
TKO President Mark Shapiro told investors: “Raw viewership is up 13% on Netflix versus USA Network last year. Netflix’s WWE strategy mirrors its approach with the Jake Paul vs Mike Tyson fight (108 million viewers in November 2024).
The Future of Combat Sports
The WWE-UFC merger didn’t just create a $21.4 billion company. It changed how combat sports are valued, distributed, and consumed globally.
TKO’s strategy isn’t making UFC fans watch WWE or vice versa. UFC and WWE continue operating as completely separate entities.
For Investors: TKO stock provides pure-play exposure to combat sports without Endeavor’s broader entertainment businesses.
For the Industry: The merger proved that scripted wrestling and real fighting can coexist under one corporate umbrella without compromising either brand.
In July 2024, TKO Group announced an investment in EverPass Media, an NFL-backed distributor of streaming pay television content to commercial establishments. Additionally, in 2025, TKO launched a boxing promotion backed by HE Turki Alalshikh, Chair of Saudi Arabia’s General Entertainment Authority.