On September 12, 2023, Vince McMahon walked into the New York Stock Exchange alongside Ari Emanuel and Dana White. The three men rang the opening bell together, creating TKO Group Holdings, a $21.4 billion combat sports empire that merged the UFC with WWE for the first time in history.
McMahon had owned WWE since buying it from his father in 1982. For 41 years, the McMahon family controlled wrestling’s most valuable brand. That morning, McMahon ceded majority control to Endeavor, accepting a 16.4% stake in TKO while Endeavor took 51%.
The Deal That Changed Wrestling Forever:
- Total Valuation: $21.4 billion
- UFC Valuation: $12.1 billion (51% owned by Endeavor since 2021)
- WWE Valuation: $9.3 billion (first time not McMahon-controlled)
- Endeavor Stake: 51% controlling interest
- WWE Shareholders: 49% stake
- Vince McMahon Ownership: 16.4% (down from 38.6% ownership and 81.1% voting power)
Two years later, TKO generates $3 billion in annual revenue, operates the world’s two most valuable combat sports brands, signed a $5 billion Netflix deal for WWE Raw, and launched a boxing promotion backed by Saudi Arabia. The company projects $1.35-1.39 billion in adjusted EBITDA for 2025, nearly matching its entire 2023 revenue.
But this wasn’t just a business merger. It was the end of the McMahon family dynasty, the culmination of UFC’s 30-year journey from banned bloodsport to mainstream entertainment, and Ari Emanuel’s bet that combining scripted wrestling with real fighting would create the most valuable live sports property outside the NFL and NBA.
Was he right? The numbers tell the story.
Why Did Vince McMahon Sell WWE After 41 Years?
Vince McMahon didn’t plan to sell WWE. He planned to retire, hand control to his daughter Stephanie, and remain the company’s largest shareholder. Then came the investigations.
The Timeline That Forced McMahon’s Exit
- June 2022: Wall Street Journal reports Vince McMahon paid $12 million to four women over 16 years to cover up allegations of sexual misconduct and infidelity
- June 17, 2022: McMahon steps down as WWE CEO and Chairman. Stephanie McMahon becomes co-CEO alongside Nick Khan
- July 2022: WWE board launches internal investigation into McMahon’s payments and potential misuse of company funds
- January 2023: Vince McMahon forces his return as Executive Chairman, despite opposition from Stephanie (who resigns in protest)
- January 23, 2023: McMahon announces WWE is exploring strategic alternatives including a potential sale
- April 3, 2023: WWE and Endeavor announce merger agreement valued at $21.4 billion
- September 12, 2023: Merger closes, creating TKO Group Holdings
McMahon claimed he returned to WWE to lead media rights negotiations and explore sale options because “family businesses have to evolve for all the right reasons.” The reality? WWE’s board wanted him gone, sponsors were concerned about reputational damage, and the scandal gave McMahon no leverage to remain in control.
McMahon’s Statement on the Merger
“Together we will be a $21+ billion live sports and entertainment powerhouse with a collective fanbase of more than a billion people and an exciting growth opportunity. Given the incredible work that Ari and Endeavor have done to grow the UFC brand, nearly doubling its revenue over the past seven years, I believe that this is without a doubt the best outcome for our shareholders.”
But McMahon’s involvement didn’t end cleanly. In January 2024, a former WWE employee filed a lawsuit alleging sexual assault and sex trafficking. McMahon resigned from TKO entirely on January 26, 2024. Federal investigators opened a probe that concluded in 2025 with no criminal charges, though McMahon settled with the SEC for undisclosed payments to two women without admitting guilt.
The McMahon era ended not with a planned succession, but with legal settlements, resignations, and Endeavor taking control of wrestling’s most valuable franchise.
How Much Is UFC Worth? From $2 Million to $12.1 Billion
The Ultimate Fighting Championship launched in 1993 as a no-holds-barred spectacle where fighters from different martial arts backgrounds fought with minimal rules. The first UFC event featured tooth-chipping violence, groin strikes, and competitors who barely understood each other’s fighting styles.
Politicians called it “human cockfighting.” John McCain led a campaign to ban the sport. Major cable providers refused to carry UFC pay-per-views. The company nearly went bankrupt.
Then came the Fertitta brothers and Dana White.
UFC’s Financial Evolution
- 2001: Zuffa LLC (owned by Lorenzo and Frank Fertitta, with Dana White as president) buys UFC from Semaphore Entertainment Group for approximately $2 million
- 2007: UFC buys Pride Fighting Championships assets after the Japanese MMA league collapses
- 2011: UFC acquires Strikeforce for undisclosed amount, consolidating MMA competition
- 2016: William Morris Endeavor (WME-IMG) leads investment group to buy Zuffa and UFC for $4.025 billion. Partners include Silver Lake Partners, Kohlberg Kravis Roberts, MSD Capital
- 2017: WME-IMG rebrands as Endeavor Group Holdings
- 2019: ESPN signs exclusive UFC deal worth $1.5 billion over 5 years (through 2025), with ESPN+ becoming home for UFC PPV events
- 2021: Endeavor buys out all other Zuffa owners at $1.7 billion valuation, gaining 100% UFC ownership
- 2023: UFC valued at $12.1 billion as part of TKO merger
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. He’s remained UFC CEO throughout, now overseeing the brand within TKO’s structure.
The UFC went from near-bankruptcy to $12.1 billion in 22 years. That’s a 604,900% increase in value, making it one of the most successful sports league turnarounds in history.
What Is TKO Group Holdings Worth Today?
TKO Group Holdings went public on September 12, 2023 with an enterprise value of $21.4 billion. The stock opened at $102 per share under ticker symbol “TKO” on the New York Stock Exchange.
TKO Financial Performance (2024-2025)
2024 Full Year Results:
- Total Revenue: $2.804 billion
- UFC Revenue: $1.406 billion (50.1% of total)
- WWE Revenue: $1.398 billion (49.9% of total)
- Net Income: $6.4 million (impacted by $375M UFC lawsuit settlement)
- Adjusted EBITDA: $1.251 billion
- Interest Expense: $249 million (debt inherited from UFC)
2025 Projections (Full Year):
- Projected Revenue: $2.93-3.0 billion
- Projected Adjusted EBITDA: $1.35-1.39 billion
- Q1 2025 Revenue: $1.269 billion (4% increase)
- Q1 2025 Net Income: $165.5 million ($400M swing from Q1 2024 loss)
TKO Stock Performance:
- IPO Price (September 12, 2023): $102/share
- Market Cap at Launch: $21.4 billion
- Current Enterprise Value: $23-25 billion (fluctuates with market)
- Major Shareholders: Endeavor (51%), former WWE shareholders (49%), Vince McMahon personally owns 16.4%
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. The company declared its first quarterly dividend in early 2025 ($75 million paid March 31) and authorized a $2 billion share buyback program expected to complete within 3-4 years.
But the real growth driver came in January 2025 when WWE Raw moved to Netflix.
The $5 Billion Netflix Deal That Changed Wrestling Economics
On January 6, 2025, WWE Raw aired its first episode on Netflix after 32 years on cable television. The move represented the most significant media rights shift in wrestling history and potentially the future of all live sports broadcasting.
WWE’s Netflix Deal Details
- Contract Value: $500 million per year
- Contract Length: 10 years
- Total Deal Value: $5 billion
- Previous USA Network Deal: $265 million annually
- Revenue Increase: 89% more per year
- Global Distribution: Netflix available in 190+ countries
- Premiere Episode (Jan 6, 2025): 4.9 million viewers in first 24 hours
Netflix didn’t just pay $5 billion for wrestling content. They paid for guaranteed live programming that keeps subscribers engaged year-round. WWE produces content 52 weeks per year. Raw airs every Monday. SmackDown airs Fridays on USA Network (separate deal). Premium Live Events (formerly PPVs) happen monthly.
Why Netflix Paid $500 Million Annually
- Consistent Content: WWE delivers 52 Raw episodes annually, guaranteed
- Global Fan Base: 1.2 billion social media followers across WWE platforms
- Multi-Generational Appeal: Families watch together, kids to grandparents
- Appointment Viewing: Live wrestling can’t be time-shifted without spoilers
- International Growth: WWE expands Netflix’s reach in India, Middle East, Europe
TKO President Mark Shapiro told investors: “Raw viewership is up 13% on Netflix versus USA Network last year. Netflix is seeing exactly what they paid for: massive, engaged, family-friendly audience tuning in live every Monday.”
Netflix’s WWE strategy mirrors its approach with the Jake Paul vs Mike Tyson fight (108 million viewers in November 2024). The platform discovered that live sports and entertainment drive subscriber acquisition and retention better than scripted series. WWE provides that live content 52 times per year.
WWE’s Other Media Rights
- SmackDown (USA Network): New deal starting 2024, approximately $287 million annually
- Premium Live Events: Negotiations ongoing for post-2026 rights (current Peacock deal expires March 2026)
- NXT (The CW): Viewership up significantly, CW “seeing great uplift”
- International Rights: Various deals across 180 countries
WWE’s total media rights revenue approaches $1 billion annually when combining Netflix, USA Network, international deals, and Premium Live Events. That’s nearly double what WWE generated from all sources before the TKO merger.
UFC’s $1.4 Billion Revenue: How MMA Became Mainstream
While WWE transitioned to Netflix, UFC continued its ESPN partnership and delivered record financial performance in 2024 despite holding one fewer numbered event than 2023.
UFC 2024 Financial Breakdown
- Total Revenue: $1.406 billion
- Q4 2024 Revenue: $343.9 million (22% increase year-over-year)
- Media Rights Revenue: Major component from ESPN deal through 2025
- Live Event Revenue: $76.3 million in Q1 2025 alone
- Sponsorship Revenue: Up significantly, including new Meta partnership
- Pay-Per-View Events: 13 numbered UFC events in 2024
UFC’s Current Media Rights
- ESPN Deal (Expires 2025): $1.5 billion over 5 years ($300M annually)
- ESPN+ Exclusive: All UFC PPV events streamed through ESPN+ in US
- International Rights: Deals in 170+ countries
- UFC Fight Pass: Direct-to-consumer streaming platform
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. TKO has entered the exclusive negotiating window with ESPN but can take UFC to the open market if ESPN’s offer isn’t competitive.
What Could UFC’s Next Media Deal Be Worth?
Industry analysts project UFC’s next US media rights deal at $400-600 million annually, a significant increase from the current $300 million. Potential bidders include:
- ESPN (Current Partner): Wants to retain UFC as flagship content
- Netflix: Already paying $500M for WWE Raw, could add UFC
- Amazon Prime Video: Proven interest in combat sports (owns Thursday Night Football, Boxing)
- Apple TV+: Seeking premium live sports content
- Warner Bros. Discovery (TNT Sports): Lost NBA rights, needs live sports replacement
TKO President Mark Shapiro told analysts in May 2025: “We’re in discussions at this time with various third parties regarding UFC’s rights. I would term the conversations as thoughtful and strategic. ESPN is still heavily included in the mix. Would be thrilled to continue with them, but as I said, just various conversations, various parties.”
The UFC’s next media rights deal could push TKO’s annual revenue above $3.5 billion by 2026-2027.
Dana White and Nick Khan: The Executives Behind TKO’s Success
When TKO formed, three executives took control:
Ari Emanuel: TKO CEO and Endeavor CEO
- Hollywood super-agent who founded Endeavor (formerly William Morris Endeavor)
- Led $4 billion UFC acquisition in 2016
- Orchestrated WWE merger in 2023
- Inspiration for Ari Gold character in HBO’s “Entourage”
Dana White: UFC CEO (promoted from President)
- UFC President since 2001 when company was worth $2 million
- Turned UFC from near-bankrupt promotion to $12.1 billion brand
- Known for blunt speaking style and fierce defense of fighters and company
- Estimated net worth: $500 million+
Nick Khan: WWE President
- Former CAA agent who joined WWE in 2020
- Negotiated NBC Peacock deal, Fox deal, and Netflix deal
- Co-CEO alongside Stephanie McMahon before her resignation
- Widely credited with tripling WWE’s media rights revenue in 4 years
These three executives oversee TKO’s day-to-day operations while Endeavor controls 51% voting power. Paul “Triple H” Levesque remains WWE’s Chief Content Officer, overseeing creative direction for Raw, SmackDown, and Premium Live Events.
TKO’s Corporate Structure
- Ari Emanuel: CEO of both TKO and Endeavor
- Mark Shapiro: President and COO
- Dana White: UFC CEO
- Nick Khan: WWE President
- Paul Levesque (Triple H): WWE Chief Content Officer
- Andrew Schleimer: TKO CFO
This leadership structure keeps UFC and WWE operating as separate brands under one corporate umbrella. Fans won’t see UFC fighters wrestling on WWE or vice versa. The synergies come through shared resources:
- Joint Marketing Campaigns: Cross-promotion to expand fan bases
- Shared Infrastructure: Corporate services, legal, finance
- Combined Media Negotiations: Bundling rights for better deals
- International Expansion: Using WWE’s global reach to grow UFC internationally
- Talent Representation: Endeavor’s WME agency represents UFC fighters and WWE talent
What Fans Actually Get: Do UFC and WWE Mix?
The immediate concern when TKO formed: Would UFC fighters start wrestling, or would WWE superstars step into the Octagon?
The answer: No.
UFC and WWE continue operating as completely separate entities. UFC hosts MMA fights with actual athletic competition. WWE produces scripted sports entertainment where outcomes are predetermined. The brands don’t blend.
What Has Changed:
- Cross-Promotion Events: In April 2025, TKO announced a “takeover” of Kansas City, Missouri, with UFC, WWE, and Professional Bull Riders events happening over one weekend. This marks the first time all TKO properties appeared in one city simultaneously.
- Talent Appearances: UFC fighters occasionally appear at WWE events (Conor McGregor confronted Machine Gun Kelly at MTV VMAs, Ronda Rousey wrestled in WWE). WWE stars occasionally attend UFC fights. But these are promotional appearances, not athletic crossovers.
- Potential Fan Crossover: TKO executive Lawrence Epstein told ESPN: “Where we want to get is where every UFC fan is a WWE fan and every WWE fan is a UFC fan.”
The data suggests it’s working. TKO reports:
- Combined reach: 1+ billion fans globally
- UFC social media: 700 million followers
- WWE social media: 1.2 billion followers
- 180+ countries with distribution
- 350+ live events annually
- 2+ million fans attending events each year
Demographic Differences
UFC Audience:
- Skews male (70%+ male viewers)
- Age 18-49 primary demographic
- International, diverse fan base
- Interested in real athletic competition
WWE Audience:
- More balanced gender split (60% male, 40% female)
- Multi-generational (kids to grandparents)
- Family-friendly content (TV-PG rating)
- Interested in storylines, characters, entertainment
TKO’s strategy isn’t making UFC fans watch WWE or vice versa. It’s maximizing the value of each brand independently while using corporate synergies to reduce costs and improve operations.
The Controversies: UFC Lawsuit, McMahon Allegations, Saudi Arabia
TKO’s formation didn’t erase the controversies plaguing both brands. Some intensified.
UFC Antitrust Lawsuit Settlement
In September 2024, TKO settled the “Le vs Zuffa” antitrust lawsuit for $375 million. The case, filed in 2014, alleged UFC used anti-competitive tactics to suppress fighter pay and maintain a monopoly over MMA.
- Settlement Amount: $375 million total
- Payment Structure: Three installments of $125 million each
- First Payment: October 2024
- Second Payment: February 2025
- Third Payment: Q2 2025 (completed)
- Court Approval: Judge Richard Boulware granted final approval February 6, 2025
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. Without the lawsuit expense, TKO would have reported approximately $380 million net income.
Vince McMahon Sexual Misconduct Allegations
McMahon’s exit from TKO in January 2024 followed new sexual assault and sex trafficking allegations filed by former WWE employee Janel Grant. Federal investigators reviewed the claims throughout 2024-2025.
- Outcome: No criminal charges filed (investigation closed 2025)
- SEC Settlement: McMahon agreed to pay fines and reimburse WWE for payments made to women, without admitting guilt
- McMahon’s Status: No longer involved with WWE or TKO in any capacity
- WWE’s Response: Company cooperated fully with investigations, implemented new corporate governance policies
Saudi Arabia Partnership
WWE has hosted Premium Live Events in Saudi Arabia since 2018 under a 10-year, $450 million deal. Critics condemn the partnership given Saudi Arabia’s human rights record.
TKO’s response: The company continues the partnership, with CFO Andrew Schleimer confirming three WWE events scheduled in Saudi Arabia for 2026 and one in 2025.
Additionally, in 2025, TKO launched a boxing promotion backed by HE Turki Alalshikh, Chair of Saudi Arabia’s General Entertainment Authority. Dana White and Nick Khan co-lead the venture, which aims to revive boxing as a mainstream sport.
TKO’s Future: What Happens Next?
TKO’s strategic priorities through 2027 include securing UFC’s next media rights deal, integrating newly acquired properties (IMG, On Location, Professional Bull Riders), expanding internationally, and launching the Saudi-backed boxing promotion.
Near-Term Growth Drivers
UFC Media Rights (2025 Negotiation): Current ESPN deal expires December 2025. TKO enters exclusive negotiating window but can take UFC to open market if ESPN’s offer isn’t competitive. Projected value: $400-600 million annually (up from $300M currently).
WWE Premium Live Events Rights (2026 Negotiation): Peacock’s exclusive US deal for WWE PLEs expires March 2026. ESPN announced August 2025 deal worth reportedly $1.6 billion over 5 years ($320M annually), securing WrestleMania, Royal Rumble, and other major events.
IMG/On Location/PBR Integration: TKO acquired these Endeavor assets for $3.25 billion (all-stock deal) in February 2025. Expected to close Q1 2025, these additions bring:
- IMG: Sports marketing, talent representation, event management
- On Location: Premium hospitality and ticketing
- Professional Bull Riders: Additional live sports property
Boxing Promotion Launch: TKO’s new Saudi-backed boxing venture aims to capitalize on Jake Paul vs Mike Tyson success (108 million Netflix viewers). Mark Shapiro confirmed: “There’s an audience for boxing, and there’s a dearth of boxing on a national platform.”
International Expansion: WWE and UFC generate 40-50% of revenue internationally. Growth markets include India (1.4 billion population), Middle East (rising entertainment spend), and Latin America (growing MMA interest).
Financial Projections
2025 Targets:
- Revenue: $2.93-3.0 billion
- Adjusted EBITDA: $1.35-1.39 billion
- Dividend Payments: Quarterly distributions continuing
- Share Buyback: $2 billion program over 3-4 years
2027 Potential (If UFC/WWE Rights Increase):
- Revenue: $3.5-4 billion
- Adjusted EBITDA: $1.6-1.8 billion
- Net Income: $400-600 million (no lawsuit settlements)
Did UFC Overpay for WWE? Was $9.3 Billion Too Much?
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. That’s a 7.2x revenue multiple and 52.7x earnings multiple, both considered high for a media company.
Two years later, the valuation looks prescient.
WWE’s Value Drivers Post-Merger
Media Rights Explosion:
- Pre-merger: $465 million annually (USA, Fox, Peacock combined)
- Post-merger: $1+ billion annually (Netflix, USA, ESPN for PLEs)
- Increase: 115% revenue growth in media rights alone
Record WrestleMania Performance:
- WrestleMania 40 (April 2024): Highest-grossing WrestleMania ever
- WrestleMania 41 (April 2025): Broke WM40 records in gate revenue, sponsorships, social engagement
- Economic Impact: Each WrestleMania generates $200-300 million for host cities
Brand Value:
- 1.2 billion social media followers
- Available in 180+ countries
- 52 weeks of content annually
- Family-friendly rating attracts advertisers
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. Add live events ($400M annually), merchandise and licensing ($200M), and other revenue streams, and WWE’s $9.3 billion valuation seems fair, possibly conservative.
UFC’s $12.1 Billion Valuation
UFC’s valuation looks even more justified:
- Annual revenue: $1.4 billion (2024)
- Media rights renewal: Projected to increase 33-100%
- International growth: Massive untapped markets
- PPV model: Generates consistent revenue regardless of economic conditions
- Brand strength: Dominates MMA globally with no serious competition
Endeavor bought 100% of UFC between 2016-2021 for approximately $5.7 billion (combining all transactions). UFC is now valued at $12.1 billion, more than doubling in value in 7 years.
The verdict: TKO paid fair prices for both UFC and WWE. The $21.4 billion valuation has held up through 2024-2025 as both brands delivered record revenue and secured massive media rights increases.
Why the WWE-UFC Merger Changed Combat Sports Forever
Before September 12, 2023, UFC and WWE operated as competitors for fan attention, media rights, and live event dates. Combining them created the world’s second-most valuable combat sports organization (behind only the NFL and NBA as sports properties).
What TKO Accomplished in 18 Months:
- Revenue Growth: $2.43 billion (2022 pro forma) to $2.804 billion (2024) to projected $3 billion (2025)
- Profit Improvement: $351.8 million net income (2022) to projected $400-600 million (2025, excluding lawsuit)
- Media Rights Deals: Secured $5 billion Netflix deal, negotiating UFC and WWE PLE rights worth billions more
- Operational Synergies: Reduced costs through shared infrastructure, combined services
- Capital Returns: Initiated quarterly dividends, authorized $2 billion buyback
- Strategic Acquisitions: Added IMG, On Location, PBR for $3.25 billion
For UFC Fans: The merger provided financial stability and resources to continue global expansion. Dana White remains CEO, the product hasn’t changed, and ESPN partnership continues through 2025 with massive rights increase coming.
For WWE Fans: The Netflix deal brought WWE to 190+ countries with higher production values. WrestleMania and other PLEs continue growing. Talent are paid more as company revenue increases.
For Investors: TKO stock provides pure-play exposure to combat sports without Endeavor’s broader entertainment businesses (talent agency, fashion events, etc.). The company pays dividends, buys back shares, and projects strong growth through 2027.
For the Industry: The merger proved that scripted wrestling and real fighting can coexist under one corporate umbrella without compromising either brand. It demonstrated that live combat sports command premium media rights despite cord-cutting and streaming fragmentation.
