WWE and UFC have struck a new deal and fans are not happy

Vince McMahon’s World Wrestling Entertainment (WWE) will now merge with Ultimate Fighting Championship (UFC) to create a $21.4 billion sports entertainment company under the Endeavour group, the one which owns the UFC.

This surprising development came just one night after WrestleMania 39, though a potential sale of WWE was on the cards for quite some time.

What is the new deal between WWE and UFC? 

Under the new deal, WWE and UFC will be controlled by the Endeavour group, which owns UFC.

•  “This is going to be UFC 2.0, Ari Emmeanuel said in an interview on CNBC’s Squawk on the Street. 
• Endeavour will have 51% stake in the new company, while WWE will have 49%.
• The business deal put the value of WWE at $9.3 billion (Rs 764 crore) while it put UFC’s value at $12.1 billion (Rs 994 crore).
• However, there won’t be any changes in the hierarchical positions in the company. 
• Ari Emmanuel will be the Chief CEO of both Endeavour and the new company. 
• Endeavour President and COO Mark Shapiro will work in the same role in the company.
• Dana White will remain the President of UFC while Nick Khan will remain President & CEO of the wrestling business. 
• The new board will have 11 people; 6 from Endeavour and 5 from WWE.
• The company will trade under the New York Stock Exchange and ticker symbol TKO.

What is the logic behind the deal?

The newly brokered deal between UFC and WWE has thrown up a plethora of questions because both UFC and WWE deal in wrestling, but they are totally different.

• While WWE is based on built-up characters, scripted matches and running storylines, UFC deals in showcasing brutal mixed martial arts.

Though talents from UFC often switch to WWE (like Brock Lesnar, Ronda Rousey and CM Punk), the nature of the content that both the businesses provide is totally different.

Vince McMahon has not listed any specific reason for the deal and only said that it was the 'right time for the deal'. "The synergies that Endeavour brings are different than anyone. This deal is good for both shareholders," he told CNBC.

Fans are furious

While the deal provides a lucrative sum to WWE as a company, fans are annoyed over the possibilities of influx of UFC talent into WWE.

Some fans on Twitter said that this will see the end of mixed martial arts wrestling. Some fans also spoke their heart out on this merger between WWE and UFC.

Will Vince McMahon be heading creatives again?

Over the creative decisions in the company, Vince McMahon has clearly said that as far as top creative decisions are concerned, he will be part of it. WWE CEO Nick Khan has already said that, "There’s only one man in WWE who takes creative decisions, and it's Vince McMahon."

So, yes we might see some wrestlers from UFC come and be part of WWE and vice versa. But the thing is for WWE performers to compete in UFC would be an uphill task, while wrestlers from UFC too will hardly be interested in being part of WWE.

Guess we'll wait and see how the companies adapt to this change.