WWE, the world’s largest wrestling entertainment company, has been in talks with Endeavor, the parent company of UFC and other sports and media properties, for a potential merger or acquisition. Vince McMahon, the founder, and CEO of WWE, would have to remain as Executive Chairman of the WWE side until his death, resignation, or incapacity.
The deal would create a powerhouse in the sports and entertainment industry, with a combined valuation of over $10 billion.
Why Vince McMahon Will Remain Chairman of WWE Until Death Post-Merger with Endeavor
According to Wrestlenomics, the negotiations hit a snag when Endeavor’s legal advisor presented WWE with a revised term sheet that had a surprising condition: Vince McMahon, the founder, and CEO of WWE, would have to remain as Executive Chairman of the WWE side until his death, resignation, or incapacity.
This would mean that McMahon would retain control over the creative direction and business decisions of WWE, even if Endeavor acquired a majority stake in the company.
According to sources familiar with the matter, Endeavor was willing to accept the 51/49 valuation that WWE had proposed earlier, which would give Endeavor a slight edge in ownership, but only if McMahon stayed on board as Executive Chairman. The reason for this condition was that Endeavor believed that McMahon’s vision and leadership were essential for WWE’s success and popularity and that losing him would risk alienating the loyal fan base and talent of WWE.