Ultimate Fighting Championship owner and WWE combining to create $21.4bn company

Ultimate Fighting Championship owner Endeavor Group Holdings Inc. and WWE are combining to create a $21.4bn (£17.3bn) sports entertainment company.

Under the deal, Endeavor will hold a 51% controlling interest in the new company, which does not yet have a name, while existing WWE (World Wrestling Entertainment) shareholders will hold 49%.

The firms put the enterprise value of UFC at $12.1bn (£9.8bn) and WWE's value at $9.3bn (£7.5bn).

The news comes after Vince McMahon, founder and majority shareholder of WWE, returned to the company in January and said it could be up for sale.

There had been speculation that companies such as Disney, Fox, Comcast, Amazon and Saudi Arabia's Public Investment Fund could be interested.

The new business will be led by Endeavor CEO Ari Emanuel. Mr McMahon will be executive chairman, the position he currently holds at WWE.

Dana White will continue as president of UFC and Nick Khan will serve as president of WWE.

Mr McMahon said in a statement: "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."

The new company plans to trade on the New York Stock Exchange and its board will have 11 members, with six appointed by Endeavor and five appointed by WWE.

It comes after WWE held its popular WrestleMania event over the weekend.

Last year, WWE booked revenue of $1.3bn (£1bn) and received more than 16 billion social video views in the final quarter of last year.

Its female wrestlers comprise five out of the top 15 most followed female athletes in the world, across Facebook, Twitter and Instagram, led by Ronda Rousey, who has 36.1 million followers.

Mr McMahon retired as WWE CEO and chair in July last year following the launch of an investigation into alleged sexual misconduct.

His daughter Stephanie McMahon then took over. But she resigned a week after he returned to the board in January.