In a major development in the world of sports and entertainment, World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC) have agreed to merge to create a new company controlled by Endeavor Group. The deal was announced on Monday morning and is expected to be completed in the second half of 2023.

According to the terms of the agreement, Endeavor will own a 51% stake in the new combat sports and entertainment company, while WWE shareholders will own the remaining 49%. The deal values WWE at $9.3 billion and UFC, which is owned by Endeavor, at $12.1 billion.

Ari Emanuel, the CEO of Endeavor, will be the chief executive of both Endeavor and the new company. Vince McMahon will be the executive chairman, while Mark Shapiro, Endeavor’s President and COO, will hold the same roles at the new company. Dana White will remain the president of UFC, and WWE CEO Nick Khan will stay on as president of the wrestling business.

The board of the new company will consist of 11 people, six appointed by Endeavor and five by WWE. The company will trade on the New York Stock Exchange under the ticker symbol TKO. The name of the merged company will be announced at a later time.

Shares of WWE fell more than 2% and Endeavor declined over 5% on Monday. This merger is a significant move in the entertainment and sports industry, combining two of the biggest names in wrestling and combat sports. With the new company expected to have a market value of around $21 billion, it will be interesting to see how it develops and what new opportunities arise for both WWE and UFC.

McMahon’s father founded WWE in its original incarnation during the middle of the 20th century. McMahon, who bought the company from his father in 1982, is the controlling shareholder. Over the past four decades, WWE has grown into a global phenomenon, spawning breakout stars such as Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.