WWE Flirts With $20 Level For First Time in 8 Months Amid UFC Sale
Rumors circulated in late June that the Ultimate Fighting Championship sold itself to an investment group led by the William Morris Endeavor-IMG talent agency.
On Monday, news of the sale became official. The UFC sold itself to a consortium of investors led by the William Morris Endeavor (WME) talent agency for $4 billion. Other members of the group include MSD Capital, KKR and Silver Lake.
Benzinga reached out to industry expert Darren Heitner who said that while the price tag on the UFC acquisition is "hefty," the organization will now be managed "more like a global business." He also noted that the UFC's prior owners were "savvy individuals" that had a "real appreciation and involvement" in the business.
Heitner added that the UFC will now be run with a "heavier focus on the bottom line and profit margins."
Meanwhile, shares of World Wrestling Entertainment, Inc. (NYSE: WWE) were trading higher by around 2 percent following the sale announcement of UFC.
Heitner doesn't believe these events have any correlation and WWE's gains could simply be attributed to Monday's general market strength.
"A short term boost is often the result of this type of news," he said. "It shouldn't be looked as having a long-term effect."
WWE recently traded at $19.97, up 2.3 percent. It last traded at those levels in October 2015.
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