Welcome to the new fight club. WWE and UFC parent Endeavor Group on Thursday named the lineup for the board of their new company, TKO Group Holdings. WWE stock slid in a buy zone, EDR stock climbed Friday.
Ultimate Fighter Championship parent Endeavor Group finalized the composition of the companies board, with Vince McMahon seated in the executive chairman slot. Endeavour announced plans to buy a 51% majority stake in WWE in early April, creating TKO Group Holdings, a "live sports and entertainment powerhouse" valued at $21.4 billion. The new entity will serve as the parent of UFC and WWE and intends to list on the New York Stock Exchange under the ticker "TKO" once the deal is finalized in mid- to late-September.
New Fight Club
Endeavor selected six of the 10 named board members. The list includes:
- Vince McMahon — executive chairman of WWE
- Ariel Emanuel — CEO of Endeavor
- Egon Durban — Co-CEO of Silver Lake and Endeavor board member
- Nick Khan — CEO of WWE.
- Mark Shapiro — president and COO of Endeavor
- Steven Koonin — CEO of the Atlanta Hawks
- Johnathan Kraft — president of the Kraft Group, son of New England Patriots owner Robert Kraft
- Sonya Medina — president and CEO of Reach Resilience, co-founder of Greenlight Growth Capital
- Nancy Tellem — executive chair and chief media officer of Eko
- Carrie Wheeler — CEO of Opendoor Technologies
WWE will independently select the 11th board member.
Emanuel will lead the new company while McMahon will serve as executive chairman of the board. Khan and Dana White will continue their roles as CEO of WWE and UFC, respectively.
Notably absent from the list is Paul "Triple H" Levesque, former WWE superstar, executive vice president and current Chief Content Officer. Stephanie McMahon, former executive and daughter of Vince, is also absent after resigning from WWE in January following her weeklong spell as interim co-CEO during Vince's sexual misconduct investigation.
McMahon Returns After Investigation
Mr. McMahon retired as CEO and chief executive last July, after stepping away the month prior, as the company investigated nearly $20 million in previously unrecorded expenses dating back to 2007. Almost $15 million was paid to settle sexual misconduct allegations against McMahon over a 16-year period. McMahon also paid $5 million to a defunct foundation owned by Donald Trump between 2007 and 2009.
WWE disbanded the special committee investigating misconduct last November, saying it would implement recommendations from the committee. At the time, the company noted McMahon could "effectively exercise control over our affairs" due to his controlling interest.
McMahon returned as executive chairman in early January and agreed to reimburse the company for all costs from the investigation. He paid $17.4 million to WWE in March.
Federal law enforcement officers executed a search warrant and subpoenaed McMahon on July 17 in relation to the sexual misconduct allegations, WWE disclosed in Aug. 2. earnings results. Officials have not yet brought forward any charges in the investigation.
WWE Stock
WWE stock slumped 2% Friday after opening slightly higher. The stock surged 4.3% during Thursday's session. Shares have rallied 63% year to date, and are sitting on a 34-month rally of 216%.
Shares are trading in the middle of a buy zone for a flat base, after retaking the 110.23 buy point.
EDR stock added 1.3% Friday. Shares are in a cup base formed within a two-year consolidation. Endeavor stock climbed 11.9% so far this year and is holding above its moving averages.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
