The Endeavor Group Holdings Inc. (EDR) logo hangs from the New York Stock Exchange on the morning of its public listing at the NYSE in New York City
The Endeavor Group Holdings Inc. (EDR) logo hangs from the New York Stock Exchange on the morning of its public listing at the NYSE in New York City, U.S., April 29, 2021. Reuters

Endeavor Group Holdings Inc, the parent of the popular UFC mixed martial arts franchise, is in talks to acquire World Wrestling Entertainment Inc (WWE) in an all-stock deal, according to people familiar with the matter.

The sources requested anonymity because the matter is confidential. Endeavor and WWE did not immediately respond to requests for comment.

The deal could be announced as soon as Monday, according to CNBC. Endeavor shareholders will own 51% of the combined company, while WWE shareholders would get 49%, CNBC reported, citing sources.

WWE shares, which have risen more than 30% this year, closed at $91.26 on Friday, giving the company a market capitalization of $6.8 billion. Endeavor has a market value of $11.3 billion.

Endeavor, which is the parent company of the popular UFC mixed martial arts organization, is led by Hollywood power broker Ari Emanuel, who earlier this month declined to answer questions about a possible deal.

Emanuel has worked to transform Endeavor into a sports and entertainment powerhouse, making more than 20 acquisitions. His investments - in bull riding events, the Miami Open and Madrid Open tennis competition, and fashion shows - sought to diversify the company, which grew from a legacy rooted in representing film and television talent.

Endeavor took a majority stake in the Ultimate Fighting Championship, the world's largest martial-arts organization, in 2016, in a $4.2 billion deal, and acquired the remaining stake in the company along with its IPO five years later.

In regulatory filings, Endeavor argues that it benefits from the rising value of owning a scarce - but popular - asset like sports.

In January, WWE said it would explore strategic options that could include a sale, shortly after Vince McMahon's return to the company. WWE hired the Raine Group and law firm Kirkland & Ellis as its advisers for the review.

McMahon had retired in July last year as the company's CEO and chairman, following an investigation into his alleged misconduct. He returned as the executive chairman of the media and entertainment company's board after co-chief executive officer and chairwoman Stephanie McMahon stepped down.

Upon his return, McMahon launched a strategic review, seeking to negotiate a sale before WWE's media rights, including for programs such as "SmackDown," came up for renegotiation, according to published reports.