Ultimate Fighting Championship owner Endeavor Group Holdings Inc. and WWE are combining to create a $21.4bn sports entertainment company.
Under the deal, Endeavor will hold a 51% controlling interest in the new company, while existing WWE (World Wrestling Entertainment) shareholders will hold 49%.
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 lead by Endeavor CEO Ari Emanuel. Mr McMahon will be executive chairman, the position he currently holds at WWE.
It comes after WWE held its popular WrestleMania event over the weekend.
Last year, WWE booked revenue of $1.3 billion and received more than 16 billion social video views in the final quarter of last year.
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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.
McMahon retired as WWE CEO and chair in July last year following an investigation into alleged misconduct.
His daughter Stephanie McMahon then took over. But she resigned a week after he returned to the board in January.
