Reuters Insider - UFC Sold for $4 Billion to Investors

Hollywood SA

12/07/2016 08:58

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        UFC, the mixed-martial arts organization has been 
                     sold to the WME-IMG Hollywood talent agency and a 
                     group of other investors for approximately $4     
                     billion. Photo: AP                                
 
 
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 Short Link:  http://reut.rs/29KRhgL  
 
 
Transcript (May be auto-generated)

                 The mixed martial arts organization UFC has just delivered a knockout punch. The
Ultimate Fighting Championship has been sold for approximately $4 billion to a 
group led by Hollywood's talent agency WME-IMG. The companies did not disclose 
the financial details of the deal. UFC President Dana White will remain in his 
role. White purchased the then struggling organization in 2001 for $2 million 
with friends Lorenzo and Frank Fertitta. WME-IMG says the Fertitta's will retain
a passive minority interest, and Lorenzo Fertitta will step down as UFC Chairman
and CEO as part of the deal. The Abu Dhabi government still owns 10% of UFC as 
well. The investment group includes private equity firm Silver Lake Partners 
which owns WME-IMG, and Kohlberg Kravis Roberts along with the investment firm 
of Billionaire Michael Dell. The UFC, founded in 1993 as the Ultimate Fighting 
Championship, stayed violent fights that were banned or unregulated in many 
areas. It's grown from a money-losing promotion in a minor sport into a global 
entertainment brand. UFC has grown in popularity particularly with millennials 
who've lifted UFC athletes such as Conor McGregor, Brock Lesnar, and Ronda 
Rousey to mainstream fame. The sport, once labeled by Arizona Senator John 
McCain as human cockfighting, has gained widespread acceptance and popularity 
using the Internet and cable TV to get its product in front of young fans. The 
UFC also sought legitimacy by welcoming regulation by athletic commissions. New 
York finally lifted its ban on MMA in early 2016 putting the sport in all 50 
states. The organization has more than 500 athletes on the contract. The UFC 
stages roughly 40 events a year and is broadcast in more than 150 countries 
reaching 1.1 billion television households