The merging of the UFC and WWE is indeed an incredible deal in the field of sports entertainment. In one hand, stands the world of MMA athletes with the biggest sports entertainment dwelling on the other hand. This merging of the companies is indeed going to benefit both the parties, and changes have been efficient in Vince McMahon’s company already. However, at present trouble is arising concerning litigation against Vince McMahon’s company for the merging of WWE with UFC.
Trouble with the WWE and UFC merger
A press release by Julie and Holleman stated that they are investigating the proposed merger between WWE and the endeavour where Vince McMahon’s company and UFC will combine together to form a new publicly traded company.
On the other hand, Endeavour is a Sports and Entertainment company that consists of companies like the UFC, WME, and IMG. Silver Lake which is a private equity firm, controls the Endeavour, and holds the majority of the company’s voting power. On the other hand, the majority of the voting pwoer of WWE is owned by Vince McMahon.
The press release
As mentioned about the Julie and Holleman LLP press release, it is a boutique law firm that focuses on the shareholder litigation which includes the mergers and acquisition cases, derivative actions, securities fraud calss actions, as well as corporate investigations.
They are investigating legal claims on the fairness of the merger terms as well as the potential conflicts of interest. Among the other things from which Silver Lake might have interest, that can diverge from the interests of the shareholders and it could be using its controlling stake for extracting unfair benefits. They are also concerned that the merger which is proposed in this case might have driven the sale if uts IMG business to any other private equity firm.