Following Saudi Arabia’s $100 million MMA promotion purchase, UFC and WWE see huge drop in market value

Saudi Arabia's $100 million PFL promotion purchase, has resulted in huge drops in the market value of UFC and WWE.

Following Saudi Arabia’s $100 million MMA promotion purchase, UFC and WWE see huge drop in market value

UFC President Dana White and WWE chairman Vince McMahon (Image Courtesy: Imago) (Image Courtesy: Imago)

Shares of Endeavor Group, the parent company of WWE and UFC, experienced a significant drop in value on Thursday. It came in response to the Saudi Arabian Public Investment Fund’s decision to invest $100 million in the emerging PFL.

Sportico first reported that the PFL had secured a $100 million equity investment from the Saudi Arabian PIF. It is the main body for Saudi sports-related investments. This investment is directed towards the parent company of PFL. It has plans to support the launch of two new initiatives in the upcoming year. A PFL league for the Middle East and North Africa region and establishing the company’s “Super Fight” division.

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Additionally, these funds will be utilized to attract more prominent MMA talents to the promotion. It also aims to help in the overall growth of MMA in Saudi Arabia. It is expected that Saudi Arabia will also play a significant role in hosting and financing numerous PFL pay-per-view events in the coming years.

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The stock price of WWE experienced a decrease of $13.50 per share, equivalent to a 12% decline in its value. In comparison, Endeavor’s shares also saw a reduction of $2.26, marking a 9% decrease. In the upcoming weeks, Endeavor is in the process of finalizing its acquisition of WWE and intends to merge it with the UFC, forming a publicly traded entity known as TKO Group Holdings. This drop in stock prices is primarily a reflection of investor concerns regarding the potential impact of Saudi investments in PFL, as it could emerge as a significant competitor in the MMA industry, potentially challenging the position of the UFC as the top MMA promotion. 

Related: WATCH: “When keeping it real goes wrong” – Fan immediately regrets asking top UFC fighter Belal Muhammad to kick him

Professional Fighting League to acquire Bellator to compete with the UFC-WWE merger

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Scott Coker (Image Courtesy: Imago)

The Professional Fighters League is currently in talks with Paramount regarding the potential acquisition of rival organization Bellator MMA. Bellator MMA is currently the second biggest MMA promotion in the world, following the UFC. When it comes to the quality of fights and viewership, Bellator has been consistent for some time now.

In June, Bellator’s president, Scott Coker, acknowledged that the PFL was one of the interested parties considering the purchase of his promotion. However, he chose not to disclose details about how the possible merger would be structured.

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“I’d rather not speculate. Let’s just wait to see what happens,” Coker said, according to Cole Shelton of BJPenn.com. “It could go a lot of different ways.”

After the Saudi Arabia Public Investment Fund acquired a minority share in the PFL for an estimated $100 million, Before this investment, the PFL’s estimated valuation ranged from $500 million to $1 billion. With this new collaboration, the promotion might be looking strong towards making some new moves, and buying Bellator might be one of their first priorities.

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