It was a busy day for dealmakers, so let’s recap some of the biggest movers. 🤩
After months of searching for a deal, Vince McMahon’s World Wrestling Entertainment (WWE) has agreed to merge with the UFC as part of a deal with Endeavor Group. The deal values WWE at $9.3 billion and Endeavor’s asset UFC at $12.1 billion. 💰
Ari Emanuel’s Endeavor will control a majority 51% stake in the new company, while WWE shareholders will own the remaining 49%. Endeavor will appoint six members, and WWE will appoint five to the eleven-person board of directors. Finally, the newly-formed company will trade on the New York Stock Exchange under the ticker symbol $TKO.
As for management, Ari Emanuel will act as CEO for both Endeavor and the newly-formed company. Vince McMahon will serve as executive chairman, and Endeavor President and COO Mark Shapiro will serve those roles at both companies. Dana White will remain president of UFC, and WWE CEO Nick Khan will remain president of the wrestling business. 👨💼
Real estate investment trust Extra Space Storage is acquiring Life Storage in a $12.7 billion all-stock deal. The combined company will become the largest U.S. self-storage operator by store count. Extra Space and Life Storage shareholders will own about 65% and 35% of the combined company. 📦
The deal comes shortly after Life Storage had turned down an $11 billion all-stock takeover bid from Public Storage. While the self-storage business has cooled off from its pandemic-level highs, it remains a significant asset class for investors.
Copper and zinc miner Teck Resources officially rejected an unsolicited $22.5 billion takeover bid from Glencore PLC. Teck executives say they’re hesitant to expose their shareholders to Glencore’s large thermal coal business, unwanted oil trading business, and significant jurisdictional risk. They said that the company is not currently contemplating a sale and is instead focused on its proposed restructuring plan set for a shareholder vote on April 26. ⚒️
Meanwhile, Glencore said this proposal was a merger and not a takeover and that it would not increase its offer price. This is the second time talks between the companies have broken down, with the first occurring in 2020.
The Federal Trade Commission (FTC) has ordered Illumina to divest its $7.1 billion acquisition of cancer test developer Grail. The regulator said the deal would stifle innovation and competition in the U.S. cancer market. The ruling comes months after an administrative judge dismissed the regulator’s initial challenge. It’s likely a welcome sign for activist investor Carl Icahn and other shareholders, who looked down on the controversial deal when it was originally announced. 🚫
Shares of Cineworld, which owns Regal Cinemas, fell 50% after stopping its efforts to sell its U.S., U.K., and Irish businesses. The world’s second-largest movie theatre chain is also restructuring its debt with lenders to help it exit bankruptcy. However, the deal does not provide any recovery of funds for shareholders. 🎥
The board of HSBC unanimously recommended that shareholders vote against proposals to restructure the bank and pay fixed dividends. Executives and the board say breaking up the bank by restructuring or spinning off its Asia business would create “a major period of uncertainty” for clients and other stakeholders. 🗳️
And lastly, BioNTech signed a licensing agreement with Duality Biologics for two antibody-drug conjugates (ADC) assets for solid tumors. The agreement is potentially worth $1.5 billion, plus royalties on net sales, in addition to the $170 million upfront payment. 🤝