WWE, UFC to merge in $21 bln entertainment giant

STORY: Pop culture giant World Wrestling Entertainment will combine with Endeavor Group's mixed martial arts franchise UFC.

They will form a new publicly listed entertainment company valued at around $21 billion.

The companies announced the deal Monday (April 3)

It merges two of the biggest names in wrestling and entertainment, and completes a months-long sale process for WWE.

Endeavor shareholders will own 51% of the combined company, while WWE stockholders get 49%.

Endeavor is led by Hollywood power broker Ari Emanuel, who will take charged at the merged entity.

WWE is a global entertainment giant which led to the rise of movie stars like Dwayne 'The Rock' Johnson and Dave Bautista.

In January, WWE said it would explore strategic options for a sale.

It came shortly after Vince McMahon - who held a majority of WWE's stock - returned to the company.

McMahon regularly appeared as a major character on television, even competing in matches himself.

He retired last year as company CEO and chair due to an investigation into his alleged misconduct.

But he will now keep his role at the new company.

A source said the deal was referred to as Project Stunner and that UFC and WWE would contribute cash to the new company, so it holds nearly $150 million.

The agreement gave WWE an enterprise value of $9.3 billion.

The companies said the new firm would be listed under ticker symbol "TKO" on the New York Stock Exchange.