Difficult to negotiate acquisition of World Wresting Entertainment – sources

April 2 (Reuters) – Endeavor Group Holdings Ltd. (EDR.N)the parent company of the popular UFC mixed martial arts franchise, is in talks to acquire World Wrestling Entertainment Inc (WWE) (WWE.N) It is an all-stock deal, according to a person familiar with the matter.

The sources requested anonymity because the matter is confidential. Endeavor and WWE did not immediately respond to requests for comment.

The deal could be announced as early as Monday, CNBC reported. CNBC, citing sources, said Endeavor shareholders would own 51 percent of the combined company, while WWE shareholders would get 49 percent.

Endeavor, the parent company of the popular UFC mixed martial arts organization, is led by Hollywood power broker Ari Emanuel, who declined to answer questions about a possible deal earlier this month.

WWE shares are up more than 30 percent this year, closing Friday at $91.26, giving the company a market value of $6.8 billion. Endeavor has a market cap of $11.3 billion.

In January, WWE said it would explore strategic options that could include a sale shortly after Vince McMahon returned to the company. WWE hired the Raine Group and law firm Kirkland & Ellis as review consultants.

McMahon retired as the company’s chief executive and chairman last July following an investigation into alleged misconduct. He returned as executive chairman of the media and entertainment company’s board after co-CEO and chairman Stephanie McMahon stepped down.

Upon his return, McMahon took over the company and initiated a strategic review after making some adjustments to the company’s board of directors.

Reporting by Milana Vinn and Aniban Sen in New York and Dawn Chmielewski in Los AngelesEditing by Matthew Lewis

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