WWE and UFC have made the decision to combine under Endeavor Group, a recently listed company.
According to the arrangement, Endeavor owns 51% of the shares of UFC while WWE controls 49%.
According to the companies, the agreement valued the new company at more than $21.4 billion (£17.3 billion), with UFC valued at $12.1 billion (£9.8 billion) and WWE at $9.3 billion (£7.5 billion).
In premarket trade, shares of WWE fell by 4.5% while those of Endeavor increased by 4%.
“This is a rare opportunity to develop a worldwide live sports and entertainment pureplay suited for where the industry is going,” said Ariel Emanuel, CEO of Endeavor.