With WWE and UFC set to merge by the end of the year to form a new publicly traded company, cost synergy is expected to happen. Cost synergy is the savings in operating costs and cost reductions due to the increased efficiencies in the combined company.
Cost synergy for the WWE and UFC merger is reportedly expected to be between $50 and $100 million.
Speaking on LightShed Live, Nick Khan was asked about the expected cost synergy.
"If you look at what Endeavor was able to take out, cost-wise, from UFC in 2016 or shortly after that deal was done, we have the same expectation here. We think 50 (million) is a really conservative number. We have integration teams now, we're going to get those in shape, I think we'll have a better sense of it in a month or two. We're going to be pretty aggressive with them to make sure that, for our shareholders and for our company, our organization is as lean and mean as possible, and we're going to rely on the Endeavor flywheel to make up the rest," he said. "There are other costs. What we always want to be protective of is our creative team, our production team. Keep in mind, none of us have anything to sell and the company would have been transacted at this price point if the product wasn't great. The most important thing is to leave the product untouched. Untouched, meaning, if Triple H and Kevin Dunn want to evolve it, great, but in terms of cutbacks there, that's not what we're looking to do. Other efficiencies around the company, we'll get in the middle of, and let's see how it shakes out."
WWE and Endeavor have yet to announce or report on any cost synergy when it comes to the WWE and UFC merger.
Fightful will update fans when that process begins to take shape.
Elsewhere during the interview, Khan commented on Vince McMahon's role in the creative process. You can find his full comments by clicking here.
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