Report: Saudi fund expected to take $400M stake in UFC's parent company
The UFC's parent company is going into business with Saudi Arabia.
The country's Public Investment Fund is expected to take a $400-million stake in the Ari Emanuel- and Patrick Whitesell-led Endeavor (formerly WME-IMG) - which purchased the UFC in the summer of 2016 for a little north of $4 billion - this week, sources told Bloomberg on Sunday.
According to several people with knowledge of the deal, the transaction will account for a stake in the vicinity of seven percent. Saudi Arabia will gain a seat on Endeavor's international advisory board, and it's currently discussing an initiative involving its General Sports Authority and General Entertainment Authority regarding a variety of projects.
The deal comes amid Crown Prince Mohamed bin Salman's efforts to diversify Saudi Arabia's economy and lessen its dependence on oil. He has reportedly made a concerted effort to invest in the entertainment sector, which longstanding bans on several avenues of cultural expression have rendered dormant over the past several decades.
Emanuel is expected to host Bin Salman as a guest of honor in Los Angeles next month.