World Wrestling Entertainment and the parent company of the Ultimate Fighting Championship have merged to create a $21.4 billion sports entertainment company, they announced Monday.

WWE chairman Vince McMahon has sold the company to Endeavor Group Holdings Inc., which will have 51% ownership in the new company. WWE stakeholders will own 49%.

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"This is a rare opportunity to create a global live sports and entertainment pureplay built for where the industry is headed," Endeavor CEO Ariel Emanuel said. "For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together."

WWE has undergone significant changes over the past year. Vince McMahon announced his retirement in July following an investigation into sexual misconduct allegations and then returned to his role as executive chairman of the board after a unanimous vote in January.

In a subsequent move, McMahon's daughter, Stephanie, resigned from her role as co-CEO and chairwoman. She served alongside fellow CEO Nick Khan and chief content officer and former WWE star Paul "Triple H" Levesque.

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Now, WWE will head in a new direction.

"The new company will be well positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands," McMahon said. "I, along with the current WWE management team, look forward to working closely with Ari and the Endeavor and UFC teams to take the businesses to the next level."

McMahon will keep his role as executive chairman of the board in the joint venture, while Emmanuel will remain as the CEO. Dana White will stay as the president of UFC with Khan remaining president of WWE.

"Given the incredible work that Ari and Endeavor have done to grow the UFC brand – nearly doubling its revenue over the past seven years – and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders," McMahon said.

WWE has distribution deals with FOX, NBC Universal and BT Sport, among others. The WWE Network also houses the company's video catalog and is available in over 180 countries. In the United States, Peacock streams WWE Premium Live Events and access to the video library. WWE programming is also televised in the United States each week.

The flagship show, "Monday Night Raw," airs on USA Network. The company also has a developmental brand "NXT" that is televised Tuesdays. Later in the week, WWE holds a national broadcast of "Friday Night Smackdown" on FOX.

WWE had more than 7.5 billion digital and social media views in January and February of this year, up 15% from the same time frame a year ago.

Shares of World Wrestling Entertainment Inc., based in Stamford, Connecticut, slumped 4% before the opening bell Monday. Shares of Endeavor, based in Beverly Hills, California, rose 3%.

Contributing: The Associated Press

This article originally appeared on USA TODAY: WWE, UFC unite for new $21.4 billion sports entertainment company