Saturday, March 12, 2011

Strikeforce Acquisition a Key Cog in the Global Expansion Plans of the UFC [Updated]

Dana White officially announces the purchase of Strikeforce by Zuffa

 

This is great news for MMA fans! It may take some time, but this acquisition should eventually lead to some interesting match ups and, more importantly, help to ensure that the best fighters in the world will always be able to fight one another.

Time will tell, but from a business standpoint I see this acquisition as exactly what the UFC needs in order to make a push into new global markets. Zuffa has been faced with a very common problem for successful businesses: how do we grow without eroding the success that we currently enjoy? With two separate promotions at their disposal, Zuffa can now push forward into new markets with Strikeforce while maintaining their strong hold with the UFC in North America.

 ESPN Contributor John Gross fills in some of the details of the acquisition


Below, I've attempted to capture the current state of Zuffa, llc (including Flash Entertainment who owns a 10% slice of the pie)  within a single graphic. The key takeaway is that there is not much in the way of major competition out there for the UFC anymore.  More importantly, Zuffa appears to be positioning themselves for an aggressive global expansion. With two major promotional brands, key cross promotional relationships, and a growing MMA fight library I like their chances for success. 
Click Image for Full Size Version




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