Essentially, because it's owner wanted it to.
In the year 2000, WCW was in financial peril. A deal to sell to Fusient Media had fallen through, and AOL-Time Warner (the owners of WCW) had announced that WCW's flagship show, Nitro, was being cancelled.
So WWE Owner Vince McMahon came in and paid practically peanuts for the company and all it's enteties. But instead of continuing the company as a stand-alone entity, Vince brought in most of the better talent he owned to WWE and basically killed the brand.
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