The stock market is a fun thing to watch as any little thing can influence whether a company makes or loses money, and the WWE has seen record profits in recent months.
With the return of Vince McMahon to power and the news of a potential sale of the WWE to Saudi Arabia’s Pubic Investment Fund, WWE stocks were up 7.5% in pre-market Wednesday (January 11).
WWE Stocks Rise 7% with the News of a Possible Sale
The news of the potential sale that’s been rumored has swept social media and stirred up WWE’s passionate fanbase, who appears ready to leave the company in droves if the sale becomes final.
Whether or not fans abandon the company is as likely as the sale being finalized at the moment, meaning everything is up in the air.
Setting the price
According to investing.com, the news of McMahon being unanimously voted in as Chairman of the Board has boosted their stock.
This follows Stephanie McMahon’s resignation as co-CEO, which leaves Nick Kahn as the sole CEO for the moment.
When it was announced last week that McMahon was returning to the company, analysts at Benchmark, according to investing.com, noted last week that the WWE is worth over $105 per share, and Citi analysts said, “We believe a sale of WWE is possible and are raising our target price from $86 to $110 to account for this scenario.”
It’s all about making the company look as lucrative as possible, and that was the believed reason behind the releases the last couple of years while the company made record profits.
By having less talent on the roster cut down on their expenses and made the company look better on paper.
It’s about the money
It shouldn’t surprise anyone that at the end of the day, it’s not about servicing the fans but making as much as he can as the WWE product was abysmal during McMahon’s run and improved dramatically after he resigned.
The main source of revenue for the WWE is through their TV and overall media deals, and once those contracts are signed the level of the product didn’t seem to be important anymore.
And when he came back, McMahon threatened to veto any new media deals unless he was put back into power and ready the company for sale.
With the rumors everywhere that the WWE and Saudi Arabia agreed in principle to the sale, WWE stocks have risen a reported 32% YTD (year to date) as it looks like McMahon and others may be buying the stocks to make a transition into a sale and being a private company begins.
What do you think about the WWE sale rumors? Let us know in the comments below.
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