WWE is up for sale: Speculations of Vince McMahon’s $9-billion acquisition deal push stock 30% up
1 min read . Updated: 18 Feb 2023, 07:41 AM IST
PremiumVince McMahon is looking to get as much as $9 billion in a potential sale of World Wrestling Entertainment (WWE), sources reveal.
Vince McMahon, according to sources, is hoping to get a $9-billion deal from the sale of World Wrestling Entertainment (WWE). The WWE's controlling shareholder, 77-year-old McMahon, restored himself as the executive chairman of the company in January to lead a strategic review of the business. McMahon left the company earlier in 2022, following reports that he had spent millions of dollars to resolve sexual misconduct charges.
Acquisition rumours have helped the stock increase 30% in 2023. On February 17, shares of WWE increased as much as 4.9% to $91.48 at The New York Stock Exchange (NYSE). The asking price was 37% higher on the previous day’s close than the company's $6.5 billion market value.
The said $9 billion represents a valuation that is around seven times the company's $1.29 billion in annual sales and 23 times its adjusted operating income before depreciation and amortisation, both high figures for the entertainment sector. Given the unstable global economy and rising loan rates, McMahon might not find many customers prepared to pay his price, according to Bloomberg.
According to the people, who asked to remain anonymous because the conversations are confidential, the company has already received offers. WWE chose not to comment. The Ultimate Fighting Championship's owner Endeavor Group Holdings, as well as Middle Eastern investors who have already made significant investments in golf and soccer, is among the potential purchasers for the WWE, Bloomberg reported.
As its market capitalisation of $10.4 billion is only slightly higher than what McMahon desires, Endeavor would require financial assistance from a third party. Nevertheless, the company has already demonstrated in the UFC that it can successfully integrate and expand a sports-media company with a contentious founder.
Saudi Arabia has already expressed interest in purchasing Formula One from Liberty Media Corp as it begins to make significant investments in the media and entertainment industries. The Saudis allegedly already had a deal in place to purchase WWE. However, WWE CEO Nick Khan earlier said that there was no truth behind the claim.
WWE may decide to extend its current contracts with Fox and Comcast as it begins to negotiate its upcoming TV deals. One of Comcast's Peacock streaming service's most well-liked draws has been WWE.
(With agency inputs)