This Is Who Might Be Interested In Buying WWE From Vince McMahon!
Before the company’s television rights were renewed, Vince McMahon rejoined the board of directors of World Wrestling Entertainment to help facilitate future sale negotiations.
The idea that WWE might sell is familiar. According to CNBC, it appeared to be a sale target in April and only became more alluring in July after a sexual misconduct controversy. The justification is simple: WWE is valuable intellectual property.
Owning intellectual property (IP) enables streaming services to offer material exclusively without the hassle of periodically securing license rights in an auction. Additionally, WWE has something to offer the theme park and merchandise industries.
According to people familiar with the situation, WWE has recruited JPMorgan to assist the company in providing advice on a prospective sale. JPMorgan chose not to respond. A WWE spokesman couldn’t immediately come to comment.
The individuals, who requested anonymity because the talks are confidential, said that if a deal is confirm, it will probably occur within three to six months. Before renewing its TV rights agreements, WWE intends to speak with possible buyers.
Assisting in a sale Although there might still be snags, McMahon’s return should contribute to a smooth sale process.
The company’s majority shareholder is the 77-year-old former CEO and head of WWE. After an inquiry revealed that he had paid four women close to $15 million over a 16-year period to allay charges of alleged sexual misconduct and infidelity, he resigned.
Potential purchasers will feel more confident that he supports the specifics of any transaction if he returns to the board.
In a statement on Thursday, McMahon said his return would enable WWE and any deal counterparties to proceed with these procedures with confidence that the controlling shareholder would support them.
The return of McMahon has no impact on the current hierarchy. Nick Khan, a former CAA agent, and Stephanie McMahon serve as co-CEOs. However, it is still unknown what kind of position, if any, McMahon would desire at WWE if he sold the business.
WWE has stated to investors that McMahon’s contribution to the organization is crucial to our ability to develop well-liked characters and imaginative plotlines. McMahon has no official influence over the company’s creative strategy.
Unknown is whether a buyer would feel comfortable with McMahon taking on a more active position in the business. But McMahon’s life’s work is WWE. A sale might only occur if at least a few conditions are met.
Due to the rise in sales rumors, WWE’s market value increased by about 17% on Friday, reaching more than $6 billion. The legacy media firms, streamers, and entertainment holding companies are the three potential purchasers for WWE. Here are several potential participants.
