Vince McMahon wants $9 billion to sell WWE
Vince McMahon is looking to raise up to $9 billion in a potential sale of World Wrestling Entertainment Inc., the company he once again helmed this year, according to people familiar with his mindset.
The company has already received offers, said people, who asked not to be identified as the talks were private. WWE declined to comment.
WWE shares rose a whopping 4.9% to $91.48 in New York on Friday. As of Thursday’s close, the asking price was 37% above the company’s $6.5 billion market value. The stock is up 30% this year, in part on takeover speculation.
McMahon, 77, is the majority shareholder of WWE and re-emerged as executive chairman in January to oversee a strategic review of the company. McMahon left the firm last year after it was revealed he had paid millions of dollars to settle sexual misconduct claims.
The list of potential buyers for WWE includes Endeavor Group Holdings Inc., owner of Ultimate Fighting Championship, as well as Middle Eastern investors who have already made major investments in golf and soccer. Endeavor would need third-party financial help given its $10.4 billion market cap is just a bit more than what McMahon wants, but the company has already revealed that it’s a sports media business with a divisive founder in the UFC integrate and expand.
Saudi Arabia is beginning major investments in media and entertainment and is already interested in buying Formula 1 from Liberty Media Corp. stated. WWE Chief Executive Officer Nick Khan dismissed as “completely false” a report last month that the Saudis already had a deal to buy the company.
Larger strategic buyers like Netflix Inc. and Walt Disney Co. may have concerns about acquiring a McMahon-controlled company that affects the sometimes chaotic personal lives of its wrestlers. McMahon learned the business from his father, an East Coast events promoter. He built WWE into an international entertainment powerhouse, packing arenas and regularly programming on Fox Corp.’s US network. and Comcast Corp. radiates.
WWE is in the early stages of negotiations for its next TV deals and could renew its current deals with Fox and Comcast. Any media company interested in broadcasting the programs could also use this moment to buy the entire business. WWE has been one of the most popular draws for Comcast’s Peacock streaming service.
But McMahon may not find many buyers willing to pay his price given the shaky global economy and rising interest rates. A valuation of $9 billion represents about seven times the company’s revenue of $1.29 billion last year and 23 times its adjusted operating income before depreciation, both at the high end of the entertainment industry.
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