Former WWE CEO Vince McMahon has announced his return to the company as the executive chairman of its board. This concludes a six month retirement for the wrestling tycoon that was brought on by the disclosure of hush money receipts and a sexual harassment scandal, allegations which Straight Arrow News covered in a prior profile on McMahon.
After WWE confirmed the comeback of its founder, that same day the company’s stock closed up 17%, hitting its top closing price since reaching an all-time high in April 2019. That increase came as the company also pledged to set a goal of aiming to “maximize value for all WWE shareholders.”
“In connection with the change in the composition of the Board of Directors and in cooperation with Vince McMahon as majority shareholder, the Company intends to undertake a review of its strategic alternatives,” said the organization in a statement.
The Wall Street Journal has reported that this is all part of the sports entertainment giant readying to explore a sale. According to CNBC, WWE has hired JPMorgan to advise the company during the process, and McMahon’s return could help any proposed transaction go much smoother. Despite him stepping down as CEO back in July, McMahon still remains the majority shareholder of WWE, and having him on the board will give prospective buyers confidence he is supportive of a sale.
“My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder,” said McMahon in a statement.
Despite also stating that “WWE has an exceptional management team” and that his return would not “have any impact on their roles, duties, or responsibilities,” McMahon’s renewed presence at the company has already coincided with several leadership changes. His daughter, Stephanie McMahon, announced her resignation as co-CEO of WWE less than one week after her father came out of retirement. Meanwhile, two of the company’s board members have also resigned, as three other members were fired and two former executives were added to the board.
With a list of potential buyers that include big entertainment industry players like Disney, Netflix and Amazon, WWE’s ultimate price tag could exceed $6 billion, per Yahoo Finance’s market cap valuation. Saudi Arabia’s Public Investment Fund was also rumored to have interest in purchasing the company, however, Bleacher Report has reported that such a deal is not imminent.
“There is no deal in place at this precise moment for WWE to be sold to Saudi Arabia’s Public Investment Fund or any entity, sources say,” tweeted combat sports insider Ariel Helwani. “The organization is still exploring all options, I’m told.”
Experts have predicted that if a WWE sale does happen, it will likely come within the next three to six months, before decisions need to be made on renewing the company’s television rights agreements.
