Felix Upton on June 9, 2021
WWE stock jumped up in value today following widespread cuts throughout the company. Talk of Vince McMahon putting his company up for sale are also swarming in a big way. Many people within the company and outside of it believe that Nick Khan is positioning the company to be up on the sales block soon enough. Eric Bischoff isn’t buying into that.
During a recent episode of 83 Weeks, Easy E went into the subject of Vince McMahon possibly selling WWE. He does not believe that is going to happen right now, but he’s not saying it’s an impossibility in the distant future.
Nick Khan is doing a lot of things behind the scenes that are not only cutting the bottom line, but they are also doing a great job at consolidating their workforce. Many people are under the assumption that the writing is on the wall that WWE could be up for sale soon enough.
“The more I think about it, the more I’m convinced WWE is not for sale. I’m not suggesting that’ll never happen. Nobody knows for sure, and I’m not privy to any inside information. But I’m more and more convinced that what WWE is doing – and I think Nick Khan is probably the catalyst for a lot of this – is making good business decisions. What was their stock price before COVD? Somewhere around 70 bucks a share, give or take. Now, it dropped down to the mid-30s when COVID hit.”
“I was pretty convinced that without touring……the idea that component of that business model was going to evaporate, I was kind of like wow, this is not pretty for WWE. That entire company has been set up on a business model where live events and merchandising were such a big chunk of their overall revenue stream. The stock went down, and I thought it was gonna be hard for this company to get back where they were. But I think the stock is around 56 or 58 dollars a share. If I’m WWE, and I’m on the board or the chairman or just a shareholder, I’m sitting here wondering what they are gonna do to get that stock price back up to where it was. That should be everybody’s goal.”
The future is uncertain, but Nick Khan has certainly made a lot of changes that former co-Presidents, Michelle Wilson and George Barrios, would have never followed through with. WWE fired a lot of people during a pandemic, and at a time when the company is racking in record profits.
WWE also has guaranteed TV contract money and Saudi Arabian cash flowing in with more shows in the pipeline. The company could be attractive to the right buyer, but the big question is who would be in the market for such a purchase.
Who should buy WWE is anyone has to? Sound off in the comments!
June 9, 2021 11:17 am
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