Vince McMahon, World Wrestling Entertainment Inc.’s controlling shareholder and former chief executive officer, is seeking to return to the company and is proposing a possible sale of the business.
(Bloomberg) — Vince McMahon, World Wrestling Entertainment Inc.’s controlling shareholder and former chief executive officer, is seeking to return to the company and is proposing a possible sale of the business.
McMahon, who retired last year amid allegations of sexual misconduct, wants to come back to WWE as executive chairman, he said in a statement Thursday. He’s also nominating former executives George Barrios and Michelle Wilson to the board and is asking for a strategic review of the business to “capitalize on a unique opportunity to maximize long-term value for all WWE shareholders.”
The executive, who ran the wrestling giant for decades, said that with its TV rights coming up for renewal, it’s a good time to review the company’s options. Comcast Corp.’s NBCUniversal broadcasts WWE matches on its Peacock streaming service and USA cable network while Fox Corp. airs WWE’s Friday Night SmackDown.
“The only way for WWE to fully capitalize on this opportunity is for me to return as executive chairman and support the management team in the negotiations for our media rights and to combine that with a review of strategic alternatives,” McMahon said.
A spokesperson for WWE didn’t respond to a request for comment. The Wall Street Journal reported earlier on McMahon’s plans.
Exploring a sale “makes a lot of sense” and Comcast “seems like a good fit,” said Eric Handler, managing director at MKM Partners. The business would attract a large bidding pool given its size and worldwide popularity, Handler wrote in a note.
Comcast didn’t immediately reply to a request for comment.
Shares of Stamford, Connecticut-based WWE jumped 10% in early trading. The business was valued at $5.3 billion at the close of regular trading Thursday.
WWE’s board has been investigating McMahon for payments he made over the past 16 years to settle allegations of sexual misconduct and infidelity.
The company has said it found payments that McMahon agreed to make personally from 2006 through 2022 that should have been recorded as expenses by the company. It has also said it has received “regulatory, investigative and enforcement inquiries, subpoenas or demands” related to the matters.
McMahon has said he’ll cooperate with the probe and accept its findings.
McMahon’s push to return to WWE could lead to a potentially awkward family feud. WWE is now run by his daughter, Chairwoman and Co-CEO Stephanie McMahon, and Co-CEO Nick Khan. The two also serve on the board, along with Paul Levesque, who is chief content officer and Stephanie McMahon’s husband. The 77-year-old Vince McMahon owns 92% of the company’s Class B shares, which have 10 votes each.
(Updates shares and with analyst comment in sixth paragraph)
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