Vince McMahon Looking to Sell WWE for $9 Billion
Vince McMahon‘s Strategic Review of WWE Paying Off
Vince McMahon’s strategic review of world wrestling Entertainment Inc. is paying off. He has now received some juicy offers for the company. The company is currently valued at $6.5 billion. And to top it off, the stock price has skyrocketed up to 4.9% hitting $91.48 in New York on Friday. This represents the investor’s interest in the fake fighting franchise. McMahon must be feeling like a champ right about now. Let’s just hope he doesn’t end up taking a chair to the face during negotiations.
Endeavor Group Holdings Inc. might be acquiring the WWE after all, but there’s a small problem. While Endeavor, the owner of Ultimate Fighting Championship (UFC), is interested, its market capitalization of $10.4 billion is only slightly more than the $9 billion asking price set by McMahon. Because of that, they may need financial assistance from a third party to seal the deal. However, if anyone can handle a controversial founder and grow a sports-media business, it’s endeavor. They already integrated and grown the UFC, so they can handle the WWE drama as well. Who knows, they may even go as far as merging the two companies as well to give us a fake fight that’ll make our heads spin. Can you imagine Conor McGregor vs John Cena?
McMahon May Need to Consider Lowering His Asking Price
In addition to Endeavor, Investors from the Middle East are also eyeing the WWE as a potential acquisition. They’re already made some significant investments in golf and soccer. So, why not add some fake fighting to their portfolio? Let’s not forget about Saudi Arabia. They’re also making some moves in the media and entertainment industry, and even expressed interest in buying Formula One. But hold your horses, because WWE CEO Nick Khan dismissed a report last month that the Saudis had already agreed to purchase the company, calling it “totally false.” So even off the stage, there’s still drama surrounding the WWE.
Despite the interest from potential buyers, McMahon might have a hard time finding a buyer willing to meet his lofty asking price. The uncertainty surrounding the global economy and rising interest rates are causing many investors to think twice before making any big investments. A valuation of $9 billion is over price, considering the company’s sales of $1.29 billion last year. That’s about seven times its sales and 23 times its adjusted operating income before depreciation and amortization. So it’s no surprise that buyers are hesitant to pay so much for a premium for a company that’s known to be a bit controversial. Maybe McMahon may have to lower his price or come up with some new gimmicks to attract new buyers. Even better, they can get some of the wrestlers to perform some financial stunts instead of physical ones.
Summary of WWE Sale Situation
To sum everything up, the WWE is up for sale, and its controlling shareholder is seeking as much as $9 billion for the company. Despite interest from several potential buyers, larger buyers may be hesitant due to the company’s controversial reputation. With the current economic climate, it will be difficult for McMahon to find a buyer willing to pay his asking price. Now go check out our article on how employees are burning out becomes of employees’ impossible demands.
