Vince McMahon, sources say, is hoping to sign a $9 billion deal by selling World Wrestling Entertainment (WWE). WWE majority owner McMahon, 77, reinstated himself as the company’s chairman in January to lead a strategic review of the company. McMahon left the company earlier in 2022, following reports that he spent millions of dollars to settle sexual misconduct allegations.
Rumors of the acquisition helped the stock rise 30% in 2023. On February 17, WWE shares rose 4.9% to $91.48 on the New York Stock Exchange (NYSE). The asking price is 37% higher at the end of the previous day than the company’s $6.5 million market value.
The $9 billion represents the company’s annualized value of about $1.29 billion and 23 times its operating earnings before depreciation and amortization, both high numbers for the company. Given the uncertainty in the global economy and rising mortgage rates, McMahon may not find many customers willing to pay his bills, according to Bloomberg.
According to the people, who asked to remain anonymous because the discussion is confidential, the company has already received an offer. WWE chose not to comment. Ultimate Fighting Championship owner Endeavor Group Holdings, along with Middle Eastern investors who have already invested heavily in golf and soccer, are among potential buyers of WWE, Bloomberg reported.
Since its market capitalization of $10.4 billion is slightly higher than McMahon’s demand, Endeavor will need third-party financing. However, the company has already shown the UFC that it can successfully collaborate and grow the sports media company and the debate producer.
