Is WWE on sale?

WWE could experience some major changes in the coming months. Along with the forthcoming media rights deals, the future of the sports entertainment giant is up for grabs as various streaming services eye for an opportune acquisition.

Vince McMahon’s return to the Board of Directors has taken the wrestling world by storm. Due to his shareholding, the former Chairman carries enormous voting power and replaced three members of the Board this Friday alongside former presidents Michelle Wilson and George Barrios.

The wrestling promoter, who built the world’s largest wrestling promotion from scratch in 1982, is planning to put WWE on sale. CNBC stated that Vince is consulting with investment banking company JP Morgan on a potential sale scenario. The report also suggests that streaming service giants like Netflix and Amazon could join the bidding war.

Vince’s intentions caused a 12% spike in shares as of closing Friday. Even the market capitalization of the Stamford-based promotion rose by 17% and stands at over $6 billion USD. Interestingly, the company was initially worried about investors reacting poorly to McMahon’s return.

Presently, the Stamford-based promotion is not up for sale. The plans are in motion and could take effect in the next three to six months as McMahon enters negotiations for broadcasting rights of RAW and SmackDown. NBCUniversal and Fox Network, potential contenders for the bidding scene, are partnered with the company until 2024.

---

Why did Vince McMahon return to WWE?

In his press release on January 5, Mr. McMahon disclosed his goal of satisfying the shareholders with the company's upcoming media rights deal. He thought it would be an opportune opportunity for the company to reincorporate the “controlling shareholder” in the Board so he could carry out the plans.

“WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms.”

Vince continued on the topic of his reason for returning:

“The only way for WWE to fully capitalize on this opportunity is for me to return as Executive Chairman... 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.” (H/T Variety)

The 77-year-old is plotting to take on the role of Executive Chairman. Once he gets the seat, Vince can relate to the analysis provided by JPMorgan and pursue the sale of pro wrestling's Titanland.