On Monday, shares of WWE or World Wrestling Entertainment went down as it agreed on its sales to the Endeavor Group.
Its stock price fell by -2.15% to $89.30 per share on April 03. However, it is expected to rise by 0.28% to $89.55 apiece in the upcoming session.
In terms of the agreement, a new publicly-traded firm would be made. Endeavor Group (EDR) would own 51.00%, while WWE would have 49.00% of the ownership.
According to Ariel Emanuel, the CEO of Endeavor, it is a rare chance to create global live sports and entertainment. It is built toward the industry’s right direction.
He will be the CEO of the new company, while Vince McMahon’s role would be the executive chairman.
The newly-formed company is anticipated to bring in $50.00 million to $100.00 million in annualized run-rate cost partnerships.
Based on analysts, the deal would equate to a $102.00 per share valuation for WWE. They added that the agreement should be considered positive for the company. It is expected to close in the second half of the year.
On its leadership sector, Endeavor President and COO Mark Shapiro would retain his position in the new company. In addition, Dana White would still be the President of UFC. Also, WWE CEO Nick Khan would remain President of the wrestling business.
Contract Ends the Independence of WWE
The agreement marked the end of the WWE as a family business. In the early 1980’s McMahon purchased the company from his father. He then turned it into an entertainment empire.
However, he faced many challenges during his time in WWE. In July, he retired from the company. A stream of allegations of affairs and misconduct follows this.
According to a securities filing, McMahon had a two-year employment contract. He admitted that he made mistakes both personally and professionally.
He added that he would be in a relatively comfortable position with the creative decisions of WWE when the new companies emerge.
