Vince McMahon is seeking up to $9 billion from a potential sale of World Wrestling Entertainment Inc., the firm he returned to manage this year, according to sources familiar with his thinking.
The company has already received proposals, according to the individuals, who requested anonymity because the conversations are confidential. WWE declined to comment.
Friday in New York, shares of WWE climbed as high as 4.9% to $91.48. As of Thursday’s close, the asking price was 37% higher than the company’s market worth of $6.5 billion. The stock price has increased by 30% this year due in part to takeover rumors.
McMahon, 77, is the controlling stakeholder of the WWE and was reinstalled as executive chairman in January to supervise a strategic assessment of the firm. McMahon quit the company when it was revealed that he had spent millions to settle sexual misconduct allegations.
On the list of potential purchasers for WWE are Endeavor Group Holdings Inc., the owner of Ultimate Fighting Championship, as well as Middle Eastern businessmen who have already made significant investments in golf and soccer.
Since its market valuation of $10.4 billion is slightly less than what McMahon desires, Endeavor would need financial assistance from a third party. However, the company has already demonstrated that it can integrate and expand a sports-media organization with a polarizing founder, the UFC.
Saudi Arabia is beginning to make significant investments in media and entertainment, and has previously indicated interest in purchasing Formula One from Liberty Media Corp. Last month, WWE Chief Executive Officer Nick Khan denied as “completely false” a story that the Saudis had already agreed to purchase the company.
»WWE Empire on Sale for $9 billion«
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