Vince McMahon “is taking steps” to return to WWE as Executive Chairman to oversee rights deals and a possible sale

Vince McMahon said today that he is taking steps to return to Word Wrestling Entertainment as Executive Chairman to be in position while the company builds another round of rights deals, which he believes should be accompanied by discussions of strategic alternatives. This would mean selling the company.

WWE’s controlling shareholder resigned as CEO and chairman last year amid a scandal surrounding payouts to women. But he said today that his new role “allows for unified decision-making during the company’s upcoming media rights negotiations and a parallel full assessment of the company’s strategic alternatives, which Mr. McMahon believes is the right course of action and in the best interests is. of WWE.” and WWE shareholders amid the current momentum in the media and entertainment industry.”

WWE officials were not immediately available for comment.

The company, with a number of highly popular shows soon to be revamped, is now led by co-CEOs Stephanie McMahon (Vince’s daughter) and former top sports agent Nick Khan, with ex-wrestler Triple H (Paul Michael Levesque) as the main content acts officer. Weekly performances Monday Night Raw and NXT aired on NBCUniversal’s US network, and Friday night smackdown on Fox, have five-year contracts ending in 2024. Peacock will retain the streaming rights until 2026. The idea is that instead of spending $600-$700 million on WWE rights, an affiliate might be more interested in buying the company.

Peacock parent Comcast is the most rumored potential buyer. A potential selloff has supported WWE stock in 2022, making it the biggest gainer (of just three) in a notorious year for media stocks.

See McMahon’s full statement here:

Vince McMahon, founder and majority shareholder of World Wrestling Entertainment Inc. (“WWE” or the “Company”) (NYSE: WWE) announced today that it has taken the necessary steps to position the company as a unique opportunity to create long-term value for all WWE shareholders. The actions, which were communicated today by written approval to the WWE Board of Directors, include the election of Mr. McMahon, as well as former WWE co-presidents and board members and current co-founders Michelle Wilson and George Barrios to the board. and co-CEOs of Isos Capital Management – and the required removal from the board of three directors. Mr. McMahon expects to assume the role of Executive Chairman of the Board of Directors.

Mr. McMahon’s new role will allow for unified decision-making during the Company’s upcoming media rights negotiations and a concurrent full assessment of the Company’s strategic alternatives, which Mr. McMahon believes the right course of action is and is in the best interest of WWE and is. WWE Shareholders current dynamics in the media and entertainment industry. Like Mr. McMahon, he informed the Board that he believed there was limited ability to create significant value for all shareholders and that this required the evaluation of strategic alternatives in conjunction with media rights negotiations. He also informed the board that he believes these two initiatives require the direct participation, leadership and support of Mr. McMahon as the controlling shareholder.

“WWE is entering a critical time in its history as upcoming media rights negotiations coincide with increased industry-wide demand for quality content and live events, and more companies looking to own the intellectual property on their platforms,” ​​said Mr. McMahon said. “The only way for WWE to take full advantage of this opportunity is to return as Executive Chairman and assist the management team in negotiating our media rights and combining that with an evaluation of strategic alternatives. My return will allow WWE, as well as all counterparties to transactions, to participate in these processes knowing that they will have the controlling shareholder’s support.

Before the written approval, Mr. McMahon sent two separate letters to the Board in late December expressing the urgency to return to the Company as Executive Chairman and his desire to work with the Board and the management team. After discussions with company officials both before and after mr. McMahon on December 31 believes Mr. McMahon, in accordance with his rights as a controlling shareholder, that the actions announced today are necessary to maximize value for all WWE shareholders.

Mr. McMahon said, “Mrs. Wilson and Mr. Barrios are highly qualified directors whose professional experience positions them well to help the company achieve the best possible results on both initiatives. As former WWE co-presidents and board members, they are well-versed in business dynamics and the operations of the organization, and have assisted the company in previous successful media rights negotiations. I look forward to working closely with Michelle and George again – as well as the company’s remaining directors and management team, who have my full support and confidence. WWE has an exceptional management team and I do not intend for my return to affect their roles, duties or responsibilities in any way.”

In addition to the changes to WWE’s Board of Directors, Mr. McMahon’s written approval also includes certain amendments to the Company’s Bylaws to ensure that WWE’s corporate governance continues to properly enable and support shareholder rights. These changes will be reflected in an email from Mr. McMahon and a Form 8-K that will be filed by the company in the next few days.

No guarantees can be given as to the outcome or timing of the review process. Mr. McMahon does not intend to comment further until the process is completed or until Mr. McMahon has otherwise determined that further disclosure is appropriate or necessary.

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