Who would buy WWE, as McMahon returns to board to pursue sale

Vince McMahon is back world wrestling entertainment The Board facilitates potential sale negotiations prior to renewal of the company’s media rights.

The concept of WWE sales is nothing new. CNBC reported that he appeared to be for sale in April, only to appear more attractive after a sexual misconduct scandal hit in July. The reason is simple and clear. WWE is valuable intellectual property.

Owning IP allows streaming services to offer content exclusively without the hassle of winning license rights at auction every few years. WWE also has value to offer in its merchandising and theme park business.

WWE hired JP Morgan to help advise the company on a potential sale, according to people familiar with the matter. JP Morgan declined to comment. A WWE spokesperson could not be reached for comment.

If a deal is reached, it is likely within the next three to six months, said the people, who asked not to be identified because the information is private. WWE plans to speak with potential buyers before making any decisions about renewing the TV rights deal.

McMahon’s return should help the sales process run smoothly, but there can still be problems.

The former CEO and chairman is 77 years old and a controlling shareholder of WWE. after he resigned An investigation found that he paid nearly $15 million to four women over 16 years to quell allegations of sexual misconduct and infidelity. A return to the board gives potential buyers confidence that he stands by the details of the deal.

comcastOwning NBCUniversal could be a good WWE buyer. McMahon’s company has an exclusive streaming deal with Comcast’s streaming service, his Peacock, and a cable TV deal with NBCUniversal’s his USA Network. Comcast’s market cap exceeds his $160 billion, especially since he’ll receive his $9 billion (or more) check from Disney in January 2024 for his 33% stake in Hulu. You can easily afford the company.

Still, Comcast CEO Brian Roberts said in October: “It’s the best hurdle ever when it comes to M&A.” The company has repeatedly said it is in no rush to make an acquisition.

A returning CEO, Bob Iger, may want to make a splashy acquisition as he reclaims the throne. disneyWWE fits Disney as well as Comcast does. It will bolster Disney’s streaming ambitions (probably ESPN+), support its linear network business, and have some impact on its merchandising and theme park business.

netflix I’ve avoided sports and other live events for a long time, Recently I’ve been open to the idea of ​​fully owning or taking ownership of the leagueOwning a sports league will allow Netflix to create video games and spin-off series without friction. Netflix has found success with its Formula 1 ‘Drive to Survive’ documentary series, and co-CEO Reed Hastings is confident his sports specific property will resonate with his Netflix’s huge global audience. I’m here. But Netflix doesn’t own Formula 1, which limits his options for the future.

Similar to Zaslav’s thinking, buying WWE and other sports leagues could be a way to offer live entertainment without renting content.

Co-CEO Ted Sarandos said, “We don’t see a profit path from renting the big sports.” At last month’s UBS Global TMT conference. “We are not anti-sport. We are just for profit.”

effortrun by super agent Ali Emmanuel, was then able to add WWE to its asset stability Agreed to acquire 100% of UFC in 2021.

Emmanuel acquired UFC, expanding the talent agency’s business to live events. WME-IMG is now part of Endeavor and represents many UFC athletes and his WWE Superstars. The UFC deal was a success for Endeavor, paying out nearly seven times his $600 million earnings in 2016. UFC Generated over $1 billion in revenue by 2022.

Endeavor is only worth about $11 billion, so WWE has a lot of clout in the company. Due to the company’s relatively small balance sheet, Endeavor won’t be able to win a bidding war with the media giants. However, McMahon’s prodigious personality might suit cocky Emmanuel and UFC president Dana White.

Selling to third parties also allows WWE to increase rights renewal every few years. As the media distribution ecosystem changes, it may or may not be positive for the company’s long-term future.

Endeavor owns the UFC, Liberty’s Formula One Group owns Formula 1. Liberty’s controlling shareholder John Malone and his CEO Greg Maffei, along with Formula 1’s Stefano Domenicali, have come up with a way to market the car racing league globally.