Vince McMahon Reportedly Seeks $9 Billion For WWE

Topline

World Wrestling Entertainment’s controversial billionaire chairman Vince McMahon has received multiple offers to take the wrestling company private in a deal worth as much as $9 billion, Bloomberg reported Friday, a price tag that one analyst says comes as a mild disappointment.

Key Facts

The $9 billion valuation represents a 36% premium on WWE’s $6.6 billion market capitalization Friday.

Still, “the ask is slightly lower than what investors thought,” LightShed analyst Brandon Ross wrote in an email to Forbes, adding he was surprised McMahon “put out an ask” in the first place.

WWE shares slipped nearly 2% following the Bloomberg report, paring earlier gains, though the stock still rose o.7% Friday.

WWE didn’t immediately respond to a request for comment, though the company said last month it was exploring “strategic alternatives…to maximize long-term value for shareholders,” thinly veiled language indicating a sale may be on the table.

Key Background

The stock is up 23% since McMahon announced his return to the company January 5 after a seven-month absence due to a sexual misconduct scandal after it was revealed the billionaire paid millions in “hush money” to his accusers. UFC parent Endeavor and the Saudi Arabian sovereign wealth fund have each been linked to a potential acquisition of WWE. A $9 billion sale price would put WWE’s price-to-earnings ratio, a commonly cited company valuation metric, at about 50, far higher than S&P 500 companies’ average price-to-earnings ratio of 21.6.

Forbes Valuation

McMahon is worth $3 billion, according to Forbes’ calculations, up $41 million Friday thanks to WWE stock’s gain.

Big Number

$1.3 billion. That was WWE’s revenue in 2022, roughly half of which came from media rights fees. The company’s television deal expires in 2024.

Further Reading

WWE Shares Are Up 23% Since Vince McMahon’s Return—Despite Slide Following Saudi Sale Rumors (Forbes)