Shares of World Wrestling Entertainment Inc (NYSE: WWE) went up 20% on Friday after the media company reinstated former CEO Vince McMahon to the Board.
McMahon to pursue a possible sale
McMahon retired last year after allegations of sexual misconduct but retained significant influence on the entertainment company as its majority shareholder.
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Returning as the executive chairman, McMahon now plans on chasing a possible sale.
Only way for WWE to fully capitalise on this opportunity is for me to return as executive chairman and support the management team in negotiations for our media rights and to combine that with a review of strategic alternatives.
World Wresting Entertainment Inc attributes most of its revenue to selling content rights. McMahon also elected George Barrios and Michelle Wilson (former co-presidents) to the board on Friday.
MKM Partners analysts react to the news
Vince McMahon also removed three board members – Alan M. Wexler, Jeffrey Speed, and JoEllen Lyons Dillon today. Additionally, Manjit Singh and Ignace Lahoud chose to resign as board members upon his return, effective Friday.
Reacting to the stock market news, MKM Partners said in a note this morning that it made “a lot of sense” for the Stamford-headquartered firm to explore an immediate sale. Analysts at the equity research firm currently rate the WWE stock a “buy”.
Their price target of $90 a share represents another 5.0% upside. In November, World Wrestling Entertainment reported its third-quarter results that came in well above the Street estimates.
WWE stock has rallied about 30% since December 28th.
Source: https://invezz.com/news/2023/01/06/wwe-stock-rallies-on-vince-mcmahon-return/