WWE's High Stock Prices Could Make Company A Target For Acquisition
Despite major changes behind the scenes in WWE and the biggest name attached to the company leaving amidst a scandalous investigation, CNBC featured a piece today on the WWE stock hitting a 52-week high and notes the company has become quite attractive for acquisition before the next rounds of TV deals are set to take place with FOX and Comcast.
WWE is looking pretty good to investors and the stock numbers are way up compared to a market that has taken a dip overall. The fallout from Vince McMahon's departure has not affected WWE in a negative way. In fact, with Triple H now running things creatively and with Stephanie McMahon and Nick Khan acting as Co-CEOs, the stock is up and the timing is ideal since WWE is not far off from negotiating two new television deals with their current respective networks.
The CNBC article states:"The company’s stock is up more than 50% in 2022, hitting a 52-week high Monday, and trading at levels it hasn’t seen since summer 2019. The S&P 500, by comparison, is down more than 20% thisyear." They also note, "The stock’s strong performance this year occurred WWE’s live wrestling-events business came roaring back after months of Covid restrictions and the company increasingly became the subject of sale talks. The stock continued to do well after the company’s longtime leader and biggest shareholder, Vince McMahon, retired from the company over the summer in a cloud of scandal."
Related: WWE Finally Addressing Triple H's Role In Company On Screen
Makes Sense WWE Would Be An Attractive Buy Right Now
With two $1 billion television network deals already signed, the next deals could be far more lucrative if investors and networks see the increase in ratings, stock value and revenue as a real plus. If WWE is hitting it out of the park and with the Royal Rumble and WrestleMania right around the corner, stock values could continue to rise with television networks wanting a piece of the WWE pie.
Shares of the company were effectively flat Monday after hitting $76.90. WWE’s market capitalization is over $5.6 billion, notes the article.
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