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Vince McMahon clotheslines stake in WWE for multi-million-dollar pay out
Posted on Wednesday, 25 March 2020 14:29
Chief executive (CEO) and chairman Vincent McMahon issued a statement with US regulators announcing its plan to knock out 3.50 million shares in World Wrestling Entertainment (WWE). Bloomberg cited people familiar with the matter as saying the head of the firm is working with Morgan Stanley on the disposal, which is lining up buyers for the 4.5 per cent stake. McMahon could price the shares at between USD 37.75 to USD 38.25 apiece, according to the sources, giving a maximum value of USD 133.88 million. WWE’s stock price dropped 7.9 per cent to USD 35.95 at 09:46 today, giving the business a market capitalisation of USD 2.78 billion. The company has suffered due to the continued coronavirus pandemic that is spreading around the world. It has had to cancel live events in order to stop the spread and keep people isolated from each other, with McMahon’s XFL Football League also cancelled for the remainder of its season. According to the filing, the CEO is working with an undisclosed lender to provide current liquidity and he is looking to settle the deal in cash and retain full ownership of pledged shares. McMahon owns 25.20 million shares, representing 70.5 per cent of the voting power. WWE is an integrated media organisation and a recognised leader in global entertainment; its portfolio of businesses create and deliver original content 52 weeks a year to a global audience. The wrestling programme reaches 800.00 million homes worldwide in 28 languages and is available in 180 countries including the US, India, Mexico, Singapore, Dubai and Japan, among other locations. In the year ended 31st December 2019, WWE posted net revenue of USD 960.40 million, a 3.2 per cent increase on USD 930.20 million in the previous 12 months. Operating income before depreciation and amortisation rose slightly to USD 180.00 million in 2019 (2018: USD 178.90 million). © Zephus Ltd