Vince McMahon is back at WWE to ensure a smooth sale process. Here’s who might want to buy it

Vince McMahon is back world Wrestling Entertainment Board of Directors to facilitate potential sale negotiations prior to the renewal of the company’s media rights.

The notion of selling WWE is not new. CNBC reportedt didn’t look like a sales target in April And that it only appeared more attractive in July following a sexual misconduct scandal. The argument is fairly straightforward: WWE is valuable intellectual property.

Ownership of IP allows streaming services to exclusively provide content without the hassle of winning licensing rights at auction every few years. WWE also has value to offer to the merchandising and theme park businesses.

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

If a deal does happen, it is likely in the next three to six months, said the people, who asked not to be named because the discussions are private. WWE TV rights plans to talk to potential buyers before deciding on renewal agreements.

The former CEO and chairman is 77 years old and is the controlling shareholder of WWE. he Investigation found that he had paid Nearly $15 million to four women over the age of 16 To suppress claims of alleged sexual misconduct and infidelity. Returning to the board will assure potential buyers that it supports the details of any transaction.

“My return will allow WWE, as well as the counterparties to any transaction, to engage in these processes knowing that they will have the support of the controlling shareholder,” McMahon said in a statement on Thursday.

McMahon’s return does not affect the current leadership. McMahon’s daughter, Stephanie, and former CAA agent Nick Khan are co-CEOs. But it is unclear what type of role, if any, McMahon would seek in WWE if he sold the company. WWE has told investors that McMahon’s role at the company was essential to “our ability to create popular characters and creative storytelling”. Currently, McMahon does not have a formal say in the creative direction of the company.

It is not known whether a buyer would be comfortable with McMahon taking a practical role in the company. But WWE is McMahon’s life’s work. It is possible that the sale may take place only with at least some conditions.

WWE’s market capitalization exceeds $6 billion after nearly 17 years of growth, per cent on Friday, buoyed by increased sales speculation.

There are three categories of potential buyers for WWE – legacy media companies, streamers and entertainment holding companies. Here are those that may be of interest.

comcast, which owns NBCUniversal, is a possible fit as a buyer of WWE. McMahon’s company already has an exclusive streaming deal with Comcast’s streaming service, Peacock, and a cable TV deal with NBCUniversal’s USA Network. Comcast has a market capitalization of over $160 billion and could easily afford the company – especially with a $9 billion (or more) check Coming from Disney by January 2024 for a 33% stake in Hulu.

Comcast could permanently shut down WWE without paying an upcoming rights renewal increase and use the company’s IP for theme parks, movies and other spinoff series.

Still, Comcast CEO Brian Roberts said in October “The bar is the highest in terms of M&A” And has repeatedly said the company is in no rush to make acquisitions.

Returning CEO Bob Iger Wants to Make a Spectacular Acquisition as He Takes Back the Throne disney, WWE fits Disney the same way it fits Comcast. It’ll boost Disney’s streaming ambitions (perhaps ESPN+), it’ll support the linear network business, and it’ll drive some growth in sales and the theme park businesses.

Comcast didn’t want Disney to go with Fox in 2019 and Topping Iger’s initial bid raised the price by tens of billions. Could Iger see WWE as the next IP battle between Disney and its rival Comcast?

netflix been away from sports and other live events for a long time, but It has recently become open to the idea of ​​owning a league outright or taking an ownership stake., Owning a sports league would give Netflix the ability to produce video games and spinoff series without friction. Following Netflix’s success with its Formula 1 “Drive to Survive” documentary series, co-CEO Reed Hastings is confident that certain sporting properties will resonate with Netflix’s vast global audience. But Netflix doesn’t own Formula 1, which limits its future options.

Acquiring WWE or another sports league would be a way for Zaslav to offer live entertainment without renting content, similar to what Zaslav thought.

Co-CEO Ted Sarandos said, “We haven’t seen a path to profit for renting big games.” Last month at the UBS Global TMT conference. “We’re not anti-sports, we’re just pro-profit.”

AttemptSuperAgent, run by Ari Emmanuel, may add WWE to its stable of assets later Agreed to buy 100% of UFC in 2021,

Emanuel purchased the UFC to expand the talent agency business to live events. WME-IMG, now a part of Endeavor Only, represents many UFC athletes – as well as WWE Superstars. The UFC deal has been successful for Endeavor, which in 2016 paid nearly seven times its 2016 revenue of $600 million. UFC Generate over $1 billion in revenue by 2022,

Endeavor has an enterprise value of around $11 billion which makes WWE a major blow to the company. The company’s relatively small balance sheet may prevent Endeavor from winning a bidding war against the media giants. But McMahon’s towering personality may fit in with Brutal Emanuel and UFC President Dana White.

Selling to a third party would also allow WWE to increase the renewal of the rights every few years. This may or may not be positive for the long-term future of the company as the media distribution ecosystem changes.

While Endeavor owns the UFC, Liberty’s Formula One Group Formula 1 boss. John Malone, Liberty’s controlling shareholder, and CEO Greg Maffei, along with Formula 1 CEO Stefano Domenicelli, have figured out how to market the car racing league globally, embracing American culture after decades of obscurity. Including breaking.

Malone and Maffei have an extensive track record of maximizing media valuation and acquiring media assets of less than $10 billion, including Formula 1, Sirius XM and Pandora. The global success of Formula 1 may provide a roadmap for future WWE strategy.

Disclosure: Comcast is owned by NBCUniversal, the parent company of CNBC.

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