Vince McMahon attends a press conference to announce that WWE WrestleMania 29 will be held at MetLife Stadium in 2013 at MetLife Stadium on February 16, 2012 in East Rutherford, New Jersey.
Michael N. Todaro | Getty Images
Vince McMahon is returning world Wrestling EntertainmentMonths after retiring from the company over a sexual misconduct scandal.
Shares of the company jumped 10% after hours McMahon’s Thursday announcement,
McMahon, the company’s controlling shareholder, said he had elected himself executive chairman of the company, and he brought in two former WWE co-chairmen and board members, Michelle Wilson and Jorge Barrios.
The board initially rebuffed McMahon’s return attempt with Wilson and Barrios, which would force three current board directors out of their positions, according to The wall street journal,
McMahon said his return was necessary as the company prepared to negotiate media rights and strategic options. WWE, which styles itself as a media company, has been mentioned as a possible acquisition target.
In his announcement, McMahon said, “The only way for WWE to fully capitalize on this opportunity is for me to return as Executive Chairman and support the management team in negotiations for our media rights and to review strategic options.” To join together.” “My return will allow WWE, as well as any transactional counterparties, to engage in these processes knowing that they will have the support of the controlling shareholder.”
A WWE spokesperson did not immediately comment on the matter to CNBC.
McMahon retired last year amid an investigation into payments made by the former CEO in connection with alleged affairs sexual misconduct, Special committee will investigate found McMahon paid four women approximately $15 million over the course of 16 years to hush up allegations of sexual misconduct.
Nevertheless, because McMahon was the largest shareholder of the company, he retained a great deal of power. His daughter, Stephanie McMahon, and former company president Nick Khan became co-CEOs after his retirement. Vince McMahon handed over creative control to his son-in-law, Paul Levesque, a former wrestler better known as Triple H.
“Mr. McMahon can effectively exercise control over our affairs,” the company said in a November regulatory filing.
—CNBC’s Lillian Rizzo contributed to this report.