John from Cincinnati Posted January 5, 2023 Share Posted January 5, 2023 (edited) Succession music mixed with theme from Jaws Quote Vince McMahon, the majority owner and former chief executive of World Wrestling Entertainment Inc., WWE 2.26%increase; green up pointing triangle plans to return to the company following his retirement last year amid a sexual-harassment scandal to pursue a sale of the business, according to people familiar with the matter. Mr. McMahon, who has majority voting power through his ownership of WWE’s Class-B stock, has told the company that he is electing himself and two former co-presidents and directors, Michelle Wilson and George Barrios, to the board, the people said. The move to reinstate Mr. McMahon, which the board previously rebuffed, and the others will require three current directors to vacate their positions. Mr. McMahon, whose abrupt departure in July 2022 followed disclosures by The Wall Street Journal of multiple payouts to women who had alleged sexual misconduct and infidelity, expects he will be able to assume the role of executive chairman, though he would need board approval for that, the people said. It isn’t clear where that would leave his daughter, Stephanie McMahon. After his departure, she took over as chairwoman and co-CEO alongside Nick Khan, the company’s former president. The 77-year-old sent a letter to WWE’s board in late December detailing his desire to return to the company he ran for four decades, to help spearhead a strategic-review process, the people said. Mr. McMahon believes there is a narrow window to kick off a sales process because WWE’s media rights—including for its flagship programs “Raw” and “SmackDown”—are about to be renegotiated, according to the people. Mr. McMahon believes the media landscape is evolving quickly and more companies are looking to own the intellectual property they use on their streaming platforms, making WWE an attractive takeover target, the people said. WWE, which generates most of its revenue from selling content rights, posted its first year of over $1 billion in revenue in 2021. The company currently has a market value of just over $5 billion. The board responded last month in a letter to Mr. McMahon that it was prepared to initiate a review process and would welcome working with him on it. However, it said it unanimously agreed that Mr. McMahon’s return to the business wouldn’t be in shareholders’ best interest, according to people familiar with the letters. The board also asked Mr. McMahon to confirm his commitment to repay expenses incurred by WWE related to an investigation of the allegations and requested that he agree not to return to the company during government probes of the matter, the people said. Mr. McMahon said in response that he remains willing to continue working to complete any reimbursement for reasonable expenses related to the investigation, to the extent they aren’t covered by insurance, but he declined to agree to not return to the company. He has communicated to the board that unless he has direct involvement as executive chairman from the outset of a strategic review, he won’t support or approve any media-rights deal or sale, the people said. Mr. McMahon retired as WWE chief executive and chairman in July amid a board investigation of sexual-misconduct claims against him. The Journal reported that he had agreed to pay more than $12 million in secret settlements since 2006 to his accusers. The Securities and Exchange Commission and federal prosecutors launched inquiries into the payments. WWE later disclosed additional payments in 2007 and 2009 totaling $5 million that it said were unrelated to the allegations of misconduct that led to its internal investigation. WWE’s board ultimately found that the payments, though made by Mr. McMahon personally, should have been booked as WWE expenses because they benefited the company. Mr. McMahon had told people that he intended to make a comeback at WWE, the Journal reported last month. He said that he received bad advice from people close to him last year to step down, according to the people familiar with his comments. Joe Palazzolo and Ted Mann contributed to this article. https://www.wsj.com/articles/vince-mcmahon-plots-return-to-wwe-11672952709 Edited January 5, 2023 by John from Cincinnati 2 1 6 3 Link to comment Share on other sites More sharing options...
Zimbra Posted January 5, 2023 Share Posted January 5, 2023 (edited) E: John too fast Edited January 5, 2023 by Zimbra Link to comment Share on other sites More sharing options...
Zimbra Posted January 5, 2023 Share Posted January 5, 2023 Seems like a bad idea to do something that will almost certainly negatively affect the value of your company right before you try to sell your company, but I guess that's why I'm not a big-shot CEO. 3 Link to comment Share on other sites More sharing options...
John from Cincinnati Posted January 5, 2023 Author Share Posted January 5, 2023 Just now, Zimbra said: Seems like a bad idea to do something that will almost certainly negatively affect the value of your company right before you try to sell your company, but I guess that's why I'm not a big-shot CEO. It was either this or take up shitposting on Twitter. 1 2 Link to comment Share on other sites More sharing options...
RonL21 Posted January 5, 2023 Share Posted January 5, 2023 (edited) I always assumed when Vince sold the XFL to that investor group led by the Rock, that that's probably going to be the person who he would sell his WWE shares to. Edited January 5, 2023 by RonL21 Link to comment Share on other sites More sharing options...
Greggulator Posted January 5, 2023 Share Posted January 5, 2023 1 minute ago, Zimbra said: Seems like a bad idea to do something that will almost certainly negatively affect the value of your company right before you try to sell your company, but I guess that's why I'm not a big-shot CEO. As a financial journalist, the one thing I've learned is that reactions to news like this are fully unpredictable. It's also really likely the company's biggest shareholders and a lot of analysts already caught wind of this. The WSJ also made mention of it in its last article, but now it spelled out the details. Vince also always had a massive controlling stake. There's plenty of evidence to suggest the market already priced all of this into how WWE shares are being valued. There's no telling yet about how this could effect the actual TV product. Vince might want to focus solely on selling the company to whoever and leave the creative side of things alone. He might not. Who knows. 1 Link to comment Share on other sites More sharing options...
Zimbra Posted January 5, 2023 Share Posted January 5, 2023 1 minute ago, RonL21 said: I always assumed when Vince sold the XFL to that investor group led by the Rock, that that's probably who would be the favorite to be the person who he would sell his shares to. I'm not sure they have the pockets for it. WWE is going to sell for at least a couple orders of magnitude more than the XFL did. Link to comment Share on other sites More sharing options...
dragonzombie Posted January 5, 2023 Share Posted January 5, 2023 (edited) Sell it to Fox, if they're interested. They're gonna need more content on their networks. Vince still needs people on the WWE board to agree to bring him back on, the article above wrote he was previously rebuffed. He can be rejected again. Edited January 5, 2023 by Red King Link to comment Share on other sites More sharing options...
John from Cincinnati Posted January 5, 2023 Author Share Posted January 5, 2023 Quote Submits written consent to WWE Board electing himself and Company veterans George Barrios and Michelle Wilson as Directors Actions are necessary to ensure McMahon's full participation in upcoming media rights negotiations and review of strategic alternatives GREENWICH, Conn., Jan. 5, 2023 /PRNewswire/ -- Vince McMahon, the founder and controlling shareholder of World Wrestling Entertainment Inc. ("WWE" or the "Company") (NYSE: WWE), announced today that he has taken necessary actions to position the Company to capitalize on a unique opportunity to maximize long-term value for all WWE shareholders. The actions, communicated to WWE's Board of Directors today via written consent, include the election to the Board of Mr. McMahon, as well as Michelle Wilson and George Barrios – former WWE Co-Presidents and Board members, and currently the Co-Founders and Co-CEOs of Isos Capital Management – and the requisite removal from the Board of three directors. Mr. McMahon expects to assume the role of Executive Chairman of the Board. Mr. McMahon's new role will enable unified decision making through the Company's upcoming media rights negotiations and a parallel full review of the Company's strategic alternatives, which Mr. McMahon believes is the right course of action and in the best interests of WWE and WWE shareholders amidst the current dynamics in the media and entertainment industry. As Mr. McMahon has communicated to the Board, he believes there is a narrow window of opportunity to create significant value for all shareholders and that to do so, the strategic alternatives review must occur in tandem with the media rights negotiations. He also expressed to the Board that he believes these two initiatives require Mr. McMahon's direct participation, leadership, and support as controlling shareholder. "WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms," said Mr. McMahon. "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 the negotiations for our media rights and to combine that with a review of strategic alternatives. My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder." Prior to delivering written consent, Mr. McMahon sent two separate letters to the Board in late December in which he expressed the urgency of his return to the Company as Executive Chairman and his desire to work collaboratively with the Board and management team. Following conversations with representatives of the Company both before and after Mr. McMahon's most recent letter on December 31, Mr. McMahon determined, consistent with his rights as controlling shareholder, that the steps announced today are necessary to maximize value for all WWE shareholders. Mr. McMahon said, "Ms. Wilson and Mr. Barrios are highly qualified directors whose professional experience positions them well to help the Company achieve the best possible outcomes in both initiatives. As former WWE Co-Presidents and Board members, they are intimately familiar with industry dynamics and the organization's operations and have helped guide the Company through past successful media rights negotiations. I look forward to working closely again with Michelle and George – as well as the Company's remaining directors and management team, who have my full support and confidence. WWE has an exceptional management team in place, and I do not intend for my return to have any impact on their roles, duties, or responsibilities." In conjunction with the changes to WWE's Board, Mr. McMahon's written consent also includes certain amendments to the Company's bylaws to ensure that WWE's corporate governance continues to properly enable and support shareholder rights. These changes will be detailed in a Schedule 13D amendment to be filed by Mr. McMahon and a Form 8-K to be filed by the Company in the coming days. No assurances can be given regarding the outcome or timing of the review process. Mr. McMahon does not intend to comment further until the process has concluded or Mr. McMahon has otherwise determined that further disclosure is appropriate or required. Michelle Wilson Biography Ms. Wilson is Co-Founder and Co-CEO of Isos Capital Management. She is a leading sports and entertainment c-suite executive and, prior to founding Isos with Mr. Barrios, most recently served as Co-President and Board Member of WWE until January 2020. In 2018, Forbes named Ms. Wilson one of the 10 Most Powerful Women in Sports. She also was featured on the Adweek 50 list, which highlights the leading executives in Media, Marketing and Technology, and named one of Sports Illustrated's 10 Most Influential Women in Sports. She joined WWE in 2009 and prior to her appointment as Co-President, served as Chief Revenue and Marketing Officer. Previously, Michelle served as the Chief Marketing Officer of the United States Tennis Association, oversaw all marketing efforts for the launch of the XFL, a partnership between WWE and NBC, and held consumer products and brand management positions at the NBA and Nabisco, respectively. She received her MBA from Harvard Business School and currently serves on the Boards of Bowlero Corporation and Turtle Beach Corporation. George Barrios Biography Mr. Barrios serves as Isos Capital Management's Co-Founder and Co-CEO. He is an award-winning c-suite executive and most recently served as Co-President and Board Member of WWE until January 2020. In 2017, Institutional Investor ranked George among the Top 3 CFOs in the Media Industry as part of its All-America Executive team rankings. He joined WWE in 2008 as its Chief Strategy and Financial Officer. Previously, he held leadership roles in finance, strategy and operations at the New York Times, Praxair, Time Warner and HBO. He received his MBA from the University of Connecticut School of Business and currently serves as the National Board Chair of the Make-A-Wish Foundation. Kirkland & Ellis is serving as legal counsel to Mr. McMahon. Forward Looking Statements This press release contains forward-looking statements pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Forward looking statements include statements regarding Mr. McMahon's return to the Board as Executive Chairman, the impact of Mr. McMahon, Ms. Wilson and Mr. Barrios as members of the Board, the timing and success of the Company's media rights negotiations and the Company's review of strategic alternatives. In addition, the words "may," "will," "could," "anticipate," "plan," "continue," "project," "intend," "estimate," "believe," "expect," "outlook," "target," "goal," "guidance" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These statements relate to future possible events, as well as plans, objectives, expectations and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from future results expressed or implied by such forward-looking statements. These forward-looking statements are subject to uncertainties relating to, without limitation, the matters referred to in this release, the complexity of the Company's rights agreements across distribution mechanisms and geographical areas and the Company's review of strategic alternatives. Forward-looking statements speak only as of the date made and are subject to change without any obligation to update or revise them. Undue reliance should not be placed on these statements. https://www.prnewswire.com/news-releases/vince-mcmahon-takes-actions-in-support-of-plan-for-wwe-to-undertake-a-review-of-strategic-alternatives-and-capture-unique-opportunity-to-maximize-long-term-value-for-all-shareholders-301715016.html 1 Link to comment Share on other sites More sharing options...
For Great Justice Posted January 5, 2023 Share Posted January 5, 2023 Good to see we’re now nearing the end of Season 3 where Paul…er, Tom sells out Shiv to elect Vince back to the board Link to comment Share on other sites More sharing options...
Raziel Posted January 5, 2023 Share Posted January 5, 2023 31 minutes ago, John from Cincinnati said: https://www.prnewswire.com/news-releases/vince-mcmahon-takes-actions-in-support-of-plan-for-wwe-to-undertake-a-review-of-strategic-alternatives-and-capture-unique-opportunity-to-maximize-long-term-value-for-all-shareholders-301715016.html 2 Link to comment Share on other sites More sharing options...
TheVileOne Posted January 5, 2023 Share Posted January 5, 2023 Maybe Tony Khan will buy WWE. 2 1 Link to comment Share on other sites More sharing options...
For Great Justice Posted January 5, 2023 Share Posted January 5, 2023 1 minute ago, TheVileOne said: Maybe Tony Khan will buy WWE. WWE’s market cap is 5 billion. The Khans are worth 12 billion… Hell yeah let’s call LBO Lio, get levered up and do this thing. Someone make a reservation at Club La Vela. Link to comment Share on other sites More sharing options...
TheVileOne Posted January 5, 2023 Share Posted January 5, 2023 (edited) 2 minutes ago, For Great Justice said: WWE’s market cap is 5 billion. The Khans are worth 12 billion… Hell yeah let’s call LBO Lio, get levered up and do this thing. Someone make a reservation at Club La Vela. So you're saying they'd still have seven billion left? Technically, still a billionaire. #Maths Edited January 5, 2023 by TheVileOne Link to comment Share on other sites More sharing options...
dragonzombie Posted January 5, 2023 Share Posted January 5, 2023 Sell it to the Rock, the XWE is born pal. 1 Link to comment Share on other sites More sharing options...
Elsalvajeloco Posted January 5, 2023 Share Posted January 5, 2023 12 minutes ago, TheVileOne said: Maybe Tony Khan will buy WWE. 7 minutes ago, TheVileOne said: So you're saying they'd still have seven billion left? Technically, still a billionaire. #Maths I can legit see an ownership group, but not just the Khans themselves. Unless another wrestling boom is about to sweep the U.S., owning three wrestling companies is overkill especially when 1 isn't profitable with no TV deal, one is still trying to break even over the next few years, and the other one is using their TV and media rights deals to subsidize everything else. If they did, ROH is getting offloaded or outright dead. 1 Link to comment Share on other sites More sharing options...
TheVileOne Posted January 5, 2023 Share Posted January 5, 2023 1 minute ago, Elsalvajeloco said: I can legit see an ownership group, but not just the Khans themselves. Unless another wrestling boom is about to sweep the U.S., owning three wrestling companies is overkill especially when 1 isn't profitable with no TV deal, one is still trying to break even over the next few years, and the other one is using their TV and media rights deals to subsidize everything else. Ownership group consisting of an elite dream team: The Rock, Elon Musk, Freddie Prinze Jr., and The Paul Brothers 1 1 Link to comment Share on other sites More sharing options...
Just Dave Posted January 5, 2023 Share Posted January 5, 2023 Tough day to be William Regal… 1 2 Link to comment Share on other sites More sharing options...
TheVileOne Posted January 5, 2023 Share Posted January 5, 2023 Another potential name for ownership group: Shane McMahon 3 Link to comment Share on other sites More sharing options...
John from Cincinnati Posted January 5, 2023 Author Share Posted January 5, 2023 1 minute ago, just drew said: Tough day to be William Regal… Maybe he can ask to be let go so he can spend the twilight of his career working with his other son, Bryan Danielson. 11 Link to comment Share on other sites More sharing options...
Elsalvajeloco Posted January 5, 2023 Share Posted January 5, 2023 8 minutes ago, TheVileOne said: Another potential name for ownership group: Shane McMahon If Dana White gets fired from his figurehead job with the UFC & **checks notes** the Power Slap League and manages to somehow parlay that into him using whatever money he has left from the UFC sale and from buying his children expensive foreign cars to buy a stake in the WWE ownership group, this means the entirety of sports and life in general is a work. 2 3 Link to comment Share on other sites More sharing options...
GuerrillaMonsoon Posted January 5, 2023 Share Posted January 5, 2023 (edited) Remember that angle in 2009 when Vince sold WWE to Donald Trump? Yeah that's going to happen again IRL. Leveraged against ridiculous valuations of Mar-a-lago. All squash matches of Ron DeSantis parodies, all the time. Don Jr takes over Raw, and immediately the coked up boss's kid who can't land a punch becomes a headline talent, Ivanka and the doofus son-in-law takes over Smackdown, Tiffany gets NXT, Eric replaces Kevin Dunn. Literally nothing changes. Edited January 5, 2023 by GuerrillaMonsoon 2 5 Link to comment Share on other sites More sharing options...
Dog Posted January 5, 2023 Share Posted January 5, 2023 (edited) So Vince is hiring back the two people he replaced with Nick Khan? Edited January 5, 2023 by Dog 4 Link to comment Share on other sites More sharing options...
TheVileOne Posted January 5, 2023 Share Posted January 5, 2023 6 minutes ago, Dog said: So Vince is hiring back the two people he replaced with Nick Khan? He literally ousted them like Patterson and Brisco three years ago. 1 Link to comment Share on other sites More sharing options...
John E. Dynamite Posted January 5, 2023 Share Posted January 5, 2023 Vince really should have announced this between the co-main and main of Wrestle Kingdom. Too bad Bushiroad spent all their scratch on Sasha ;( 2 Link to comment Share on other sites More sharing options...
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