Eric Bischoff is the new Executive Director of WWE’s SmackDown Live product and Paul Heyman is on RAW. However the reasons why WWE is making such a dramatic creative change might be a matter of question.
Dave Meltzer says that WWE is making this change for stockholders’ sake. It is reported that since WWE was at almost $100 per stock unit in April and the stock has plummeted to around $70 that there is cause for concern. Therefore, making this creative change will bring in two names they can show investors because people know who Paul Heyman and Eric Bischoff are.
However, we have spoken to friends in the financial industry and they told us that a ton of companies took a hit at around the same time WWE did. It wasn’t just WWE stockholders that lost money. The fact that WWE hasn’t rebounded is another story, but the fact is that stockholders are not dialed in on creative decisions.
The reason the company didn’t rebound is because of the belief that the company was already over valued in the first place. We have been told this is also rumored to be why Vince McMahon, Kevin Dunn, and other WWE executives sold off lot of their shares at over $90.
Our Wall Street connection also expanded on exactly what bringing Eric Bischoff into the company will do in the eyes of those traders on the stock market floor.
“Bringing Eric Bischoff in isn’t going to help the stocks. Most of Wall Street doesn’t even know who Eric Bischoff is. Wall Street isn’t projecting how good storylines will be. They project cash flow and top/botoom lines.”
WWE stockholders and the brokers who handle stock exchanges only care about monetary value. They know that WWE has big television deals and Saudi Arabian money, but the short selling of the stock continues. Stock holders care more about television deals, attendance, merch sales, profits, and loses than storylines than you’d ever imagine.
WWE needed a creative change, but the dwindling ratings are a fraction of what the financial industry looks at in WWE. The company might have considered helping WWE’s stock price when bringing in Bischoff and Heyman, but there were other reasons that had little to do with Wall Street that was concerning WWE.