WWE’s Co-Presidents left the company and some very bad financial news soon followed. The stock took a huge dive and investors are nervous.
Bloomberg reports that WWE’s recent financial crisis has cost the company over $1 billion in market value. They took a 28% drop in their stock on Friday and this new report probably won’t help matters.
Loop Capital’s Alan Gould said that WWE now has “diminished confidence,” which is a shame since Wall Street once loved the pro wrestling brand. Gould also said that Vince McMahon “was not pleased with the results of the international TV deals. He added his speculation that McMahon “wanted to reinvest more of the growing cash flow back into the business.”
Another bad review of WWE’s financial outlook came from LightShed Partners analyst Brandon Ross who said:
“Television ratings have crumbled, while engagement metrics across the company’s other business units have followed linear TV ratings down. Fans have continuously complained about the quality of the company’s content.”
MKM Partners’ Eric Handler did comment saying, “A change in the C-Suite does not necessarily mean more bad news is coming.” So, it’s not guaranteed to be bad with more terrible news on the horizon.
WWE has been through some troubles in the past with the steroid scandal and even the Chris Benoit tragedy that pointed a light on concussions. It appears we could be nearing another noteworthy moment in WWE corporate history.