Vince McMahon’s return to WWE as the Executive Chairman made it clear that he planned on selling the company to the highest bidder. After almost three months of going back and forth between potential buyers, WWE was sold to UFC’s parent company Endeavor. Now it seems WWE’s stock suffered a drop following its sale to Endeavor.
Endeavor will combine WWE with UFC to form a new company valued at $21 billion. Endeavor will own 51% of the company while WWE stockholders own 49%. That particular company will trade on the New York Stock Exchange as TKO.
According to a report Bloomberg, news of Endeavor’s acquisition of WWE led to a significant drop in WWE’s stock. This turned out to be a cause of concern for WWE’s investors, as the drop in stock price is more significant than it has been in the past two years.
On Friday, WWE’s stock closed at a value of 91.26. However, when it opened today – it had fallen to 85.60. For the time being, the stock is trading at 86.50, which is still lower than the initial closing price on Friday.
As for Endeavor, their stock closed at 23.93 on Friday. When the market opened today, the stock jumped to 24.49. However, the stock is currently trading at 22.30, which is a significant decrease from its initial opening value.
The announcement of the sale comes after reports broke on Sunday regarding a possible sale of WWE. Vince McMahon even shared a message with his staff following the announcement of the new partnership. We will have to wait and see how WWE and UFC’s new partnership will fare in the coming months.
What impact do you think the WWE-UFC merger will have on pro wrestling? Are you surprised by WWE’s stock dropping? Sound off in the comments!