WWE and UFC’s deal was finalized back in September, as the companies were featured in front of The New York Stock Exchange. Due to this, fans expected a lot of changes to take place and that’s exactly what happened. That being said, WWE has now been hit with a lawsuit over its sale to Endeavor.
On Monday night, it was revealed that Vince McMahon, Paul “Triple H” Levesque, Nick Khan, George Barrios, Michelle Wilson and others were hit with a lawsuit. The legal action stems from WWE’s recent “quick sale” to Endeavor, with the plaintiffs asserting that the transaction was a “sham sales process” crafted to maintain McMahon’s grip on power while extending a favorable deal to Endeavor.
The lawsuit, filed in Delaware on behalf of former WWE investors by the Laborers’ District Council and Contractors’ Pension Fund of Ohio, contends that superior cash offers existed, but opting for any of these would have jeopardized McMahon’s position.
According to The Hollywood Reporter, Vince McMahon sought a deal allowing him to retain leadership, and the merger allegedly concluded at $95.66 per share—below two undisclosed competitive all-cash bids from major institutions with substantial capital access and compelling motives for acquiring WWE.
Former board members assert that WWE’s true value exceeds the $21 billion sale price, emphasizing the company’s failure to secure a budget for UFC’s entire fiscal year, contrary to customary practices in merger agreements.
According to Bloomberg Law, the lawsuit states the sale to Endeavor was an “unfair process led to an unfair price.” The litigants also express dissatisfaction with multi-million dollar payouts to Levesque, Khan, and Frank Riddick III, WWE’s former CFO.
On the day of the merger’s closure, shares stood at $103, but by November 24, they had plummeted to $78.50. We will keep you updated on this ongoing legal battle, as it isn’t the first time WWE has to deal with a lawsuit in recent times.
What do you think of this story? Do you feel the lawsuit holds weight? Let us know in the comments section below!