Vince McMahon no longer a billionaire; Loses $350M; WWE Stock plummets after NBC Deal

[lil steroid meat]

Vince McMahon no longer a billionaire; Loses $350M; WWE Stock plummets after NBC Deal.

http://www.forbes.com/sites/maggiem...rly-50-as-nbcuniversal-deal-fails-to-impress/

http://www.forbes.com/profile/vincent-mcmahon/

How do you see this affecting the direction of the company creatively? Something has to get those ratings up for NBC and generally raise interest in the company to increase and RENEW (early subscriptions end after Summerslam) WWE Network subscriptions.

Personally I see one of two things happening: things start changing faster than they already have, or they go back to what's safe and Cena is champ relatively soon and the "Youth Movement" is slowed. History has shown that they will do the former but who knows?

What do you all think?

 

[JoeyJoeJoe]

They go back to relative safety. The big winners are Cena, Lesnar, and Rock. Sting will probably also leverage it to his benefit. The main person who gets hurt as a result is Triple H, and the burgeoning superstars such as Reigns and Wyatt.

Vince McMahon is a vainglorious individual. He is certain of his own success and abilities, and he trusts his instincts before he trusts other people's counsel. If he is hurting financially, he will recoil from the doling out of trust and responsibility that have highlighted the past couple of years and go right back to what he knows sells.

He knows Cena sells. He knows the Rock sells. He knows Lesnar sells. The price they will ask will justify the return in his mind.

He will disregard his own missteps because ultimately, whatever his missteps, he feels he knows the core business better than anyone, and what's what he will need to do...retreat to his core business.

 

[Jericho91]

Creative wise I have no hope that they'll step up their game. As for John Cena becoming champion its hard to say they'll go that route too quick. He's too busy feuding with Wyatt at the moment. It'd be interesting to see Triple H become the champion. In my opinion that should bring ratings.

 

[resignedknight]

My first reaction was that Joe is probably right, but the fact that they're locked into TV deal may take some of the pressure off to go entirely safe. The only real urgency now is to get Network subscribers. Cena, especially I think, is the one guy who could help with that. In retrospect it may have been a mistake to not have him in the WM main event and used him to get more kiddies to get their parents to subscribe. So I expect Cena to have the strap again soon, but the rest of the card should be largely unaffected.

Part-timers are interesting because they bring fans to big events, but if you're only watching for, say, the Rock, then is there really much incentive to subscribe to the network when you know he won't be around long?

I would love to know the backstage story on this TV deal. I'm only speculating, but it seems like some bigger plans fell apart and NBCU was a contingency they had to go with. The soaring of the stock price and the things WWE officials were saying a couple months ago just don't seem to jive with how it played out.

 

[JJ15776]

This feels like déjà vu...

Just like that report last year that the McMahons had lost however many hundreds of millions of dollars, saying Vince lost $350M is somewhere between extremely misleading and outright blatantly false. Vince McMahon hasn't lost a dime. He bank accounts read the exact same as they did yesterday, plus interest.

I'm not sure why you would think they have to get the ratings up for NBC, considering the deal is now done. That's like saying Miguel Cabrera has to put up better numbers for the Tigers now that he's signed his contract extension. The time to get the ratings up was before the deal was signed, not after. And, let's be honest, people who subscribed to the network are either going to renew or they're not. It's a very small portion of the subscribers who haven't decided if they're going to renew or not, and are basing it on what happens creatively over the next few months.

WWE is smarter than this. Stock prices have never had much effect on the creative direction of the company and they never will. Because the creative direction of the company doesn't have much effect on the stock price. It's the same company in name, but the business side of things and the creative side of things are so separate they might as well be different companies.

 

[lil steroid meat]

This feels like déjà vu...

Just like that report last year that the McMahons had lost however many hundreds of millions of dollars, saying Vince lost $350M is somewhere between extremely misleading and outright blatantly false. Vince McMahon hasn't lost a dime. He bank accounts read the exact same as they did yesterday, plus interest.

I'm not sure why you would think they have to get the ratings up for NBC, considering the deal is now done. That's like saying Miguel Cabrera has to put up better numbers for the Tigers now that he's signed his contract extension. The time to get the ratings up was before the deal was signed, not after. And, let's be honest, people who subscribed to the network are either going to renew or they're not. It's a very small portion of the subscribers who haven't decided if they're going to renew or not, and are basing it on what happens creatively over the next few months.

WWE is smarter than this. Stock prices have never had much effect on the creative direction of the company and they never will. Because the creative direction of the company doesn't have much effect on the stock price. It's the same company in name, but the business side of things and the creative side of things are so separate they might as well be different companies.

I don't know much about finance and all that, but I'm guessing it means his net worth lost $350M on paper. The Forbes number I linked was $350M higher yesterday.

As far as creative and stock having no correlation, I'd disagree. If a hot angle starts and the world is in love with pro wrestling again like in the 80s and late 90s, it will definitely have an effect. On the other side of the spectrum, if they have El Torito hump the ring for three hours, people will tune out and write off the WWE. Granted creative changes are never that extreme, and I see what you're saying in that so-and-so getting pushed or buried doesn't really affect stocks. But a star/angle that gets people on a widespread mainstream level interested again will definitely affect stocks.

 

[THTRobtaylor]

The news of an emergency conference call on Monday is telling... SOMEONE is going in the top brass of WWE and I have a feeling we might see Steph and perhaps Triple H "stood down" from their management roles. Kevin Dunn is pretty much guaranteed to go.

The issue here is how far the problems have gone into the SEC rules and potential breaches. Make no mistake WWE spent a lot of time talking up their TV deal and not only is it down but it's a pitifully low amount compared to what they were talking? What happened? It would seem to be that the other networks in the "bidding" just said no thanks... leaving WWE to go "cap in hand" back to their current home with a derisory "increase". Has the network destroyed WWE? Quite possibly... this is not something that they are going to recover from quickly.

Losing half the companies share value in one day is a catastrophic event in some ways, for all the good done in recent years updating the product, sowing seeds for the future it would appear that something somewhere is seriously wrong in WWE and to be honest it's the old guy in charge who most will look at and his track record. It happened at Apple and Jobs had to step aside...despite being the guy who set the damn thing up... writing might be on the wall for Vince this time.

WBF, XFL, WWE Films, WCW, now the Network... every time Vince steps out of what he knows he seems to blow it. The vision is there but there is always seemingly something in either his execution or he really does believe his own hype that little bit too much. Problem he faces is this time he could end up in serious legal trouble if it's seen that he has misrepresented anything... when it was a private company he could do stuff and take the risk on himself and be the maverick, traded...you just can't.

It's also telling this new company has broken cover as owning stock now... this is clearly who Steph was shipping stock to. Did she realise what might be ahead and decided to "get her nest egg" out early as Shane did? It's a ballsy strategy when your husband is helping to run the company but it's also a pretty good "failsafe" for her, Paul and their kids if it goes wrong, which it appears to be.

At the heart of it WWE has tried to change to much too quick, there is probably some backlash from the PPV carriers and their hedge fund investor types... they don't like they were basically "cut out" and lost a major revenue stream...so they will be gunning for Vince.

The biggest issue Vince faces right now isn't even the investors and this call on Monday as such... it's the talent.

You're already hearing of Batista being angry at being "sold a bill of goods" on this latest return, guys like Jericho balking on a return and of course Punk taking his ball...or perhaps getting wind and getting out much as Steph has been shipping her stock. He's got a talent roster that it seems are not making what they once were but he has avoided telling specificially what they WILL make now...and no real "aces" to bring in who can ignite the business again. There are no more "mega stars" that haven't been milked with a return except Goldberg, who wouldn't do big business and didn't before. A lot of talent will now be seriously worried. Cuts will be coming as usual but perhaps more savage now the company has lost so much value... Suddenly Brock Lesnar is an expensive luxury...that decision to give him the streak could seem very foolish.

WWE does have a strong young roster that are getting over, but they have come in under the good times and are not going to be the "soldiers" a John Cena or Taker were unless the rewards are there. If not you quickly get the Brock from 2002 or Lashley situations all over again...push to the moon but be able to afford to walk... or worse from WWE's perspective more Rock types who after 5 years on the roster don't need WWE at all and can go on to other things. Even Foley's comments about money now seem to matter... if the veterans aren't making their money then it's gonna worry the next "stars" a lot... it could be back to 1994-5 where Hogan had taken so much out that Bret, Shawn, Diesel and the like were doing the same work for peanuts in comparison.

Make no mistake WWE is in DEEP shit right now, no company can shed that much value so quickly and stay the same. This hedge fund are seeking the removal of "the executive management team" That's Vince, Steph, Trips, Dunn, Linda...any and all of them could be culled... Would Vince sacrifice Trips? Of course he would, there's already talk of Vince cutting his legs off on some decisions and thus upsetting talent... this time though I think it'll be Vince who has to go.

Triple H has enough goodwill with the talent and the wrestling side of the company, a track record of success in his areas with revamping NXT to produce cheaper talent to headline shows etc that even if Vince were removed, a new head honcho would perhaps listen to him when it came to the product...even if it meant Steph was not there, which it seems she has been preparing for. If anything this will see a shift back to the core business of wrestling, which is what they have built for.

Could Vince insist someone like Shane comes in to replace him if he is asked to step aside? Shane could buy in as he is cash rich and successful outside WWE, has the contacts in China to help them get into that market and perhaps would be a strong compromise choice. If Vince is gonna step aside and Steph isn't gonna work for these people then Shane might as he has a record of solid business and again respect and knowledge within the company... he also notably walked from his dad...so he's no puppet for Vince.

A lot of this is speculation of course, but the fact that in one month we've gone from talk of buyouts and billion dollar TV deals to SEC investigations, 25% deal increase only and emergency conference calls is a massive sea change. The blood is in the water, if Disney, Universal or whoever were every gonna pounce and buy WWE. It'll happen soon.

 

[endless]

The news of an emergency conference call on Monday is telling... SOMEONE is going in the top brass of WWE and I have a feeling we might see Steph and perhaps Triple H "stood down" from their management roles. Kevin Dunn is pretty much guaranteed to go.

The issue here is how far the problems have gone into the SEC rules and potential breaches. Make no mistake WWE spent a lot of time talking up their TV deal and not only is it down but it's a pitifully low amount compared to what they were talking? What happened? It would seem to be that the other networks in the "bidding" just said no thanks... leaving WWE to go "cap in hand" back to their current home with a derisory "increase". Has the network destroyed WWE? Quite possibly... this is not something that they are going to recover from quickly.

Losing half the companies share value in one day is a catastrophic event in some ways, for all the good done in recent years updating the product, sowing seeds for the future it would appear that something somewhere is seriously wrong in WWE and to be honest it's the old guy in charge who most will look at and his track record.

WBF, XFL, WWE Films, WCW, now the Network... every time Vince steps out of what he knows he seems to blow it. The vision is there but there is always seemingly something in either his execution or he really does believe his own hype that little bit too much. Problem he faces is this time he could end up in serious legal trouble if it's seen that he has misrepresented anything... when it was a private company he could do stuff and take the risk on himself and be the maverick, traded...you just can't.

It's also telling this new company has broken cover as owning stock now... this is clearly who Steph was shipping stock to. Did she realise what might be ahead and decided to "get her nest egg" out early as Shane did? It's a ballsy strategy when your husband is helping to run the company but it's also a pretty good "failsafe" for her, Paul and their kids if it goes wrong, which it appears to be.

At the heart of it WWE has tried to change to much too quick, there is probably some backlash from the PPV carriers and their hedge fund investor types... they don't like they were basically "cut out" and lost a major revenue stream...so they will be gunning for Vince.

The biggest issue Vince faces right now isn't even the investors and this call on Monday as such... it's the talent.

You're already hearing of Batista being angry at being "sold a bill of goods" on this latest return, guys like Jericho balking on a return and of course Punk taking his ball...or perhaps getting wind and getting out much as Steph has been shipping her stock. He's got a talent roster that it seems are not making what they once were but he has avoided telling specificially what they WILL make now...and no real "aces" to bring in who can ignite the business again. There are no more "mega stars" that haven't been milked with a return except Goldberg, who wouldn't do big business and didn't before. A lot of talent will now be seriously worried. Cuts will be coming as usual but perhaps more savage now the company has lost so much value... Suddenly Brock Lesnar is an expensive luxury...that decision to give him the streak could seem very foolish.

WWE does have a strong young roster that are getting over, but they have come in under the good times and are not going to be the "soldiers" a John Cena or Taker were unless the rewards are there. If not you quickly get the Brock from 2002 or Lashley situations all over again...push to the moon but be able to afford to walk... or worse from WWE's perspective more Rock types who after 5 years on the roster don't need WWE at all and can go on to other things. Even Foley's comments about money now seem to matter... if the veterans aren't making their money then it's gonna worry the next "stars" a lot... it could be back to 1994-5 where Hogan had taken so much out that Bret, Shawn, Diesel and the like were doing the same work for peanuts in comparison.

Make no mistake WWE is in DEEP shit right now, no company can shed that much value so quickly and stay the same. This hedge fund are seeking the removal of "the executive management team" That's Vince, Steph, Trips, Dunn, Linda...any and all of them could be culled... Would Vince sacrifice Trips? Of course he would, there's already talk of Vince cutting his legs off on some decisions and thus upsetting talent... this time though I think it'll be Vince who has to go.

Triple H has enough goodwill with the talent and the wrestling side of the company, a track record of success in his areas with revamping NXT to produce cheaper talent to headline shows etc that even if Vince were removed, a new head honcho would perhaps listen to him when it came to the product...even if it meant Steph was not there, which it seems she has been preparing for. If anything this will see a shift back to the core business of wrestling, which is what they have built for.

Could Vince insist someone like Shane comes in to replace him if he is asked to step aside? Shane could buy in as he is cash rich and successful outside WWE, has the contacts in China to help them get into that market and perhaps would be a strong compromise choice. If Vince is gonna step aside and Steph isn't gonna work for these people then Shane might as he has a record of solid business and again respect and knowledge within the company... he also notably walked from his dad...so he's no puppet for Vince.

A lot of this is speculation of course, but the fact that in one month we've gone from talk of buyouts and billion dollar TV deals to SEC investigations, 25% deal increase only and emergency conference calls is a massive sea change. The blood is in the water, if Disney, Universal or whoever were every gonna pounce and buy WWE. It'll happen soon.

What a bunch of nonsense. It really is amazing the talent you display at being completely clueless. Please tell me who is going to force vince out?

 

[No Count Pup]

The news of an emergency conference call on Monday is telling... SOMEONE is going in the top brass of WWE and I have a feeling we might see Steph and perhaps Triple H "stood down" from their management roles. Kevin Dunn is pretty much guaranteed to go.

The issue here is how far the problems have gone into the SEC rules and potential breaches. Make no mistake WWE spent a lot of time talking up their TV deal and not only is it down but it's a pitifully low amount compared to what they were talking? What happened? It would seem to be that the other networks in the "bidding" just said no thanks... leaving WWE to go "cap in hand" back to their current home with a derisory "increase". Has the network destroyed WWE? Quite possibly... this is not something that they are going to recover from quickly.

Losing half the companies share value in one day is a catastrophic event in some ways, for all the good done in recent years updating the product, sowing seeds for the future it would appear that something somewhere is seriously wrong in WWE and to be honest it's the old guy in charge who most will look at and his track record.

WBF, XFL, WWE Films, WCW, now the Network... every time Vince steps out of what he knows he seems to blow it. The vision is there but there is always seemingly something in either his execution or he really does believe his own hype that little bit too much. Problem he faces is this time he could end up in serious legal trouble if it's seen that he has misrepresented anything... when it was a private company he could do stuff and take the risk on himself and be the maverick, traded...you just can't.

It's also telling this new company has broken cover as owning stock now... this is clearly who Steph was shipping stock to. Did she realise what might be ahead and decided to "get her nest egg" out early as Shane did? It's a ballsy strategy when your husband is helping to run the company but it's also a pretty good "failsafe" for her, Paul and their kids if it goes wrong, which it appears to be.

At the heart of it WWE has tried to change to much too quick, there is probably some backlash from the PPV carriers and their hedge fund investor types... they don't like they were basically "cut out" and lost a major revenue stream...so they will be gunning for Vince.

The biggest issue Vince faces right now isn't even the investors and this call on Monday as such... it's the talent.

You're already hearing of Batista being angry at being "sold a bill of goods" on this latest return, guys like Jericho balking on a return and of course Punk taking his ball...or perhaps getting wind and getting out much as Steph has been shipping her stock. He's got a talent roster that it seems are not making what they once were but he has avoided telling specificially what they WILL make now...and no real "aces" to bring in who can ignite the business again. There are no more "mega stars" that haven't been milked with a return except Goldberg, who wouldn't do big business and didn't before. A lot of talent will now be seriously worried. Cuts will be coming as usual but perhaps more savage now the company has lost so much value... Suddenly Brock Lesnar is an expensive luxury...that decision to give him the streak could seem very foolish.

WWE does have a strong young roster that are getting over, but they have come in under the good times and are not going to be the "soldiers" a John Cena or Taker were unless the rewards are there. If not you quickly get the Brock from 2002 or Lashley situations all over again...push to the moon but be able to afford to walk... or worse from WWE's perspective more Rock types who after 5 years on the roster don't need WWE at all and can go on to other things. Even Foley's comments about money now seem to matter... if the veterans aren't making their money then it's gonna worry the next "stars" a lot... it could be back to 1994-5 where Hogan had taken so much out that Bret, Shawn, Diesel and the like were doing the same work for peanuts in comparison.

Make no mistake WWE is in DEEP shit right now, no company can shed that much value so quickly and stay the same. This hedge fund are seeking the removal of "the executive management team" That's Vince, Steph, Trips, Dunn, Linda...any and all of them could be culled... Would Vince sacrifice Trips? Of course he would, there's already talk of Vince cutting his legs off on some decisions and thus upsetting talent... this time though I think it'll be Vince who has to go.

Triple H has enough goodwill with the talent and the wrestling side of the company, a track record of success in his areas with revamping NXT to produce cheaper talent to headline shows etc that even if Vince were removed, a new head honcho would perhaps listen to him when it came to the product...even if it meant Steph was not there, which it seems she has been preparing for. If anything this will see a shift back to the core business of wrestling, which is what they have built for.

Could Vince insist someone like Shane comes in to replace him if he is asked to step aside? Shane could buy in as he is cash rich and successful outside WWE, has the contacts in China to help them get into that market and perhaps would be a strong compromise choice. If Vince is gonna step aside and Steph isn't gonna work for these people then Shane might as he has a record of solid business and again respect and knowledge within the company... he also notably walked from his dad...so he's no puppet for Vince.

A lot of this is speculation of course, but the fact that in one month we've gone from talk of buyouts and billion dollar TV deals to SEC investigations, 25% deal increase only and emergency conference calls is a massive sea change. The blood is in the water, if Disney, Universal or whoever were every gonna pounce and buy WWE. It'll happen soon.

Brilliant analysis. I have no problem with Vince McMahon stepping down as CEO. As long as Vince retains a majority share and the chairmanship. Once he lets 51% go, the slow decline into WCW-hood begins.

I hear some wrestling fans say they don't care about WWE financials, as long as they enjoy their wrestling. But the reason why so many fans are interested is because we've seen so many wrestling companies close their doors. In fact, wrestling companies are built to close. They all close down one way or another. But WWE has taken the mantle as "wrestling" in America. Once it closes or loses its integrity, professional wrestling will be lost in the wilderness. It would be a dark time for sure. Thus, many fans want to see a healthy and robust WWE.

Vince McMahon and his family should no longer be expected to innovate. They don't need to be cutting edge. Their function should simply be this: the preservers and protectors of wrestling history. Maybe a new generation needs to lead professional wrestling. But the majority stakeholders and custodians need to be the McMahons. Nobody has done more for professional wrestling than the McMahon's. Nobody has more invested personally and professionally than the McMahon's. Others would let WWE close down or merge under a different company. The McMahon's wouldn't let it go, because they are as passionate about WWE, if not more, than its fans.

 

[George Steele's Barber]

I wouldn't expect any creative change. What's done is done. Putting the belt on this guy or that guy does nothing. WWE and Wall Street put too high of an expectation on first the network and now the TV deal. Results did not come in as expected so the previous gains from the expectation have been lost. I'm no stock analyst but it feels like the market panicked in order to get value out before all gains were lost and things got out of hand.

If anything we will see more focus put on the network and maybe some cost cutting measures.

 

[THTRobtaylor]

What a bunch of nonsense. It really is amazing the talent you display at being completely clueless. Please tell me who is going to force vince out?

Your one post tells you that eh? Shows me you're strictly a C+ troll...

The SEC could take Vince out if he's seen to have been misleading? That float your boat? The remaining shareholders who ain't McMahons or allies? Even Bonnie Hammer might have some input in this.

A hostile takeover is possible, a lot is... but very simply Vince CAN be removed from charge if not ownership but as his stock and the companies is currently low then now would be the time to buy...and he might need the exit strategy.

But you wouldn't know anything about business... your one post tells me that

 

[THTRobtaylor]

Brilliant analysis. I have no problem with Vince McMahon stepping down as CEO. As long as Vince retains a majority share and the chairmanship. Once he lets 51% go, the slow decline into WCW-hood begins.

I hear some wrestling fans say they don't care about WWE financials, as long as they enjoy their wrestling. But the reason why so many fans are interested is because we've seen so many wrestling companies close their doors. In fact, wrestling companies are built to close. They all close down one way or another. But WWE has taken the mantle as "wrestling" in America. Once it closes or loses its integrity, professional wrestling will be lost in the wilderness. It would be a dark time for sure. Thus, many fans want to see a healthy and robust WWE.

Vince McMahon and his family should no longer be expected to innovate. They don't need to be cutting edge. Their function should simply be this: the preservers and protectors of wrestling history. Maybe a new generation needs to lead professional wrestling. But the majority stakeholders and custodians need to be the McMahons. Nobody has done more for professional wrestling than the McMahon's. Nobody has more invested personally and professionally than the McMahon's. Others would let WWE close down or merge under a different company. The McMahon's wouldn't let it go, because they are as passionate about WWE, if not more, than its fans.

That's the irony, everything Trips has done in his tenure seems geared to the company being just that, while Vince still aspires to be more than wrestling. It's a fundamental conflict and while the network hasn't failed it also hasn't delivered... Trips' side has in the main. So if there is going to be any kind of battle, it's gonna be along the lines of being a wrestling company or an entertainment company. The investors may just be tired of Vince's grand schemes and try and force it back to being a pure wrestling company.

 

[No Count Pup]

What a bunch of nonsense. It really is amazing the talent you display at being completely clueless. Please tell me who is going to force vince out?

Allow me to address your comment towards THTRobtaylor. Sure, no one can force Vince out. However, Vince could fall to public pressure from the investment community. If he is ever investigated for fraud or maleficence he may also be compelled from legal counsel to resign.

Is a McMahon departure likely? Probably not. But as the old WWE saying goes, "Never say never."

 

[THTRobtaylor]

I don't think he would be "forced out" in the traditional sense, but I could see Hammer and Universal or Disney coming in now with a cash offer that he takes as a way to appease the SEC so he's "out of it" in terms of actual control but can negotiate a "consultant" role much in the way George Lucas did with Star Wars... they made clear he has no more actual power, but they respect his work and vision enough that they will involve him creatively and pay a retainer for doing so.

You SEEN Vince lately? he looks old, sounds old and is thinking old seemingly on a lot of things, perhaps all those sleepless nights have caught up, perhaps his time is gone or perhaps he is desperately trying to cling to power... but if I see an old man, then the investment community also see an old man...if the boys see a guy who "doesn't quite get it anymore" then the investors will probably see that too.

They say get off the stage before they hook you off... this might be Vince's cane now unless he walks of his own volition.

 

[Slyfox696]

Losing half the companies share value in one day is a catastrophic event in some ways

Not when it's still $2 more a share than it was the same time last year.

It's easy to see what happened. The WWE's stock, between the announcement of the WWE Network and the upcoming TV deal led to speculation of the stock. Once the initial numbers came in for the Network (even though the numbers were not bad at all), then people started to get scared, and that's why the stock dropped from the $30 range to the high teens. And now with the TV deal announced, it dropped right back around where it's been for years.

Your one post tells you that eh? Shows me you're strictly a C+ troll...

Actually, his/her post wasn't far off.

The SEC could take Vince out if he's seen to have been misleading?

Extremely unlikely. First of all, I've not seen anything which says the SEC is investigating the WWE. Second of all, if there was misrepresentation, it'd be far more likely to be met with a fine.

The remaining shareholders who ain't McMahons or allies? Even Bonnie Hammer might have some input in this.

A hostile takeover is possible, a lot is... but very simply Vince CAN be removed from charge if not ownership but as his stock and the companies is currently low then now would be the time to buy...and he might need the exit strategy.

Vince McMahon owns 87% of the Class B stock and over 50% of the Class A stock. No one is forcing Vince out.

McMahon now owns more than 39 million shares (56.9 percent) of Class A Common Stock. Also, McMahon owns 87.2 percent of Class B McMahon Family Stock.

http://pwtorch.com/artman2/publish/WWE_News_3/article_69548.shtml#.U3aVZBD5fGU

Even after the sell-off, the McMahon family still firmly controls the Stamford, Conn., company as CEO Vince McMahon owns 87 percent of the 10-votes-per-share B class.

http://nypost.com/2013/10/10/stephanie-mcmahon-cashes-in-wwe-stock-to-pay-for-house/

But you wouldn't know anything about business... your one post tells me that

Says the person who just suggested stockholders might vote Vince out.

 

[klunderbunker]

It amazes me how fast the business world overreacts to things. Here are a few things to remember.

1. Stocks can go back up. People are acting like this is the end of WWE. Just two months ago the stock hit I believe a record high. This isn't exactly something that was building for awhile. Every company hits a peak and then comes back down.

2. Let's see where they are when the second quarter comes in and millions of people buy the Network internationally.

3. I don't see how gaining $40 million over last year's figure is considered horrible. They have more money now than they did before. To me, that sounds like a good thing.

And before anyone asks, no I don't know a ton aabout the stock market but I do know one thing: it overreacts to almost every bit of news ever.

 

[endless]

The SEC could take Vince out if he's seen to have been misleading? That float your boat? The remaining shareholders who ain't McMahons or allies? Even Bonnie Hammer might have some input in this.

A hostile takeover is possible, a lot is... but very simply Vince CAN be removed from charge if not ownership but as his stock and the companies is currently low then now would be the time to buy...and he might need the exit strategy.

Misleading about what? WWE said they expected to have 1 million subscribers by the end of the year, they got almost 700k in 42 days. They said their GOAL was to double or triple the tv revenue, and the fact is that nobody knows right now how much they're getting from NBC, but everybody is expecting they got a 25%-50% increase which is not bad. They still have international deals left. WWE network was the right thing to do for the long term considering that PPV revenue was already going down.

The only possible way Vince ends up not owning WWE anymore is if he SELLS the 80% of the company he owns. Nobody would force him to do anything. Stephanie sold her shares and when she did they were valued at $10-$12 just like they are today, after they were sold they lost their voting power. Vince ain't going anywhere, the wwe ain't going anywhere, stop panicking.

 

[zomigosh]

My gosh, how can so many of you be this overdramatic, clueless and stupid?

Yes he lost 350M, but he only gained that not too long ago from unwarrented hype built up by the WWE Network and Television deals through stock prices. They both failed to meet the expectations set by them, and now their stock prices are right back down to where they were before the hype. No gain, no loss. The stock prices corrected themselves.

At the end of the day, they still gained 60m(?) from the Television deals and they can up the price of the WWE Network any time they want and it won't lose many (if any) subscribers. They're fine. This blunder really doesn't have anything to do with the current WWE Product, their wrestlers, or anything like that, it has to do with the WWE overhyping the Network and Television deals and tricking people into buying their stocks. Chill the fuck out.

 

[No Count Pup]

I don't think he would be "forced out" in the traditional sense, but I could see Hammer and Universal or Disney coming in now with a cash offer that he takes as a way to appease the SEC so he's "out of it" in terms of actual control but can negotiate a "consultant" role much in the way George Lucas did with Star Wars... they made clear he has no more actual power, but they respect his work and vision enough that they will involve him creatively and pay a retainer for doing so.

You SEEN Vince lately? he looks old, sounds old and is thinking old seemingly on a lot of things, perhaps all those sleepless nights have caught up, perhaps his time is gone or perhaps he is desperately trying to cling to power... but if I see an old man, then the investment community also see an old man...if the boys see a guy who "doesn't quite get it anymore" then the investors will probably see that too.

They say get off the stage before they hook you off... this might be Vince's cane now unless he walks of his own volition.

Rings very true.

It would be quite astonishing to see the management team replaced. But it may also restore confidence in investors. This is quite a thorny topic that WWE probably never wanted to address. The is one of the darkest days in wrestling history. It demands action that is as impactful as the situation is dire.

 

[THTRobtaylor]

Not when it's still $2 more a share than it was the same time last year.

It's easy to see what happened. The WWE's stock, between the announcement of the WWE Network and the upcoming TV deal led to speculation of the stock. Once the initial numbers came in for the Network (even though the numbers were not bad at all), then people started to get scared, and that's why the stock dropped from the $30 range to the high teens. And now with the TV deal announced, it dropped right back around where it's been for years.

Actually, his/her post wasn't far off.

Extremely unlikely. First of all, I've not seen anything which says the SEC is investigating the WWE. Second of all, if there was misrepresentation, it'd be far more likely to be met with a fine.



Vince McMahon owns 87% of the Class B stock and over 50% of the Class A stock. No one is forcing Vince out.


http://pwtorch.com/artman2/publish/WWE_News_3/article_69548.shtml#.U3aVZBD5fGU


http://nypost.com/2013/10/10/stephanie-mcmahon-cashes-in-wwe-stock-to-pay-for-house/

Says the person who just suggested stockholders might vote Vince out.

It's as much about perception as it is actual damage to the business... Jobs got forced out of Apple on something similar, at the time he didn't "fit" what was needed and it wasn't until later he got back in.

For a LONG time people have had questions about Vince's position and ability to run the company either as successfully as in the past or to deliver the commitments he makes to investors. That is aside from the creative end and the stories there...

There are major changes this brings, for a start never has a major hedgefund type company come out and say we own part of WWE and we want change. Sure Vince owns the majority, but for these to make such a statement means they likely own a large chunk of what else there is, enough for force the conference call and get the issue raised.

Yes, this may be down to speculators hoping to turn a quick profit and being pissed it's not gone to plan...but a month ago WWE were bigging up this TV deal as being close to a billion dollars and comparing the amounts to the Premier Leauge deal in the UK... it's not even close if enough investors state those statements materially influenced them to buy stock then WWE COULD be guilty of misrepresentation. Sure a fine might be the outcome, but how many CEO's of fined companies then keep their jobs? None...

While a different case, the Sterling case has shown that even owning something is not going to protect you if you majorly screw up. The investors might be happy with the numbers yet... stock could rally on Monday and Tuesday... it could be a blip.

But even last week there was talk of a request for an SEC investigation, likely from this same company. They're a wild card that WWE and the McMahons have never had to deal with, perhaps there is an agenda, but they could be saying that Vince can't focus on THIS side of the business and creative at nearly 70 or making outrageous claims that pay off so badly. They will point to his track record of failure outside wrestling and may demand a return to core business... which is lucky as Trips' whole tenure has been based around that.

They could argue that this drop is just a beginning...and to protect their investment they want a change...yada yada yada...

Vince has never faced this before, active opposition to how things are being done, not from the boys or a network but people who co-own his company. He can't play Mr. McMahon on these guys and expect it to work. This isn't Flair co-owner as an angle...this is a real guy who he has to deal with representing this company, who is not gonna care that he's Vince McMahon Dammit TM he just wants the money he was told he was getting so his shareholders are happy.

 

[endless]

It's as much about perception as it is actual damage to the business... Jobs got forced out of Apple on something similar, at the time he didn't "fit" what was needed and it wasn't until later he got back in.

For a LONG time people have had questions about Vince's position and ability to run the company either as successfully as in the past or to deliver the commitments he makes to investors. That is aside from the creative end and the stories there...

There are major changes this brings, for a start never has a major hedgefund type company come out and say we own part of WWE and we want change. Sure Vince owns the majority, but for these to make such a statement means they likely own a large chunk of what else there is, enough for force the conference call and get the issue raised.

Yes, this may be down to speculators hoping to turn a quick profit and being pissed it's not gone to plan...but a month ago WWE were bigging up this TV deal as being close to a billion dollars and comparing the amounts to the Premier Leauge deal in the UK... it's not even close if enough investors state those statements materially influenced them to buy stock then WWE COULD be guilty of misrepresentation. Sure a fine might be the outcome, but how many CEO's of fined companies then keep their jobs? None...

While a different case, the Sterling case has shown that even owning something is not going to protect you if you majorly screw up. The investors might be happy with the numbers yet... stock could rally on Monday and Tuesday... it could be a blip.

But even last week there was talk of a request for an SEC investigation, likely from this same company. They're a wild card that WWE and the McMahons have never had to deal with, perhaps there is an agenda, but they could be saying that Vince can't focus on THIS side of the business and creative at nearly 70 or making outrageous claims that pay off so badly. They will point to his track record of failure outside wrestling and may demand a return to core business... which is lucky as Trips' whole tenure has been based around that.

They could argue that this drop is just a beginning...and to protect their investment they want a change...yada yada yada...

Vince has never faced this before, active opposition to how things are being done, not from the boys or a network but people who co-own his company. He can't play Mr. McMahon on these guys and expect it to work. This isn't Flair co-owner as an angle...this is a real guy who he has to deal with representing this company, who is not gonna care that he's Vince McMahon Dammit TM he just wants the money he was told he was getting so his shareholders are happy.

Just more nonsense based on fantasy land perceptions of facts and possible investigations that haven't actually found anything. You do have an amazing talent you don't even know you have.

 

[THTRobtaylor]

Unfortunately a large part of the value of any business IS perception and "goodwill". When that part of the business is threatened, along with material drops in values that is blood in the water.

I hope it is all fine and just a blip, I'd hate to see some of the good work done retooling for the future in the last 2 years damaged. I want there to be a WWE next year, in 5 and 10 and 50 years... but what you call fantasy land is how a lot of investors work... they go with whether they think a company is a good bet, their gut and of course the numbers have to be in their acceptable risk range...

WWE now could seem a very high risk investment. If an investigation finds even one thing...boom problems ahead, if an investigation is even made, it damages that perception of the company as "no smoke without fire" will affect.

Sure dismiss me if you like, but you have major talent like Batista pissed at money and being "lied to", so you actually think Vince would have a problem doing it to faceless investors? But you're still a C+ troll at best.

 

[zomigosh]

The damage that this has done is Vince's reputation as the CEO. Who's going to believe anything that he says in regards to speculation of product value/profit after this? What reason do the long-term investors have for keeping their stock now, when likely the only big change in the grand-scheme of things that the WWE will have for a long time didn't up stock prices at all and likely tarnished the WWE's reputation going forward?

At the end of the day, they will find a way to make the WWE Network profitable. They'll up the price of it and no one will care because the majority of wrestling fans (including myself) are blindly loyal to them. But who's going to become a long-term investor in the WWE after this? THAT is where the blunder is.

 

[endless]

Sure dismiss me if you like, but you have major talent like Batista pissed at money and being "lied to", so you actually think Vince would have a problem doing it to faceless investors?

Did batista call you and tell you this himself or did you read it on a dirt screen or a wrestling website? I'm not saying it's not true but you seem to see it as a fact. I seem to remember all the websites saying it was a RUMOR.

 

[LuckyLouie]

This is what happens when people treat wrestling as entertainment.
While it might be, its WRESTLING. Its not UFC, its not Breaking Bad. It is its own niche and needs to treated like that.
I can't really see buying stock in a company when my .... stock is human beings who can get hurt. While I don't know how to fully run the business, I don't know the behind the scenes of wrestling. But I don't think its a good idea to treat Wrestling as any other sport or entertainment.
You don't see anyone buying stock in The Yankess.....I think...I don't follow sport. If I'm wrong and you can buy stock....then idk. Im talking out of my butt.