Who Is Buying WWE?
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WWE is one of the biggest professional wrestling companies in the world, and their fans are some of the most passionate around. But who is actually buying WWE?
Potential suitors
WWE is an entertainment company with a rich history in the industry. The company is currently looking for a new buyer, and there are a few potential suitors. The first potential suitor is the Khan family, who also owns the Jacksonville Jaguars. The Khans are worth an estimated $8.6 billion, and they have the financial resources to make a bid for WWE. Another potential suitor is Jeff Bezos, the founder and CEO of Amazon. Bezos is worth an estimated $182 billion, and he has the deep pockets to make a bid for WWE.
Dalian Wanda Group
Dalian Wanda Group is a Chinese conglomerate founded in 1988 by Wang Jianlin. The company is the world’s largest operator of movie theaters and owns AMC Theaters, the second largest movie theater chain in the United States.
In January 2017, it was announced that Dalian Wanda Group had agreed to purchase a majority stake in WWE for $1.65 billion. This would make Wanda Group WWE’s largest shareholder, with a 12% stake in the company.
Wang Jianlin has stated that he plans to use WWE as a platform to expand his company’s reach into the American entertainment market.
The Kraft Group
The Kraft Group, LLC is an American diversified holding company headquartered in Foxborough, Massachusetts, founded in 1998 by Robert K. Kraft. The company’s portfolio includes paper and packaging manufacturing, sports and entertainment properties, real estate development and a private equity portfolio.
Kraft Heinz Company, Mondelez International, and The Coca-Cola Company are three of the largest food and beverage companies in the world. All three companies have been rumored as potential suitors for WWE.
The Kraft Group owns the New England Patriots, New England Revolution, Gillette Stadium, and Gillette Stadium Concert Series. The group also has a minority stake in Major League Soccer’s Columbus Crew SC.
Sinclair Broadcasting Group
sinclair broadcasting group is an American telecommunications company that is one of the largest television broadcasters in the country. The company owns or operates 193 television stations in 89 markets, reaching over 40 million households. Sinclair also owns and operates four regional sports networks and one national network, Ring of Honor Wrestling.
In May 2017, it was announced that Sinclair had reached an agreement to acquire Tribune Media Company for $3.9 billion. The deal is currently awaiting regulatory approval and is expected to close in the second half of 2017. If the deal is approved, Sinclair would become the largest television broadcaster in the United States, reaching over 70 million households.
Why WWE?
The WWE has been a part of American culture for many years now. It is one of the most popular forms of entertainment, and it has a huge following all over the world. With that being said, there are still many people who are not familiar with the WWE and its product.
WWE’s global reach
WWE’s global reach is one of the main reasons why investors are interested in the company. WWE has a large and loyal fan base all over the world, and the company does a great job of tapping into that fan base to generate revenue.
WWE has television deals in 170 countries, and its flagship shows, Raw and SmackDown, are broadcast in more than 30 languages. The company also has a strong digital presence, with its content reaching fans through a variety of online and mobile platforms.
In addition to its global reach, WWE has a number of other attractive qualities that make it an attractive investment opportunity. For example, WWE has a very low cost of entry (it is one of the cheapest sports franchises to buy into), and it generates a significant amount of revenue from live events.
WWE’s valuable content
In recent years, WWE has made a concerted effort to boost its live event attendance and television ratings by producing more family-friendly programming. This shift has been successful in attracting a wider range of viewers, including a significant number of women and children. WWE’s content is now seen as valuable not just by hard-core fans, but by casual viewers and advertisers as well.
WWE’s strong financials
Recently, WWE has been in the news for all the wrong reasons. The company has been embroiled in a sexual harassment lawsuit, as well as a class action lawsuit alleging that WWE failed to properly protect its wrestlers from concussions and other head injuries. Despite these legal challenges, WWE continues to be a thriving business. In fact, the company’s financials are stronger than ever.
In 2018, WWE generated $930 million in revenue, up 10% from the previous year. This includes $ 411 million from live events, $188 million from TV rights fees, $159 million from digital media (including WWE Network), and $172 million from consumer products (including merchandise). Of this total revenue, 87% came from domestic sources and 13% came from international sources.
WWE’s domestic live event business is booming, with ticket sales up 18% in 2018. The company sold over 1.8 million tickets last year, generating $191 million in revenue. This was driven by growth in both attendance and ticket prices. The average ticket price increased 4% to $57 per ticket.
WWE’s international live event business is also growing rapidly. Ticket sales increased 12% in 2018 to 1 million tickets sold. This generated $220 million in revenue, up from $196 million the previous year. The average ticket price also increased 5% to $68 per ticket.
WWE’s TV rights fees continue to grow as well. In 2018, the company generated $188 million in TV rights fees, up 8% from the previous year. This growth was driven by higher fees from both NBCUniversal (which airs WWE’s flagship shows Raw and Smackdown on USA Network) and Fox (which airs Smackdown on its new Fox Sports 1 channel).
WWE’s digital media business is also doing very well. In 2018, the company generated $159 million in revenue from digital media, including WWE Network subscriptions and advertising revenues. This is up 15% from the previous year. And it looks like this growth will continue in 2019 as WWE Network continues to grow its subscriber base (it currently has over 2 million subscribers).
Finally, WWE’s consumer products business is also doing well. In 2018, the company generated $172 million in revenue from consumer products (including merchandise), up 7% from the previous year. This growth was driven by higher sales of licensed products (such as t-shirts and action figures) and higher royalties from partner companies (such as Mattel).
What’s at stake?
As the professional wrestling world continues to grow and expand, one company that has been at the forefront of that growth is WWE. However, there have been rumors swirling as of late that WWE could be up for sale. So, who is buying WWE and what’s at stake?
WWE’s future as a public company
WWE’s future as a public company is at stake as the wrestling entertainment group looks for a new TV deal.
WWE’s current TV deal with NBCUniversal expires in September 2019, and the company has been Shopping around for a new deal. But with no new TV deal in hand yet, WWE’s stock has taken a beating, falling more than 30% over the past year.
The decline in WWE’s stock price has wiped out nearly $2 billion of the company’s market value, and Wall Street is starting to lose faith in WWE’s ability to remain a public company.
If WWE does not ink a new TV deal by September 2019, it will likely have to de-list from the stock exchange and go private. That would be a huge blow to WWE’s status as one of the most recognizable brands in sports entertainment.
WWE’s potential value
As WWE continues to grow in popularity, its potential value as a business also increases. WWE has been rumored to be a takeover target for many years, and its current market value is estimated to be around $3 billion.
If WWE were to be sold, the most likely buyers would be other entertainment companies or private equity firms. The company would likely fetch a high price, as it has a large and dedicated fan base, strong brand recognition, and global appeal.
However, there are also some risks associated with buying WWE. The company is highly dependent on its two main stars, John Cena and Brock Lesnar, and if either of them were to retire or leave WWE, it could have a significant impact on the business. Additionally, WWE’s content is often criticized for being too violent and sexist, which could turn off potential buyers.
What’s next?
If you’re a fan of WWE, you might have noticed that the company was recently bought by a group of investors. This group includes the likes of Vince McMahon, Triple H, and Stephanie McMahon. So, what does this mean for the future of WWE?
WWE’s stock price
On Thursday, WWE’s stock price closed at $40.77 per share, down from its 52-week high of $84.87.
This month, WWE replaced its chief brand officer and announced the departure of its chief revenue and marketing officer, further signalizing that the company is undergoing a period of change.
These executive shakeups come as WWE’s stock price and viewership have both struggled in recent years. For example, in 2016 WWE’s raw ratings averaged 3 million viewers per week, down from 4 million in 2015.
WWE’s next TV rights deal
As WWE’s current TV rights deals with NBCUniversal and Fox are set to expire in September 2024, the company is already looking ahead to its next deal.
WWE has been in talks with a number of potential partners, including ESPN, Amazon, Comcast and Dish Network. The company is believed to be seeking a significant increase in its rights fees, which could lead to a record-breaking deal.
While it’s still early in the process, WWE is said to be optimistic about securing a major increase in its TV rights fees. The company is expected to make a decision on its next TV partner by early 2024.