According to reports, WWE Chairman Vince McMahon is looking to sell the company for $9 billion.
According to a new Bloomberg report, McMahon wants as much as $9 billion for a potential sale of the sports entertainment juggernaut. This is higher than the previously reported asking price of approximately $8.5 billion.
According to reports, WWE has received bids for the company. It was noted that UFC parent company Endeavor Group Holdings, as well as Middle Eastern investors who have already made significant investments in golf and soccer, are likely bidders. It was unclear whether this was referring to Saudi Arabia’s Public Investment Fund.
Endeavor would almost certainly require financial assistance from a third party because its market capitalization of $10.4 billion is only slightly higher than McMahon’s asking price, but Endeavor has already demonstrated that it can integrate and grow a sports media business with a divisive founder in the UFC. In 2016, Endeavor paid $4 billion for UFC.
Large strategic buyers such as Netflix and Disney have previously been mentioned as potential buyers, but according to a new Bloomberg report, they may be wary of taking on a business controlled by McMahon that involves the sometimes messy personal lives of its wrestlers.
Bloomberg speculated that due to the shaky global economy and rising interest rates, McMahon may not find many buyers eager to pay his asking price. A $9 billion valuation is approximately seven times the company’s $1.29 billion in sales last year and 23 times its adjusted operating income before depreciation and amortisation (OIBDA), both of which are on the high side for the company.
Vince’s asking price is 37% higher than WWE’s current market value of $6.5 billion. WWE stock has risen 29% this year, owing largely to speculation about a sale.
WWE CEO Nick Khan previously stated that the company hoped to sell by mid-summer.
