Vince McMahon Has Major First World Problems, May No Longer Be Billionaire
It appears WWE‘s new television deal with NBC Universal is a good and bad thing.
News broke yesterday that WWE had reached an agreement to keep Raw on USA Network and Smackdown on Syfy for the foreseeable future:
“NBCUniversal Cable Entertainment and WWE (NYSE: WWE) today announced a multi-year strategic partnership for WWE’s flagship programming and ratings juggernauts MONDAY NIGHT RAW® for a three-hour block on USA Network and the top-rated FRIDAY NIGHT SMACKDOWN® on Syfy. The two programs are the longest-running weekly episodic entertainment programs on cable TV with a combined reach of 10.8M viewers each week,” read the official press release from WWE.
But although WWE and NBC are thrilled, investors are not. WWE’s stock plummeted on Friday by almost 50 percent. It’s estimated that this drop in stock price cost chairman Vince McMahon approximately $344 million. That’s right, well over a quarter of a billion dollars in one day.
Because of this drop, it’s thought that Mr. McMahon is no longer a billionaire. Talk about first world problems…
As bad as this whole thing sounds — it’s not really that bad. Yes, WWE’s stock dropped drastically in one day. But there’s no way it will continue to plummet. The company has too many positive things going for it, including the newly launched WWE Network. While investors may not like the new deal because of earning potential, most wrestling fans will agree that Raw belongs on USA Network and that WWE belongs with NBC Universal.
Remember when WWE was on TNN?