WWE Stock Takes A Huge Bodyslam
Ever since the WWE announced its new TV deal, the stock price for the company has plummeted big time.
The WWE had hoped it could double or even triple its current TV deal with NBC Universal. The current deal is worth $160 million, and WWE wanted to increase that by a large margin. They shopped around, but it sounds like they were not successful. They renewed their contract with NBC Universal with a new $200 million deal instead.
This is far lower than the $280 million or more that investors were hoping for. The WWE’s stock price was hovering around the $20 mark, but plummeted immediately after the TV deal was announced. Now the company’s shares are only worth around $11. It’s worth mentioning Vince McMahon is no longer a billionaire because of the huge drop.
This is a big blow to WWE as their stock dropped tremendously for a second time this year. The share price was worth around $30 at its peak this year. Many people were hoping the WWE Network would be a huge success. Alas, around 667,000 subscribers were announced and the share price dropped to the $20 mark.
I’m not the smartest person when it comes to business, but the WWE needs to find a way to bounce back from this. The TV deal is disappointing, but it’s a multi-year deal. They cannot ask NBC Universal for more money until the deal expires. The only way they can bounce back is make the WWE Network more successful.
The WWE is hoping to get one million WWE Network subscribers by the end of 2014. In 2015, they will release the network to other countries. Hopefully everything works out for the WWE in the months to come.