Stop me if you’ve heard any of this before, but a law firm is now investigating the WWE. The real life soap opera continues, right? It seems all of the law firms have one thing in common: They all think WWE is lying about something and that the money they claim to be earning may not be actually what they are bringing in.
The company investigating the WWE this time is the Law Firm of Levi & Korsinsky, LLP, they noted that they are launching an investigation into WWE’s Board of Directors in response to possible breaches of fiduciary duty. Here is their press release regarding it all:
SHAREHOLDER ALERT: The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Possible Breaches of Fiduciary Duty by the Board of Directors of World Wrestling Entertainment Inc.
NEW YORK, May 22, 2014 (BUSINESS WIRE) — Levi & Korsinsky, LLP is investigating World Wrestling Entertainment Inc. (“WWE” or the “Company”) WWE in connection with possible breaches of fiduciary duty.
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On May 16, 2014, the Company disclosed that it had reached a multiyear deal with NBCUniversal for its television programs RAW and SmackDown, stating that the annual value of its television distribution agreements is expected to reach $200 million, far below investor expectation. On a May 19, 2014 earnings call, Chairman and CEO Vince McMahon stated, “We were a little disappointed in our NBCU deal, quite frankly…” Shares of WWE are down from a close of $19.93 per share on May 15, 2014, to a recent close of just $10.96 per share on May 19, 2014.
Basically, the WWE has been on the receiving end of a lot of heat for their new TV deal. They have even gotten to the point where people do not seem to comprehend that the WWE took the deal that they did. So much so, they are not wanting to believe it and this is a major reason for the investigations.
WWE’s stock was at the highest it has ever been just a month or so ago, and it went down due to many hating the WWE TV deal along with reported loses from the WWE Network. So obviously instead of understanding that is a main reason for the stock dip too, investigations are out on that as well.
Due to the fact that WWE felt it could get more, they told their investors they plan to get a lot out of their new TV deal. They did not get the number they wanted, but still added more per year than what they made prior. So while WWE did not get the number they wanted, they also still managed to go higher than the previous deal, meaning WWE did not lose any money on the deal, but gained. So the profit was there, but stockholders wanted to see more. So hard to satisfy the anal stock people.
The fourth investigation is now going on. Do not be surprised to see more. Apparently, several firms need to gather the same information so that each of them can feel as if they know more than the other does — which in reality is a whole lot of nothing. Investigations like this will also take time and money. So, expect a lot of that to be spoken of down the line. Also, do not expect to hear the results of their findings on the WWE for a while either.
IMG Credit: Google