For the first time in a week, there isn’t anything new with CM Punk or Brock Lesnar to report. We do have something serious however — news is caming out of the WWE financial sector that could prove to be very detrimental to the wrestling giant’s future. WWE’s stock rose 8 percent today to a 13.0 daily high. At the moment, it sits at 12.57 with about an hour left of the trading window.
SEScoops is reporting that the boost in revenue could heighten speculation for a buyout that would make Vince McMahon no longer the CEO.
The stock price broke $13 for the first time in two months. According to investment website SeekingAlpha.com, the buzz surrounding 21st Century Fox attempting to buy out Time Warner has investors once again considering WWE as a strong takeover candidate.
Although financial performance of the WWE Network “hasn’t dazzled” yet, analysts still remain optimistic of its potential, especially if it was run by a company on the distribution side of the media business.
Disregarding the website’s reputation, which is quite high, the potential for WWE to be bought out is ludicrous. Nobody is going to buy the company from the McMahons. That company has been in the McMahon family for two generations, including this one, and that name will never spread its wings outside of professional wrestling.
Granted, other projects were attempted like the XFL, but the WWE is not going to change hands anytime soon. Now, when the unfortunate day Vince passes occurs, at that point a change could take place. Until then, we won’t think of that happening, as well as the WWE going to another buyer.
The McMahons have no reason to sell, even after the stock scare that sent the WWE into hyperdrive. Repercussions are still taking place. For example, the budget cuts are not stopping anytime soon. WrestleMania 31 may not be the most lucrative show the WWE has put on, because the money just isn’t there. Production crews for WWE are starting to get fed up after the budgets were lessened.
Budget cuts have caused the bus to be taken away and without the bus, the crew has to drive to the next city, which could be a few hours away, leaving them with very few hours to sleep. Another plus with the bus was that they could get some sleep on the bus before shows began.
This is causing the crews to get very tired, and the report goes on to say that many might be looking for work elsewhere after their current contract expires. WWE didn’t just sacrifice the talent, but they are also burning bridges in the production department, where the hardest work gets done.
McMahon has a ton of thinking to do over the next six months. He needs to end the year on a good note, or else investors will not look at WWE as a profitable business. If that comes to passé, don’t expect it to be merry backstage. The fall from pro wrestling giant to financially-hurt company is a downward spiral of torture and abhorrent behavior. As fans, let’s not hope this becomes a reality.
[Images via wrestlingrumors.net and wrestlinginc.com]