WWE Chairman Vince McMahon is reportedly looking to sell the company for $9 billion.
A new report from Bloomberg notes that McMahon wants to get as much s $9 billion for a potential sale of the sports entertainment juggernaut. This is more than the recently-reported asking price of around $8.5 billion.
WWE has reportedly received offers for the company. It was noted that UFC parent company Endeavor Group Holdings is the likely bidder, as well as investors from the Middle East who have already made major investments in golf and soccer. It wasn’t clear if this refers to Saudi Arabia’s Public Investment Fund.
Endeavor would likely need financial help from a third party since its market capitalization of $10.4 billion is only a bit more than McMahon’s asking price, but Endeavor has already shown that they can integrate and grow a sports media business with a divisive founder in the UFC. Endeavor paid $4 billion for UFC in 2016.
Large strategic buyers like Netflix and Disney have been mentioned as potential buyers in the past, but this new report from Bloomberg notes that they may be uneasy taking on a business controlled by McMahon that involves the sometimes messy personal lives of its wrestlers.
Bloomberg speculated that McMahon may not find many buyers eager to pay his price due to the shaky global economy and rising interest rates. A valuation of $9 billion amounts to about seven times the company’s $1.29 billion in sales last year, and 23 times its adjusted operating income before depreciation and amortization (OIBDA), both at the high end for the company.
Vince’s asking price is 37% greater than WWE’s current market value of $6.5 billion. WWE shares have risen 29% this year, largely in part due to sale speculation.
WWE CEO Nick Khan previously confirmed that WWE wanted to sell the company by mid-summer.
Stay tuned to WrestlingHeadlines.com for more.
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