Vince McMahon is back as Chairman of the WWE. The announcement on Friday sparked WWE stock as it jumped 20% in early morning trading.
McMahon returns as the company heads into its biggest events of the year: Royal Rumble later this month and the annual Wrestlemania event this April. In addition, negotiations for the company’s next media deal will commence sometime after Wrestlemania.
McMahon indicated his return last month with two letters to the Board of Directors. McMahon has the most preferred voting stock shares in the company which enables his return. In a December 31st correspondence which was attached to the SEC Filing announcing his return, he indicated that he would need direct involvement in the media negotiations if he would approve of a deal.
From the correspondence, you can infer that there is tension between the Board and McMahon’s return.
JoEllen Lyongs Dillon, Jeffrey R. Speed and Alan M. Wexler were ousted from the board making room for McMahon and former executives Michelle Wilson and George Barrios.
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The intrigue will continue as the Board of Directors navigates dealing with McMahon as in correspondence with him, the Board requested he payback the money for “investigation-related expenses” regarding the sexual misconduct payouts he gave to several woman as well as two payments made to Donald Trump. There is still the prospect of a shareholder lawsuit but this is a precarious time for it with a looming media deal and the possibility of selling the company outright. With the stock rising due to the rumors of a sale, we shall see what the Board’s next move will be.
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