Several months after his retirement from WWE following an investigation into alleged misconduct, Vince McMahon is rejoining the board of WWE, according to a report by the Associated Press.
WWE said Friday that McMahon, the founder and majority shareholder of WWE, would return as executive chairman. A shakeup of the board has also been announced.Shares of the company are up more than 70% in the last 12 months. The stock trades with a market capitalization of more than $ 6 billion according to CNBC’s report.
The stock previously closed at $ 72.04 on the NYSE, opening at $ 80.05 today. The stock a is trading in a day range of $ 80.05 – $ 89.43 (at the time of writing this article).
McMahon retired as WWE’s chairman and CEO in July last year . He had stepped down temporarily from the posts a month earlier.
Vince McMahon agreed to pay more than $ 12 million over the past 16 years to suppress allegations of sexual misconduct and infidelity according to a report by the Wall Street Journal.
The Stamford, Connecticut, company said Friday that it would be looking at “all strategic alternatives to maximize shareholder value.
A report by the Associated Press cited rumours and said that WWE may be interested in selling the organization to another entertainment company.
The American wrestling promoter appeared to address the possibility of selling WWE in a letter to the board, dated Dec. 20, but published Friday.
“I believe WWE has a unique opportunity during this critical juncture to maximize value for its shareholders and all other stakeholders, McMahon wrote. Specifically, given the rapidly evolving media landscape in which more and more companies are seeking to own the intellectual property offered on their streaming platforms I firmly believe that the best thing to do for all of WWE’s shareholders and other stakeholders is to undertake a comprehensive review of strategic alternatives”, Mc Mahon said in the letter.
The company said in early November that an investigation of a special committee formed to look into the misconduct allegations was completed and that the committee was disbanded, the Associated Press reported.
The company on Friday did not immediately return requests from The Associated Press seeking details about the findings of that committee. It did say at the time that the company was implementing some of the suggestions of the committee.
Some of WWE’s biggest premium live events of the year are likely to soon air such as the Royal Rumble which takes place this month in Texas and the Wrestlemania, a two-day event, which begins in April. Thus McMahon’s return is happening at an eventful time.
McMahon said in a prepared statement that he doesn’t intend for his return to have any impact on the roles, duties or responsibilities of WWE’s existing management team.
His daughter, Stephanie McMahon, serves as co-CEO, along with Nick Khan. McMahon’s son-in-law, Paul Levesque, who wrestled under the name Triple H, serves as chief content officer.
Three board members, JoEllen Lyons Dillon, Jeffrey R. Speed and Alan M. Wexler, were ousted to make room for McMahon and two other board members, Michelle Wilson and George Barrios, according to AP’s report.
When he purchased what was then the World Wrestling Federation from his father in 1982, wrestling matches took place at small venues and appeared on local cable channels.
WWE matches are now held in professional sports stadiums and the company has a sizeable overseas following.
Revenue in 2021 exceeded $ 1 billion for the first time and the company has television deals with Fox and NBCUniversal. It announced a multi-year expansion of its original programming partnership with A&E in May 2022.
WWE stars have become crossover sensations, including Hulk Hogan, Dwayne The Rock Johnson, Stone Cold Steve Austin and John Cena.
