Former WWE CEO Vince McMahon, currently serving as Executive Chairman of TKO Group Holdings, reportedly intends to sell $700 million worth of his stocks in the holding company.
TKO Group Holdings, the parent company of the wrestling promotion established by Endeavor Group Holdings, announced the news on Thursday, November 9, via a press release.
The 78-year-old executive plans to sell 8.4 million shares of Class A common stock to TKO, valued at approximately $713 million based on their recent closing price of $84.90 on Thursday.
McMahon is set to receive all net proceeds from this offering, representing about 30 percent of the 28 million shares he owned in TKO as of August 2023, according to regulatory filings.
TKO has announced its intention to repurchase around $100 million worth of shares of its Class A common stock from the underwriters involved in McMahon's stock sale.
Earlier this year, Endeavor struck a deal to create TKO as a merger between WWE and another of their assets, mixed martial arts promotion UFC. This arrangement marks the first time in history that WWE is not majority-controlled by the McMahon family.
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What does McMahon's sale mean for WWE?
This move might suggest McMahon is contemplating distancing himself from the professional wrestling business, a field he has been actively involved in for over 50 years, per CNBC. Following the merger with UFC, McMahon is less involved in the creative process for WWE storylines.
Internally, his board position is seen as a potential source of unfavorable publicity for TKO. The company's latest SEC filings highlighted that McMahon's association with the company could lead to "adverse financial and operational impacts" on business operations.
After facing allegations of hush-money agreements related to alleged affairs with former WWE employees, McMahon resigned as CEO and chairman of WWE in June 2022, announcing his retirement from the company a month later.
His daughter, Stephanie McMahon, eventually assumed the roles of CEO and chairman. Surprisingly, McMahon returned to the company in the same capacity in January 2023, playing a pivotal role in negotiations with Endeavor regarding the merger with UFC.
The ongoing federal investigation into McMahon's alleged misconduct could present a significant risk to TKO's business.
Vince McMahon Net Worth
McMahon currently has a real-time net worth of $2.8 billion, according to business and financial outlet Forbes.
WWE has held a dominant position in professional wrestling for numerous decades and stands as the largest wrestling promotion in the world.
McMahon bought the company from his father in 1982, and he has also appeared on television as a villain on-screen character in storylines through the years.
The company has served as the launching pad for the careers of notable figures such as Dwayne "The Rock" Johnson, John Cena, Stone Cold Steve Austin, The Undertaker, and numerous other crossover stars.
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