Cool Wrestling News
McMahon Selling WWE?
Lemelson Capital founder Emmanuel Lemelson believes the McMahon family are ready to sell World Wrestling Entertainment. Lemelson, responsible for managing one of the world’s largest hedge funds, told Benzinga that the company is “clearly an acquisition target.”
He is of the opinion a new management team or company sale will likely play out in future and believes the company is in a particularly “special situation” right now, noting it has excellent creative management but poor fiscal management. Lemelson was positive about the company’s branding and international appeal but did offer the opinion that the company’s assessed value of $1 billion is flawed, saying they were likely worth that prior to the launch of the WWE Network. On the subject of the Network, he said:
“The OTT network was a brilliant idea, but the timing and execution from a strategic partnership perspective were wrong, The real value of WWE is not the OTT network; it’s the moat around its brand and prospective earnings power under the right fiscal leadership.”
Lamelson noted that the third quarter results, which will be revealed this week on the traditional quarterly call, will not likely have much impact on the stock price either way.
Source: Wrestling Observer
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