WWE (NYSE: WWE) has formally hired outside counsel to assist in its process of analyzing strategic alternatives for the company. The development follows the exit of co-CEO Stephanie McMahon and the return of former CEO Vince McMahon over the course of the last week.
The return of Vince McMahon was revealed exactly one week ago, when an SEC filing published by the entertainment firm indicated that the former CEO would be returning to the company in the role of Executive Chairman after a several month absence, driven by the discovery of “hush money” payments made by the company. For what its worth, all of the then-current directors reportedly disagreed with the decision, with five members exiting the board, three of which were voluntary departures.
READ: WWE Is Back! Vince McMahon Returns to Board Following Hush Money Scandal
In announcing his return, McMahon indicated that it was a result of the company undergoing strategic alternatives, which were said to include a potential sale, with McMahon also focused on becoming involved in media rights deals and efforts to maximize shareholder value.
“These actions will enable unified decision making through the Issuer’s upcoming media rights negotiations and a parallel full review of the Issuer’s strategic alternatives,” read the Schedule 13D filing made in connection with the announcement.
To assist in these strategic alternatives, the firm has reportedly retained The Raine Group as financial advisors, Kirkland & Ellis LLP as legal advisors, and August LLC as strategic communications advisors in connection with the strategic review.
“WWE’s upcoming media rights cycle will take place amid a rapidly evolving media and entertainment landscape, and we believe exploring our strategic alternatives at this critical juncture will enable WWE to fully capitalize on the significant value of our intellectual property,” commented McMahon on the appointment.
The appointment also follows reports that the entertainment firm was rumoured to have been sold to Saudi Arabian interests, specifically the Saudi Arabian Public Investment Fund. An agreement in principle was reportedly met earlier this week according to online reports. At the same time, Stephanie McMahon, co-CEO and chairwoman of the company, has made her exit from the company, with Nick Khan to take on the CEO exclusively going forward.
READ: Stephanie McMahon Steps Down As WWE Rumored To Have Been Sold To Saudi Arabia
Further comments from the WWE on strategic direction were not provided, with additional details slated to be released when “appropriate or required.”
WWE last traded at $89.34 on the NYSE.
Information for this briefing was found via Reuters, Edgar, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
