Is the WWE for sale?

In a story that moves faster than Vince Russo's crash booking style of the 90s, Stephanie McMahon, the co-CEO and daughter of Vince, resigned from her position in the corporation the same day that her dad was officially welcomed back on the Board of Directors. As we know, the kingpin of sports entertainment strong-armed his way back into the organization after his initial request to return was declined by the other members. McMahon, who is still the controlling shareholder, informed the board that unless he was involved in the company again, he wouldn't approve of a new media rights deal, the WWE's most lucrative revenue stream, or any potential sale of the organization.

Freud would end up on the coach trying to talk through it if he attempted to analysis the eccentric billionaire, but what exactly is Vince's plan with all of this?

On one hand, this could simply be a power play for him to get his seat back in the board room, but considering that he retained his status as controlling shareholder all along, he technically didn't have to make a push to return. On the other hand, Vince might look to use this opportunity to attempt to define his legacy, instead of being another disgraced wealthy businessman that used his money and power to cover up affairs, his final bow in the public spotlight could be to cash out of his business with a mega deal worth billions of dollars. The millions he paid to hide his sleazy behavior would be chump change compared to the billions he could sell WWE for in the current market.

As I wrote in an article last week, if the WWE is actually sold, I'd be concerned for the future of the company because there is a well-documented history of non-wrestling executives not understanding the industry. Sports entertainment is a very unique commodity and you simply can't attempt to produce it like just another TV series. From a industry perspective, the WWE provides a foundation and stability for the rest of the business, and that's not a negative aspect of the corporation. With the news of Stephanie's resignation, especially with Triple H still as the head of creative, it appears that she's ready to cash out on WWE. That along with the fact that it was reported that the WWE board hired the JP Morgan firm to help start the process of a sale, as unthinkable as it might've been just a year ago, there could be a pro wrestling business without any McMahon family involvement.

However, assuming the promotion is sold, among the potential buyers, how they could realistically utilize the WWE property could have a major impact on the future of the organization.

When you take into account that Jeff Bezos usually doesn't have to pay taxes and that Amazon is already a global corporation with the capital to make a billion dollar purchase, that technically puts them in the conversation. From a business perspective, Amazon with it's Prime Video streaming service got into the content business, and it's investment to acquire the rights to the NFL's Thursday Night Football schedule proved that they were serious about getting a piece of the streaming pie. Granted, the quality of those Thursday night games often resembled Herb Abrams' UWF TV tapings, but the point is, when Amazon was willing to spend the amount of cash it takes to land an NFL schedule, you know that content is a priority. By nature, as we've seen with the Peacock deal, the WWE is a content machine more than anything else. That's why Netflix, a strictly streaming company would theoretically be a contender to purchase it as well. That said, both of these options would involve putting WWE content behind a pay wall, which wouldn't be a formula for success. Keep in mind, the WWE's goal and the majority of its vast revenue streams are based on the casual fans. The original WWE Network was proof that only a fraction of the television audience was willing to pay for WWE content.

Disney, a true powerhouse in the entertainment world and owner of several different media properties, including ESPN, is another one of those theoretical buyers because of its capital, networks, and content distribution. But, Disney is in a transitional period of its own as Bob Chapek, who replaced Bob Iger as CEO roughly two years ago, was shown the door recently so that Iger could return after he retired following an extensive tenure with the company. The 71-year-old Iger only agreed to return to the corporation for two years to help increase revenue and find a successor for the position. In recent months, among the controversy with Florida Governor, Ron DeSantis, Disney stock took a tumble because of lack of a return on its streaming investments. Despite the fact that a Disney purchase could put WWE programming on ESPN, which also has a deal with UFC, it wouldn't necessarily be a time frame where the company could justify spending five billion dollars for more assets. In short, Disney has more important problems than to buy a wrestling company.

 As far as possible networks, Fox was mentioned in the conversation because of the ratings Smackdown on the station, but I don't think that the network would want to get involved in the ownership of such a massive corporation. Fox has a steady line-up on syndicated programming and a major portion of the NFL schedule, along with baseball so I don't think they'd want to be full-fledged players in the sports entertainment business.

Before this Saudi news made waves, I would've said that NBC, which owns USA and is under the Comcast umbrella, would've been the buyer that might land the deal. NBC already has a major amount of money invested in the rights for Raw, the show that is the staple of USA, and the Peacock deal so a purchase of WWE would be a way to offset that costs with the ownership of the organization. Until the Saudi purchase is officially announced, I will still say that I think NBC probably has the best chance to buy the company.