UPDATED: Company Buys Stake in WWE, Calls For New Management
Posted by Jeremy Thomas on 05.16.2014
They're making a move on the company...
UPDATED: For the record, Vince McMahon owns 57% of WWE's Class A stock, and 87% of WWE's Class B stock, meaning he has roughly 82% of the voting power. So any outside group buying WWE stock and trying to influence change may be able to pressure WWE a bit, but Vince McMahon is pretty much untouchable right now given the number of shares he owns.
ORIGINAL: A private investment firm is making a move on WWE following their hefty stock drop today. Seeking Alpha reports that Lemelson Capital, LLC announced that they had purchased a stake in the company and were calling on the Board of Directors to replace the current executive management team due to "a period of consistent losses, execution issues and material misstatements."
The firm shorted the stock two months ago and reiterated that fair value of WWE's common stock is between $8.25 and $11.88 with with the current executive management team in place. They said in the statement, "WWE has affirmed that even with one million subscribers for its WWE network, the company stands to lose between $45 million and $52 million in FY 2014, which validates the original short thesis. This follows what we believe to be material misrepresentations by the company about both the performance and operating profit model of its WWE network, which the company has wrongly labeled 'a homerun'"