It’s confirmed! Vince McMahon to rejoin WWE’s board. See how stock behaved

Former CEO and majority shareholder Vince McMahon will rejoin the board of World Wrestling Entertainment, the company confirmed on Friday.

In a press release, WWE executives said on Friday that they announce that the founder of WWE, Vince McMahon, will be returning to the Board.

After the news of the reinstatement of the McMahon spread, the company’s stock spiked 20%. In the last year, the shares of the company are up by 75%.


This comes as McMahon had on Thursday made an announcement that he wanted to reinstate himself as executive chairman. He had also said that he will launch an effort to sell the company.

McMahon had also said that he intends to bring back former co-presidents Michelle Wilson and George Barrios as board directors.

Jeffrey Speed, JoEllen Lyons Dillon and Alan M. Wexler, who are the current board members, were removed from their posts. Man Jit Singh and Ignace Lahoud, who are additional directors, resigned from the board effective Friday.

Earlier, McMahon was forced to step down from the post of the CEO when an investigation revealed that he had paid around $15 million to four women over 16 years to not voice claims of sexual misconduct.

McMahon, who is a majority shareholder, maintained control over the company even in his absence. “McMahon can effectively exercise control over the affairs of the company,” the WWE said, in a regulatory filing in November.

As WWE faces negotiations over strategic initiatives and media rights moving forward, McMahon may have seen a need to return to his board position, as per media reports.

The company has been spotted as a target for acquisition lately. In a note on Friday, the analysts at MKM Partners, which has a buy rating on the stock, said that an immediate exploration of a sale for the company will make a lot of sense.

On Friday, the WWE confirmed that it would review strategic alternatives, but also said that there is no assurance that this process will result in a transaction.

FAQs

1. What does WWE stand for?
   World Wrestling Entertainment
2. How much did WWE's stock spike up after it was confirmed that Vince McMahon is joining the board?
   About 20%