New York Based Company Buys 4% Of WWE, Biggest Non-McMahon Ownership

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, a hedge fund, has bought 9.6 percent of WWE’s available stock, which is essentially stock not owned by the family, so it’s closer to four percent of the company itself, making them the biggest non- shareholder.

The New York-based company is best known for a successful campaign as stockholders that merged Men’s Warehouse and , which earned them a handsome profit.

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    (Partial Credit: Wrestling Observer Newsletter)

    • The Man From Jonestown

      Whoa, 4 percent? Looks like MVP is at it again!

      • Muhahaha

        Dude 4% is a lot and its also a pretty good foot in the door if you’re thinking hostile takeover. The McMahons may be looking at a battle in its near future. Vince better hope he has an effective poison pill in place.

        • http://www.sescoops.com Undertaker316

          lol 4% compared to the 70 or 80% vince owns 4% is nothing

          • Muhahaha

            Oh well yeah. I didn’t know Vince still maintained that level of voting power.Thanks for the knowledge.

          • Chris Gaudet

            I thought Vince only owned 59%… unless I’m mistaken

          • askbillmitchell

            4% is a lot influence. Vince could still be voted out and that is what he has to be cautious about. Carl Icahn only had approximately 10% ownership of Yahoo and he caused a proxy fight with the board of directors and caused several changes in management. Just something to keep in mind.

            • Brian Ward

              This doesn’t really mean that much because of the way WWE stock is set up. There’s two different kinds of stocks (Class A + B) Class A is common stock, Class B can only be owned by members of the McMahon family and they have much better voting rights than Class A (something like 10-1) Vince still controls about 75-80% of the voting power

            • askbillmitchell

              I know how the stock market works I used to work for a Fortune 500 company. I didn’t say anything about voting power by a stock owner, I know how that might have been misunderstood. I meant a proxy fight between the board of directors could occur and they could vote McMahon out, regardless of the amount of stock he owns.

            • rudy

              To vote him out, while possible, would be highly improbable under the company’s current Constitution and Bylaws. He’d have to be GROSSLY incompetent or inefficient. And the board would have to prove that it was wilful gross misconduct that materially damaged the company. Associated with this hypothetical matter would be gross negligence. Typically boards remove a chief for cause in cases of deliberate neglect of duties, gross misconduct, a felony conviction or company-related fraud. You’d have to burn the building down or have major, major embezzlement related charges to lose your chair.

            • askbillmitchell

              Misleading investors (if it is proven that intentionally mislead them that is) would serve as cause for expulsion.

            • rudy

              Yes, absolutely, not to mention the super duper lawsuits that would come with it. Plus permanent bar from nyse.

            • I’ve Lost My Smile

              lol they could never vote him out plus this post doesn’t even mention if the stock purchased comes with voting power

            • askbillmitchell

              The board of directors have a lot of rights given to them both as part of the companies bylaws and SEC law. Yes, the board of directors could vote him out, Rudy and I already one such scenario in which it is possible.

        • jake92

          Poison Pill? Are you talking about the nWo!?

        • rudy

          I agree! Not about the pill but 4% being a lot. Vince needs to thread carefully. He’s still the majority holder and is in no hazard whatsoever but if I was Vince Mcmahon i’d keep my eyes and ears wide open on this one. Eminence Capital is very political. They are a very influential fund In New York City. They have achieved close to a 13% net annual compounded return and had positive returns in the internet bubble and growth obsession of 1999 when most value investors were down in double digits. In 13 years of existence they’ve only had one down year (19%) and that was in the financial crisis of 2008 during the recession. Investors rewarded their performance by entrusting close to 3 billion dollars in their fund. No joke. And, as if it couldn’t get more political, the founders father was a big shot at one of the most politically charged monsters of our generation, Goldman Sachs. This is not an enterprise you want upset at your shareholders meeting.

          • I’ve Lost My Smile

            so based on their success are you saying that the WWE is or should be on the rebound otherwise why would they invest in a company they don’t have faith in?

            • rudy

              There are tons of motives for investing at wall street. Its a crazy political/financial world that takes on a life of its own. There are risks when you take your company public just as there are rewards. McMahon is a great CEO and a bulldozer when it comes to business. That’s why you see all these shocking turn of events on WWE programming as of late. His company is going to be just fine.

            • I’ve Lost My Smile

              No i understand that was just making a little point to counteract the sky is falling crowd, the fact that EC is investing in the WWE like this should be taken as good news because of their influence. While I don’t think they can make huge moves within the WWE I think it shows a lot of faith in the WWE as a brand, but if they can get to Vince and help him improve then I’m all for it.

            • rudy

              Yeah, one could take it to mean faith in the company, while others could take it as a means of influence within the company. While you’re right about them not being able to pull off ‘huge moves within the WWE’, they are now in a position where their voice and voted demands they are taken seriously within the company.

            • I’ve Lost My Smile

              I agree with you my man and I still think it’s a good thing to have them invested we can only hope good things come out of it.

            • rudy

              Absolutely, we must always be positive and keep our heads up;)

    • Fantasma Del Guapo

      “The New York-based company is best known for a successful campaign as stockholders that merged Men’s Warehouse and Jos. A Bank, which earned them a handsome profit.”

      A handsome, snappy dressed profit!