WWE spiked 7% on Thursday afternoon based on a rumor that AMC Networks is interested in buying the company.
In the midst of WWE’s ongoing TV rights fees negotiations, AMC has been one of the companies interested in WWE programming, along with and Viacom and FOX. AMC Networks is the parent company of cable channels AMC, IFC, WE tv, and SundanceTV.
Financial blog Betaville was the first source to report on the story:
“Good sources tell me cable group AMC Networks has been sniffing around World Wrestling Entertainment Inc, the US-listed company behind those ridiculous wrestling programmes, such as WWF, Raw and Smackdown.
AMC Networks has held at least one exploratory conversation with WWE – which saw its shares rise by about 30pc during last week – about some kind M&A transaction in recent months, according to “people familiar with the matter”. However, the talks are understood to have not gone anywhere.
Another source said bankers from UBS have been advising AMC Networks, owner of Sundance TV, on a potential deal and financing options.
This well-placed source said any transaction may value WWE at between $2.6 and $2.8bn.”