WWE stock prices climbed to an all-time high after word about a pending television rights deal was revealed on Wednesday.
Stock prices for WWE climbed a whopping 17-percent with shares valued at $51 each and a total valuation on the professional wrestling company sitting at approximately $3.9 billion overall.
The surge in stock prices comes from news that broke on Wednesday that WWE is nearing a deal to keep ‘Raw’ on the USA Network with NBCUniversal reportedly willing to pay three times the current rights fees to keep the program. In addition to that news, WWE is also now expected to shop ‘Smackdown Live’ to a new network with FOX reportedly leading the bidding war to land the franchise.
With that kind of expected windfall, WWE stock prices went up dramatically and now sit 150-percent higher than this time last year when the company was trading at $19.66 per share. To put that in different terms, a $10,000 investment in WWE last year at this time would now be worth $25,000.
The biggest previous surge for stock prices with WWE came back in 2014 when the company was prepared to ink a deal for its last television deal. Unfortunately at that time, the stock prices proved to be rather erratic as WWE was preparing to launch the WWE Network.
At the time, WWE was moving all of their pay-per-view cards to the network, which would seemingly eliminate a huge source of income. Over time, however, WWE Network has proven to be a big winner for the company with subscriber numbers continuing to climb with each passing year.
The total valuation of WWE at $3.9 billion also puts the company in the same neighborhood as the UFC enjoyed back in 2016 just before selling to a conglomerate led by Endeavor, which ultimately purchased the mixed martial arts promotion for just over $4 billion.
There has been speculation that with WWE stock prices at an all time high that perhaps this could be the best possible time for WWE CEO Vince McMahon and his family to cash out with a potential sell to a network such as FOX or even Disney. FOX actually tried to buy the UFC back in 2016 but they were ultimately out bid by Endeavor.
McMahon sold off a portion of his own stock last year as he prepared to re-launch the XFL football league but there’s still no word if he would be willing to cash out completely and sell WWE to a new owner.
For now, investors will enjoy the surge in stock prices from this latest stock jump as WWE is now valued higher than ever before.
Do you think the McMahon’s will ever cash out and sell WWE or will this continue to be a family business for years to come?