WWE shares jump 22% as former CEO Vince McMahon announces surprise comeback
- WWE stock surged after boss Vince McMahon said he would return as executive chairman Thursday.
- McMahon announced a review into upcoming media rights negotiations and could reportedly be preparing to sell the company.
WWE stock soared Friday after Vince McMahon announced a surprise return to the company just six months after retiring over a sexual misconduct scandal.
Shares were up as much as 22% to $87.94 midday Friday. The move higher followed a Wall Street Journal report that former CEO McMahon would return to the publicly-listed entertainment company ahead of a potential sale.
McMahon said Thursday that he had re-elected himself as chair of WWE's board and expects to lead a review into upcoming media rights negotiations.
Former WWE co-presidents Michelle Wilson and George Barrios will also return to the company's board, according to McMahon's announcement.
The wrestling promoter is expected to start renegotiating the media rights deals for its flagship programs, USA Network's "Monday Night Raw" and Fox's "Friday Night SmackDown", later this year.
McMahon said he would lead those negotiations as WWE's executive chairman and would launch a strategic review into other possible broadcast partners.
"WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms," he said in a statement. "The only way for WWE to fully capitalize on this opportunity is for me to return as executive chairman."
McMahon owns 28.7 million WWE shares, meaning he holds a 37.6% stake in the company that is worth just under $2.1 billion.
He retired as WWE chief executive and chairman last year amid an ongoing internal board investigation into sexual misconduct claims against him.
The WSJ reported in July that McMahon had paid $12 million worth of hush money since 2006 to silence four women making sexual misconduct claims against him.
His daughter Stephanie McMahon and former company president Nick Khan became co-CEOs in the aftermath of his retirement in July.
Former pro wrestler Paul "Triple H" Levesque, who is married to Stephanie McMahon, also has a leadership role as WWE's chief creative officer.