Vince McMahon, former WWE boss.Photo by Getty Images
- Veteran pro wrestling promoter Vince McMahon retired from the WWE on July 22.
- CNBC said the retirement and scandals "heighten sale speculation."
Vince McMahon stepped down as the longtime CEO and chairman of pro wrestling market leader WWE on July 22.
The 76-year-old's resignation followed reports of federal investigations into allegations that the veteran promoter paid millions of dollars in hush money to cover up claims of sexual misconduct, per The Wall Street Journal.
The Journal added that these investigations hastened McMahon's departure.
Despite the industry-shaking development, stock in WWE rose 8% on a single day last week to levels not seen since 2019.
As of Monday, it is trading at $70.93 per share.
Wrestling Inc. reported last week that this could mean investors are speculating on a possible sale.
CNBC also said that WWE is at a "crossroads," as McMahon's retirement and scandals "heighten sale speculation."
It referenced WWE's new co-CEO Nick Khan, who said earlier this year — before McMahon stepped down — that "we're open for business," when discussing selling the business during an episode of The Ringer's 'The Town' podcast.
CNBC also cited "a source familiar with the matter" said that the company isn't currently in sale talks.
Regardless, that doesn't mean that a number of big American companies might not consider making a move for the $5 billion WWE, multiple reports suggest.
Here are five of the companies speculatively linked with a bid.
Comcast — a $194.3 billion conglomerate
Mike Blake/File Photo
CNBC wrote this week that Khan talked about Comcast's NBCUniversal as a potential buyer.
WWE recently sold exclusive live streaming rights to NBCUniversal's Peacock service, suggesting it could be a good fit.
Khan said that what Comcast lacks is the "intellectual property that some other companies have," like Disney's "treasure trove of IP."
Khan said: "I think they look at us as an entity that has a treasure trove of intellectual property. A lot of it has not been exploited yet.
"Now it's up to us to monetize it properly and show the community exactly what we have."
In a note to clients, MKM Partners analyst Eric Handler also said Comcast, amongst other companies, makes sense as an acquirer, CNBC reported.
Alan Gould of Loop Capital told Deadline, though, that Comcast may be loathe to commit to such a deal after spending $39 billion on its acquisition of Sky.
Disney — a $188.5 billion mass media company
In this photo illustration, a hand holding a TV remote control in front of the Disney Plus logo on a TV screen. Rafael Henrique/SOPA Images/LightRocket via Getty Images
In Handler's note to MKM Partners clients, the analyst also referenced Disney as a potential WWE buyer.
Through ESPN's broadcast deals with UFC, PFL MMA, and Top Rank boxing, Disney already has a hulking combat sports portfolio.
Adding WWE, Deadline observes, could be a logical companion to broaden its offerings in those sports.
Gould of Loop Capital said Disney, like Comcast, may be loathed to commit to another acquisition, having already bought 20th Century Fox and Hulu.
Amazon — a $1.23 trillion technology company
An Amazon logo is displayed on a fulfillment center. Being the world's largest online retail company, Amazon operates more than 175 fulfillment centers worldwide, totaling in over 166 million square feet. Gabe Ginsberg/SOPA Images/LightRocket via Getty Images
The MKM Partners analyst Handler also listed Amazon as a potential acquirer — something longtime media analyst Gould, of Loop Capital, agreed with.
Deadline noted that Amazon has been buying the rights to sports programming.
The streamer has tennis deals in place to air ATP World Tour events in the UK, exchanged terms with MLB giant New York Yankees, and has the exclusive rights to "Thursday Night Football" with the NFL.
Being so bullish on sports rights, it may not balk at the WWE's estimated $5 billion valuation.
Netflix — a $100 billion subscription streaming service
Streaming service Netflix (NFLX) carries thousands of movies and TV shows Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images
Another company that both Gould and Holding agree could be interested in making a play for WWE is Netflix.
Deadline, though, reports Netflix is not as likely a suitor as the aforementioned juggernauts as it typically airs films and TV shows. "It has avoided sports and event programming," Deadline said.
However, the publication noted that WWE is unlike most sports companies as it is a blend of entertainment and sports. This could work in its favor.
Handler lists 3 other companies — one of them is Apple
Apple logo at an Apple store on May 31, 2022 in Berlin, Germany. Thomas Trutschel/Photothek via Getty Images
In his note to clients, Handler listed three other companies that could be interested in making a play for WWE.
Here they are:
- Apple — a $2.5 trillion technology company
- Warner Bros. Discovery — a $36.7 billion media giant
- Paramount Global — a $16 billion mass media firm
Gould's final pick was:
- Fox — an $18 billion mass media company
According to Deadline, Fox may not be able to justify the likely $5 billion purchase of WWE as its valuation is not too much higher.
Likewise, Paramount Global could run into a similar issue; its market cap on Thursday was around $15.5 billion.
WWE will look attractive right now, an analyst said
WWE belt. Photo by Getty Images
"This is a challenging environment with the equities of most of the logical buyers depressed, but there is demand for live event programming, and it is the first time that one could realistically think that WWE could be for sale," Loop Capital's Gould told Deadline.
CNBC, meanwhile, reported that there are very few global entertainment companies that come up for sale with a seemingly attractive price tag.
WWE may well be one of those few companies.
Though CNBC said WWE isn't currently in sale talks, "flood gates" may soon open and an offer could become too good to turn down, the publication said.