WWE Shares Are Crashing

WWE shares were down as much as 42% Friday after the wrestling group announced its new online TV network won't make up for lost pay-per-view and streaming video-on-demand business until 2015, Bloomberg reports.

It was the biggest drop since its IPO.

Here's Bloomberg's Rob Golum:

The WWE Network needs 1.3 million to 1.4 million subscribers to generate enough income to replace lost earnings from pay-per-view events, the Stamford, Connecticut-based producer of wrestling entertainment shows said yesterday in a statement. The WWE Network, which began operating on Feb. 24, finished the first quarter with almost 670,000 subscribers. The company said in April it was confident the WWE Network will reach 1 million subscribers this year, a goal Chief Financial Officer George Barrios reiterated in an interview.

Shares were trading at $11.30.