Will WWE Ever Sell? Lachapelle Breaks It Down

Loading...
Loading...

A New York Post report said media mogul John de Mol has offered to buy World Wrestling Entertainment, Inc. WWE, but it's unclear whether WWE chairman, CEO, controlling shareholder Vince McMahon is ready to sell.

The report said De Mol's Talpa Beheer last year acquired a 6 percent stake in the WWE. Tara Lachapelle, a Bloomberg Gadfly columnist, elaborated on the potential sale of WWE.

"WWE's profit last year was just $24 million, the amount of free cash flow a company like Walt Disney Co DIS can generate in a few days. And WWE caters to a niche audience, even if they're a very loyal crowd. But that's precisely why, as McMahon plans his succession, he might want to think about selling to a larger company that can try to extract even more value from this niche and safeguard its longevity while keeping his family on the team," Lachapelle wrote.

Related Link: WrestleMania Exceeded Even PacCrest's Expectations: WWE Worth $20/Share

She continued, "Not that Disney is necessarily the best suitor for WWE, but what it's done with older Marvel comic-book superheroes and the "Star Wars" franchise shows the opportunity that exists with WWE's library of characters."

However, Lachapelle pointed out that WWE may be too "tiny" for Disney and the wrestling world "doesn't quite fit the type of family-friendly content Disney is known for."

Lachapelle also noted that WWE may also be too small for Comcast Corporation CMCSA, whose NBC Universal airs WWE's "Monday Night Raw" on its USA Network, "Friday Night Smackdown" on Syfy and "Total Divas" on E!

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: CNBCSportsMediaGeneralBloomberg GadflyTara Lachapelle
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...