Want more from Front Office Sports
in your search results?
World Wrestling Entertainment has reached an agreement with certain investors to give 6.9 million shares of newly issued common stock and $3.9 million in cash in exchange for $171 million principal amount of WWE’s 3.375% convertible debt due this year.
The move from WWE to alleviate its existing debt comes as Endeavor announced its deal last month to acquire the wrestling firm in a merger with UFC. Endeavor will control 51% of the newly formed public company, which is expected to be listed under the TKO stock ticker symbol. Existing investors in WWE will control 49% of the new company.
Based on Monday afternoon’s trading price of $107.32, the newly issued shares of WWE’s stock would be worth about $740.5 million. After WWE’s exchange of shares and cash closes as expected on or around May 18, the company will have $42.7 million principal remaining in outstanding convertible debt due this year. WWE’s stock price has increased 58% since January.
Earlier this month, WWE reported Q1 2023 net revenue of $297.6 million and operating income of $53.1 million — an 11% and 43% decrease year-over-year, respectively. WWE’s broadcast deals worth a combined $500 million with NBC Universal and Fox both expire next year, putting Endeavor in lucrative position to capitalize on new media rights deals.
