Kemo
11-28-2023, 08:20 PM
Earlier this year, Vince McMahon forced his way back into WWE by sending a letter to the board stating he would be electing himself and two others (Michelle Wilson and George Barrios) to the board, thereby forcing three people to step down. He did so under the guise of wanting to oversee the sale of WWE, but it was a way for him to return to the company and be named Executive Chairman.
In September, WWE and UFC officially merged to become TKO. Endeavor received 51% stake, with WWE maintaining 49%. McMahon was indeed allowed to keep the title of Executive Chairman. He briefly returned to WWE's creative, much to the chagrin of employees and fans alike.
On a quarterly financial call, McMahon was listed as a "risk factor". On November 15, it was reported that McMahon sold 8.4 million shares of TKO Group Holding. His cash out was $641,844,000. He still owns roughly 12% of the company. The lawsuit was filed under seal two days later and was made public on November 22.
Monday night, it was revealed that there has been a lawsuit filed against McMahon, Paul "Triple H" Levesque, Nick Khan, Barrios, Wilson, and others because of WWE's "quick sale" to Endeavor. The suit says called it a "sham sales process" designed to keep McMahon is a position of power while giving Endeavor a sweetheart deal. It notes that Endeavor CEO Ari Emmanuel is a "close friend and long time ally" of McMahon.
The claim was filed in Delaware on behalf of former WWE investors by the Laborers' District Council and Contractors' Pension Fund of Ohio. They allege that there were at least two other cash offers that were better, but taking one of those deals would ensure McMahon would get the axe.
According to The Hollywood Reporter, McMahon wanted a deal that would let him stay at the helm. "Investors allege that merger was consummated at $95.66 per share, which fell below two competing, all-cash offers. (Those WWE suitors were redacted in the complaint. But the companies were described as “major institutions with significant access to capital” that had “compelling reasons to close an acquisition of WWE.” One of them likely had “significant runway to increase its offer due to the outsized synergies it could generate in a combination with” the company, the suit says.)"
The former board members believe that WWE is worth far more than the $21 billion it was sold for. "WWE only secured a budget for UFC’s current fiscal year rather than insisting on a full set of multi year projections, as is customary, despite agreeing to merger consideration that depended on valuing UFC accurately,"
In a report from Bloomberg Law, the lawsuit states the sale to Endeavor was an "unfair process led to an unfair price." The former board members also have an issue with the multi-million dollar payouts to Levesque, Khan, and Frank Riddick III, WWE's former chief financial officer.
Shares have also fallen significantly. Shares were $103 the day the WWE-UFC merger was closed. It fell to $78.50 on November 24.
There has been no comment from WWE as of this writing.
In September, WWE and UFC officially merged to become TKO. Endeavor received 51% stake, with WWE maintaining 49%. McMahon was indeed allowed to keep the title of Executive Chairman. He briefly returned to WWE's creative, much to the chagrin of employees and fans alike.
On a quarterly financial call, McMahon was listed as a "risk factor". On November 15, it was reported that McMahon sold 8.4 million shares of TKO Group Holding. His cash out was $641,844,000. He still owns roughly 12% of the company. The lawsuit was filed under seal two days later and was made public on November 22.
Monday night, it was revealed that there has been a lawsuit filed against McMahon, Paul "Triple H" Levesque, Nick Khan, Barrios, Wilson, and others because of WWE's "quick sale" to Endeavor. The suit says called it a "sham sales process" designed to keep McMahon is a position of power while giving Endeavor a sweetheart deal. It notes that Endeavor CEO Ari Emmanuel is a "close friend and long time ally" of McMahon.
The claim was filed in Delaware on behalf of former WWE investors by the Laborers' District Council and Contractors' Pension Fund of Ohio. They allege that there were at least two other cash offers that were better, but taking one of those deals would ensure McMahon would get the axe.
According to The Hollywood Reporter, McMahon wanted a deal that would let him stay at the helm. "Investors allege that merger was consummated at $95.66 per share, which fell below two competing, all-cash offers. (Those WWE suitors were redacted in the complaint. But the companies were described as “major institutions with significant access to capital” that had “compelling reasons to close an acquisition of WWE.” One of them likely had “significant runway to increase its offer due to the outsized synergies it could generate in a combination with” the company, the suit says.)"
The former board members believe that WWE is worth far more than the $21 billion it was sold for. "WWE only secured a budget for UFC’s current fiscal year rather than insisting on a full set of multi year projections, as is customary, despite agreeing to merger consideration that depended on valuing UFC accurately,"
In a report from Bloomberg Law, the lawsuit states the sale to Endeavor was an "unfair process led to an unfair price." The former board members also have an issue with the multi-million dollar payouts to Levesque, Khan, and Frank Riddick III, WWE's former chief financial officer.
Shares have also fallen significantly. Shares were $103 the day the WWE-UFC merger was closed. It fell to $78.50 on November 24.
There has been no comment from WWE as of this writing.