April 3rd marked a huge day in professional wrestling as it was announced that WWE would be acquired by Endeavor and merged with UFC to form a new $21+ billion entity. Endeavor will own 51% of the new corporation while WWE owns 49%.
Talk of a WWE sale has been in the air for months, ever since Vince McMahon elected himself back to the board of directors back in January after retiring in July amidst allegations of sexual misconduct and hush money payments. Now, McMahon will serve as Executive Chairman of the Board of the new company, currently listed on the stock exchange as TKO. Dana White remains UFC President while former WWE CEO Nick Khan now serves as WWE President.
In the wake of the announcement, law firm Ademi LLP is launching an investigation into the company to determine whether the McMahon-led Board of Directors are fulfilling their duties to shareholders. The law firm put out the following press release:
MILWAUKEE, April 3, 2023 /PRNewswire/ — Ademi LLP is investigating WWE (NYSE: WWE) for possible breaches of fiduciary duty and other violations of law in its transaction with Endeavor.
Click here to learn how to join the action https://www.ademilaw.com/case/world-wrestling-entertainment-inc or call Guri Ademi toll-free at 866-264-3995. There is no cost or obligation to you.
Ademi LLP alleges WWE’s financial outlook and prospects are excellent and yet the transaction values WWE’s shares at only approximately $106 per share (before any post-closing dividend) with Endeavor holding a 51% controlling interest in the new company and existing WWE shareholders holding a 49% interest in the new company. The transaction agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. WWE insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of WWE’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for WWE.
If you own WWE common stock and wish to obtain additional information, please contact Guri Ademi either at gademi@ademilaw.com or toll-free: 866-264-3995, or https://www.ademilaw.com/case/world-wrestling-entertainment-inc.
We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights throughout the country. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.
News Of WWE’s Merger With UFC Saw Stock Prices Soar
The blockbuster announcement on April 3rd had a huge effect on WWE stock prices, with shares reaching a four-year high by the time the market closed on April 4th. WWE stock closed at $97.23, the highest it’s been since April 24th, 2019 when it closed at $98.50. The figure is an increase of 8.88% from closing on April 3rd.
It has also been reported by Forbes that Vince McMahon’s personal net worth has now risen to $3.1 billion.