Endeavor Group Holdings is making WWE and UFC into a tag team, with a deal creating a new public company that will operate both combat sports franchises and will be 51% owned by Endeavor and 49% owned by WWE shareholders.

The deal values the new company at $12.1 billion. The combination of WWE and UFC had revenue of $2.4 billion in 2022.

The new company will be led by Ari Emanuel as CEO. Emanuel will also continue in his role as CEO of Endeavor. WWE executive chairman Vince McMahon will be executive chairman of the board and Mark Shapiro will be president and chief operating officer of both Endeavor and the new company. Dana White will continue in his role as president of UFC and Nick Khan will serve as president of WWE. The board of directors will consist of 11 members who will be appointed at a later date, six of whom will be appointed by Endeavor and five of whom by WWE.

“This is a rare opportunity to create a global live sports and entertainment pure-play built for where the industry is headed,” Emanuel said. “For decades, Vince and his team have demonstrated an incredible track record of innovation and shareholder value creation, and we are confident that Endeavor can deliver significant additional value for shareholders by bringing UFC and WWE together.”

WWE had announced plans to explore strategic alternatives in January, signaling that McMahon, who had grown the company, was ready to sell. 

The deal was timed as WWE media rights come up for renewal. It has deals with NBCUniversal and Fox for its weekly shows Monday Night Raw on USA Network and Friday Night SmackDown on Fox, while live events currently appear on NBCU’s Peacock streaming service. UFC’s events are carried on The Walt Disney Co.’s ESPN and ESPN Plus.

McMahon retired as chairman and CEO of WWE last July amid a probe of payments he made to a WWE employee with whom he allegedly had an affair. McMahon returned to the company as executive chairman and repaid the company $17.4 million to cover the payments and the investigation into the misconduct.

“Given the incredible work that Ari and Endeavor have done to grow the UFC brand — nearly doubling its revenue over the past seven years — and the immense success we’ve already had in partnering with their team on a number of ventures, I believe that this is without a doubt the best outcome for our shareholders and other stakeholders,” McMahon said. 

Under terms of the deal, Endeavor will contribute its UFC unit to the new company. The transaction values WWE at about $106 a share. UFC and WWE will contribute cash to the new company, which will hold $150 million. Shareholders of the new company, excluding Endeavor, are expected to receive a post-closing dividend.

By combining, the companies expect to be able to create cost synergies of $50 million to $100 million. Endeavor also said it expects significant growth across revenue areas including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing and premium hospitality. 

The transaction has been unanimously approved by the executive committee of Endeavor’s board of directors and by the board of directors of WWE. 

The deal is expected to close in the second half of 2023, the companies said. ▪️

WWE said it has hired advisers to help the company as it reviews strategic alternatives as previously announced.

The Raine Group will act as a financial adviser, Kirkland & Ellis will be a legal adviser and August LLC will handle strategic communications, according to a filing with the Securities & Exchange Commission.

In the past few weeks, WWE founder Vince McMahon has returned to the company. He has become WWE’s executive chairman and repopulated the board as he announced a strategic review that could lead to the sale. 

“WWE’s upcoming media rights cycle will take place amid a rapidly evolving media and entertainment landscape, and we believe exploring our strategic alternatives at this critical juncture will enable WWE to fully capitalize on the significant value of our intellectual property,” McMahon said. 

“I am highly confident that our outstanding directors, outside advisers and executive team will provide valuable expertise and counsel to help guide the company through this important process while our management team and employee base continue to deliver results and content our fans love,” he said.

WWE said there would be no assurances about the outcome of the strategic review and that it would not comment further until the process concludes. ■

WWE said that its board of directors unanimously elected Vince McMahon executive chairman of the board.

Last week, the wrestling company announced that it would explore “strategic alternatives,” indicating the company could be for sale.

McMahon’s daughter, Stephanie McMahon has resigned as chairwoman and co-CEO of WWE. Nick Khan, who had been co-CEO, will serve as CEO.

Last year, Vince McMahon retired as chairman and CEO of WWE in the wake of investigations into payments made to a former WWE employee with whom McMahon allegedly had an affair. 

McMahon last week returned to the board, bringing two other directors with him and removing three directions using his power as controlling shareholder of the company. Two other directors resigned.

“First, I’d like to express my full support for Stephanie’s personal decision. I’ll forever be grateful that she offered to step in during my absence and I’m truly proud of the job she did co-leading WWE,“ Vince McMahon said. “Stephanie has always been the ultimate ambassador for our company, and her decades of contributions have left an immeasurable impact on our brand.

“I’m proud to announce that Nick Khan will serve as WWE CEO. Nick’s business acumen and mastery of the media industry have helped catapult our business to record revenue and profitability. Together, we look forward to working with the Board at this critical moment in time to review our strategic alternatives and maximize value for all WWE shareholders,” McMahon said.

WWE stock jumped after McMahon’s return and the announcement that the company would explore strategic alternatives. WWE shares hit a 52-week high on Tuesday and closed at $90.24, up 2.73%. 

“Stephanie McMahon is a terrific executive and an even better person. It has been an honor to serve as Co-CEO with her. She will only continue to succeed,” Khan said. “I’m grateful to Vince McMahon and our Board of Directors for their ongoing support. I look forward to continuing to work closely with them and my WWE colleagues to ensure our company may thrive as the premiere powerhouse in sports entertainment for years to come.” ■

WWE said Vince McMahon will be returning to the wrestling company’s board of directors and the company will be exploring “strategic alternatives.” 

The news sent WWE stock up more than 16% to $84.19 in early Friday trading -- its highest price in a year.

WWE’s wrestling programming runs on Fox and Comcast’s USA Networks. It also streams via Comcast’s Peacock.

McMahon retired as chairman and CEO of WWE in July amid probes of payments to a former WWE employee with whom McMahon allegedly had an affair. 

When McMahon stepped down, his daughter Stephanie McMahon became chairman and co-CEO with Nick Kahn.

 "WWE has an exceptional management team in place, and I do not intend for my return to have any impact on their roles, duties, or responsibilities," McMahon said.

WWE said that Michelle Wilson and George Barrios were also returning to the company’s board of directors. McMahon as controlling shareholder of the company removed JoEllen Lyons Dillon, Jeffrey R. Speed and Alan M. Wexler from the Board, Ignace Lahoud and Man Jit Singh also resigned from the Board, effective Friday.

“In connection with the change in the composition of the Board of Directors and in cooperation with Vince McMahon as majority shareholder, the Company intends to undertake a review of its strategic alternatives with the goal being to maximize value for all WWE shareholders. There is no assurance that this process will result in a transaction,” the company said. ■

World Wrestling Entertainment said former chairman and CEO Vince McMahon incurred unrecorded expenses totaling about $14.6 million and that the company will be reviewing its financial statements for 2019, 2020 and 2021 to reflect those expenses, which will be paid personally by McMahon. 

Previous reports indicate that some of the payments went to a departing employee with whom McMahon allegedly had an affair. McMahon announced his retirement from WWE on Friday.

The company said an investigation into alleged misconduct by McMahon remains ongoing.

In a filing with the Securities and Exchange Commission, WWE said the payments might not be material in any of the quarters in which they occurred, but if taken as a group, they would be material in the most recent quarter.

The company said it hoped to complete the review and issue financial statements by August 9, but it said there was no assurance it would be able to meet that deadline.

“In light of the Unrecorded Expenses and related facts, the company expects to conclude that its internal control over financial reporting was not effective as a result of one or more material weaknesses,” WWE said. “The company continues to evaluate the appropriate accounting treatment for the Unrecorded Expenses, as well as its internal control over financial reporting and its ultimate conclusions on these topics may differ from what the company currently anticipates.”  ■

Wrestling titan Vince McMahon on Friday announced his retirement as chairman and CEO of WWE. McMahon had “stepped back” from his executive responsibilities last month while charges of misconduct were being investigated.

The Wall Street Journal reported that the board was looking into a secret $3 million settlement McMahon agreed to pay to a departing employee with whom he allegedly had an affair.

Also: WWE Reviews Financial Reports to Reflect Payments By McMahon

When McMahon stepped back, his daughter Stephanie McMahon became interim CEO and chairman. She will serve as chairman and co-CEO now that Vince McMahon has retired. Nick Khan will also be co-CEO.

Earlier on Friday, Stephanie McMahon's husband, Paul “Triple H” Levesque, said he would be resuming his executive position as executive VP of talent relations.

After stepping back, McMahon continued to work on WWE’s content and appeared on Smackdown on Fox. A WWE spokesman Friday said that McMahon is now “fully retired” from the company. 

“As I approach 77 years old, I feel it’s time for me to retire as Chairman and CEO of WWE. Throughout the years, it’s been a privilege to help WWE bring you joy, inspire you, thrill you, surprise you, and always entertain you. I would like to thank my family for mightily contributing to our success, and I would also like to thank all of our past and present Superstars and employees for their dedication and passion for our brand,” McMahon said in a statement. “Most importantly, I would like to thank our fans for allowing us into your homes every week and being your choice of entertainment.”

While he said the company was in capable hands with his daughter and Khan, “as the majority shareholder, I will continue to support WWE in any way I can. My personal thanks to our community and business partners, shareholders, and board of directors for their guidance and support through the years. Then. Now. Forever. Together.”  ■

WWE’s board said Vince McMahon has “stepped back” from his responsibilities as CEO and chairman of the company while charges of misconduct are investigated and that Stephanie McMahon will serve as interim CEO and chairman.

The Wall Street Journal reported that the board was looking into a secret $3 million settlement McMahon agreed to pay to a departing employee with whom he allegedly had an affair.

“I have pledged my complete cooperation to the investigation by the Special Committee, and I will do everything possible to support the investigation. I have also pledged to accept the findings and outcome of the investigation, whatever they are,” Vince McMahon said in a statement.

The board said it was investigating McMahon and John Laurinaitis, head of talent relations at WWE. McMahon will retain his role and responsibilities related to WWE’s creative content. WWE said McMahon will appear on Smackdown Friday night on Fox.

In May, McMahon’s daughter, Stephanie McMahon, said she was stepping down from her role as CMO of WWE along with her husband, the wrestler and executive Paul Levesque.

“I love this company and am committed to working with the Independent Directors to strengthen our culture and our Company," she said in a statement. “It is extremely important to me that we have a safe and collaborative workplace. I have committed to doing everything in my power to help the Special Committee complete its work, including marshaling the cooperation of the entire company to assist in the completion of the investigation and to implement its findings.” ■

WWE and Blumhouse Television will develop a scripted series based on WWE chairman Vince McMahon.

The limited scripted series, The United States of America Vs. Vince McMahon, will delve into the government’s 1994 indictment of McMahon for allegedly supplying anabolic steroids to WWE talent, according to the pro wrestling outfit. The series marks the first scripted series for  the WWE and the first scripted portrayal of the organization’s longtime chairman. 

Read Also: WWE to Offer New Year's Day Event 

Blumhouse Productions CEO Jason Blum along with Blumhouse TV President and former USA president Chris McCumber will develop the series. 

“We have a dramatic, riveting saga – one that’s crazier than fiction – that will appeal to the cross-section of Blumhouse and WWE fans,” said McCumber in a statement. “To say I’m thrilled about collaborating again with WWE is an understatement.”

Added WWE Executive Producer and Chief of Global Television Distribution Kevin Dunn: “Jason [Blum], Chris and their team at Blumhouse create amazing work and we look forward to delivering an inside look into one of the most pivotal moments in our company’s history.”

McMahon, Blum, McCumber, Dunn and Jeremy Gold will serve as executive producers for the series, said WWE. 

WWE chairman and CEO and XFL founder Vince McMahon claims that former XFL CEO Oliver Luck is "stonewalling" in his wrongful termination suit against the league founder by refusing to answer a sheaf of questions regarding his use of a company iPhone, which McMahon and his lawyers claim prove the former league chief was slacking off on the job.

Luck, a former NCAA and NFL executive, was hired as CEO of the XFL, McMahon’s second attempt at creating a rival to the National Football League, in 2018. The league launched on Feb. 8, 2020  but canceled its season on March 12 of that year because of the pandemic. 

The XFL fired Luck on April 9, 2020, a day before the rest of the league's employees were let go, for what they said was cause, claiming Luck’s gross negligence and a willful disregard of the lawful instructions of Mr. McMahon. On April 13, 2020 the XFL filed for bankruptcy protection. Luck sued Alpha Entertainment, the vehicle that officially owned the XFL, and McMahon, who had personally guaranteed his compensation, in federal court in Connecticut on April 16, 2020. 

Last August, the XFL was purchased by a group including former wrestler and current movie star Dwayne "The Rock" Johnson, his ex-wife Dany Garcia and RedBird Capital for about $15 million. 

McMahon countersued Luck in January, and in a filing with the court on July 14, claimed that Luck has refused to answer questions related to his use of a company-issued cell phone. That phone is crucial for two reasons: McMahon claims that Luck used the phone for personal use, a violation of company policy, and it also contains text messages and emails that the WWE chief says proves that Luck was not adequately performing his job. 

McMahon's attorneys submitted a 50-page affidavit of questions relating to the cell phone use to the court, primarily asking the former CEO to confirm which emails and texts were sent on every day between March 13 and April 9. According to McMahon's attorneys, Luck's responses have been “evasive.”

Luck apparently has refused to voice his "contentions" regarding each email and text, which McMahon's attorneys believe would help the court differentiate between ones he claims reflect his work for the league and those that do not. 

In the July 14 filing, McMahon and Alpha attorneys allege that by responding to its requests with "baseless objections and evasive responses," Luck is "stonewalling" its efforts to discover what constitutes XFL-related work he has done and to "narrow the scope of disputed issues related to those contentions."

Luck’s attorneys have said many of the questions are burdensome, oppressive and overly broad, according to court filings. In several cases they objected to questions asking whether Luck had sent emails on certain dates because they don’t include about 95 emails sent to or from him that were excluded by McMahon and Alpha Entertainment on grounds of attorney/client privilege. 

McMahon's and Alpha's attorneys say Luck's actions are an attempt to "hide the ball on his position as to the evidence of his XFL and non-XFL work."

The July 14 dispute is just the latest in what has been a series of discovery disputes between the parties. In June, Luck asked to depose the partner in the law firm that headed the investigation that led to his firing. Alpha and McMahon have opposed that motion, which is still pending before the court.

Seven Bucks Companies, the film and TV production entity headed by Dwayne “The Rock” Johnson and his ex-wife Dany Garcia, and RedBird Capital, the private equity company led by former Goldman Sachs partner Gerry Cardinale, have agreed to buy troubled sports league the XFL in a deal valued at about $15 million.

The XFL filed for bankruptcy protection in April, shortly after it canceled its season due to the coronavirus pandemic. At the time, the league reported assets of between $10 million and $50 million. 

The bid came on the day the bankruptcy court was scheduled to begin an auction for the XFL assets. In light of the bid, that auction will not take place.

The XFL, created by World Wrestling Entertainment chairman and CEO Vince McMahon, has struggled to eke out a niche as an alternative to the NFL. While the earlier version of the XFL crashed and burned after one season in 2001 amid low ratings and a string of bad luck, the latest iteration was supposed to be a more serious, fast-paced, fan-centric and family-friendly football league. In June 2018 McMahon hired former NFL and NCAA executive Oliver Luck as commissioner and CEO of the league, and tapped sports business consultant Jeffrey Pollack as president and chief operating officer.

Pollack was in charge of the auction process. In a press release he was pleased with the outcome.

“We are grateful for today’s outcome,” Pollack said. “This is a Hollywood ending to our sale process and it is an exciting new chapter for the league. Dwayne, Dany and Gerry are a dream team ownership group and the XFL is in the best possible hands going forward.”

Johnson and Garcia, a former Merrill Lynch exec, formed Seven Bucks Companies in 2012, which has mainly produced films and television properties for Johnson. This will be the company’s first foray into live sports. 

The deal is expected to close quickly. Seven Bucks said in a press release that the bankruptcy court will hold a hearing to approve the transaction on Aug.7, and with a favorable ruling the deal could close on or shortly after Aug. 21.

“For Dwayne, Gerry and myself, this property represents an incredible opportunity. It is the confluence of great passion, tradition and possibility” Garcia said in a press release. “Sports and entertainment are the foundations of the businesses I have built. Melding our expertise combined with our commitment to deliver exciting and inspiring unique content, has us all focused on developing the XFL brand into a multi-media experience that our athletes, partners and fans will proudly embrace and love.”

Johnson, a former professional wrestler, parlayed his fame into a career as an actor and entrepreneur. In addition to starring in blockbuster films like Jumanji and TV shows like HBO series Ballers, he is CEO of Seven Bucks Cos.

“The acquisition of the XFL with my talented partners, Dany Garcia and Gerry Cardinale, is an investment for me that’s rooted deeply in two things - my passion for the game and my desire to always take care of the fans,” Johnson said in a press release. “With pride and gratitude for all that I’ve built with my own two hands, I plan to apply these callouses to the XFL, and look forward to creating something special for the players, fans, and everyone involved for the love of football.”

Cardinale and RedBird have been involved in several sports deals -- it was part of the team that purchased YES Network last year and last month purchased an 85% interest in French soccer club Toulouse. Also in July, RedBird formed a special purpose acquisition corporation -- RedBall Acquisition Corp. -- with Oakland A’s executive Billy Beane to raise $500 million to invest in sports properties. 

“It is a privilege to partner with Dany and Dwayne on the acquisition of the XFL,” Cardinale said in the press release. “Their track record in building dynamic businesses speaks for itself, and their vision and passion for developing the XFL as a world class sports and entertainment property will enable a new future for this organization. As their partner in acquiring and relaunching the XFL, RedBird will bring its own track record and experience in building world class companies in sports and live entertainment to help realize their vision.” 

A group led by former WWE Superstar Dwayne “The Rock” Johnson has agreed to buy Vince McMahon’s XFL for $15 million.

According to Sportico, Johnson and RedBird Capital will split the alternative football league, which looked to revive itself this year but was crushed by the coronavirus.

The XFL filed for bankruptcy in April and was put up for sale. An auction was expected to begin on Monday.

In the bankruptcy filing, Alpha Entertainment listed assets of $10 million to $50 million and liabilities in the same range.

Started by McMahon with NBC, The XFL played one season in 2001. 

McMahon announced plans to revive the league in 2018 and it started play earlier this year. The XFL drew more than 3 million viewers in its first week. The audience was about half that number in its fifth and final week before the shutdown.

World Wrestling Entertainment said it has named Kristina Salen as chief financial officer of the scripted sports giant, replacing Frank A. Riddick III, who was serving in an interim role. She will report directly to WWE chairman and CEO, Vince McMahon.

Salen’s appointment is effective Aug. 3, WWE said. Riddick, a WWE board member, took over as interim CFO in January after former co-presidents George Barrios and Michelle Wilson abruptly resigned.

Salen had served as CFO of online retailer Etsy from 2013 to 2017, and in 2017 and 2018 was CFO and chief operating officer of artist services and music distribution company United Masters. Since 2018 she has been CFO of online luxury fashion retailer Moda Operandi and earlier in her career served in financial analyst positions with Oppenheimer Capital, Merrill Lynch Investment Managers and Lazard Freres & Co.

According to Securities and Exchange Commission documents, Salen will receive an annual base salary of $730,000 and will be eligible to earn annual cash incentive awards under WWE’s management incentive plan with a target incentive of 50% of her base salary. She will also receive restricted stock units of WWE’s Class A common stock worth $500,000.

The battle between XFL owner Vince McMahon and Oliver Luck continued to heat up this week, with McMahon claiming his former CEO abandoned his duties as the COVID-19 pandemic canceled the alternative football league’s regular season, used a company-issued iPhone for personal use, and signed troubled players.

Luck, a former NCAA and NFL executive, was hired by McMahon to run the fledgling league in June 2018.  The league launched on Feb. 8, but canceled its season on March 12 because of the pandemic.

On April 9, a day before the rest of the league’s employees were let go,  the XFL fired Luck for what they said was cause, claiming “gross negligence” and a “willful disregard of the lawful instructions of Mr. McMahon” concerning his duties as CEO. The XFL filed for Chapter 11 bankruptcy protection on April 13. 

Luck sued McMahon in Connecticut federal court on April 16, for wrongful termination.

According to an affidavit filed on May 13, Luck claims he is owed no less than $23.8 million, including $800,000 in base salary owed for the remaining two months of the 2020 season, a $2 million guaranteed bonus, $15 million in salary for the remaining three years on his contract and $6 million in guaranteed bonuses for the remaining three years on his employment deal. Luck added that he is also owed additional amounts for benefits through June 30, 2023, according to the contract.

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In the termination letter -- which was filed as an exhibit in Luck’s affidavit -- McMahon and XFL parent Alpha Entertainment claims of “gross negligence” by the former CEO included his decision to sign former Cleveland Browns wide receiver Antonio Callaway to an XFL contract with a “substantial” signing bonus of $125,000. According to the letter, Luck made the signing without permission from McMahon, who had requested he sign off on players with questionable backgrounds. Callaway had past drug use problems (mainly for marijuana) and run-ins with the law.

The letter continued that Luck failed to terminate Callaway immediately, and he was later injured in a practice session with the XFL’s Tampa Bay Vipers, leading to medical and worker’s compensation costs “well in excess of six figures.”

Luck countered that McMahon was well aware of Callaway’s signing, and that the deal was made as part of the XFL owner’s directive to attract higher quality players. Luck added that it was the XFL’s policy to “refrain” from testing for marijuana, and to reject players from the pool that could be drafted only if they had a felony conviction or a conviction for dealing drugs; had multiple misdemeanor convictions establishing a pattern; or if a credible allegation of sexual assault or domestic violence had been made against him.

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“Callaway did not fit into any of those categories and was not disqualified under XFL policies that were in place at the time he was signed to play in the XFL,” Luck claimed in the document.

When McMahon informed Luck during the week of Jan. 26 that he wanted Callaway terminated, Luck said he did just that.

“He [Callaway] never played a down in the XFL,” Luck’s affidavit claims.

McMahon also claimed that Luck “failed to exhibit any of the vigor and work ethic required of a CEO of a start-up enterprise in these trying times,” failing to devote “substantially all of [his] business time to the performance of [his] duties since March 13th, which itself is grossly negligent under the circumstances.”

In his affidavit, Luck said he did return home to Indiana on March 13, but that the league closed its offices on Sunday March 15 and ordered all staff to work from home because of the pandemic. On March 20, Connecticut Gov. Ned Lamont issued a stay-at-home order in the state, asking all non-essential businesses to have their employees work from home.

As far as the cell phone, McMahon claims that when his lawyers asked Lack to return the iPhone issued to him, he failed to do so. Later, McMahon claims, Luck’s attorneys asked bankruptcy court counsel if there was a company policy about personal use of the phone.

“There was such a policy,” McMahon claims in his filing. “Thus, that phone and its contents are now evidence supporting Luck’s termination for cause.”

According to the suit, McMahon -- who also is the chairman, CEO and controlling shareholder of professional wrestling conglomerate WWE -- personally guaranteed Luck’s compensation. That is likely the reason the former CEO is suing McMahon individually instead of the bankrupt league. 

Oliver Luck, the former NFL quarterback and commissioner and CEO of the XFL, has sued league owner Vince McMahon, claiming wrongful termination.

Luck was hired last year and his pedigree -- he is a former NFL and NCAA executive -- added some needed credibility to the fledgling league.

According to the heavily redacted suit, filed April 16 in U.S. District Court in Connecticut, Luck was terminated by the XFL on April 9, a day before the league laid off the majority of its workforce. On April 13, the XFL filed for Chapter 11 bankruptcy protection, listing assets of and liabilities of between $10 million and $50 million. 

Luck reportedly signed a five-year deal worth about $20 million to run the league, and believes he is owed at least a portion of that. In the suit he claims that Alpha Entertainment, the vehicle that officially owns the XFL, “repudiated” his employment agreement. He adds that McMahon sent him a termination letter on April 9, the day before the league laid off most of its workers. 

Although the letter was redacted in the suit, Luck said he “wholly disputes and rejects the allegations set forth in the Termination Letter and contends they are pretextual and devoid of merit,” according to the document

Luck’s suit also comes days after the XFL asked the court to approve a process to sell its assets via an auction tentatively scheduled for July.

McMahon has agreed to provide debtor-in-possession financing of about $3.5 million to get the league through the sales process. That DIP financing is contingent on the court approving the auction sales process by May 15, and finalizing a sale by July 15.

Related: WWE Initiates Furloughs, Pay Cuts in COVID-19 Response 

According to bankruptcy court documents, the auction for the XFL assets -- mainly its name, trademarks and other intellectual property -- could start on July 8.

Just who would buy the assets remains to be seen. While the league enjoyed strong ratings when it launched on Feb. 8, viewership declined steadily in later weeks. Some reports have speculated that the NFL could buy the XFL and run it as an instructional league for new recruits, much like the NBA’s D-league. 

World Wrestling Entertainment said it has initiated a string of cost-cutting measures, including worker furloughs and executive pay cuts, in an effort to shave $4 million per month in expenses amid the COVID-19 pandemic.

In a press release WWE said it has undergone an extensive evaluation of its operations in the past several weeks as the coronavirus has impacted nearly every business segment in the country. As a result, WWE said it would implement several short-term measures to reduce costs and improve cash flow, including:

• Reducing executive and board member compensation;
• Decreasing operating expenses;
• Cutting talent expenses, third party staffing and consulting;
• Deferring spend on the build out of the company’s new headquarters for at least six months.

Related: Trump Puts WWE in Major League Conversation

WWE said it also would furlough a portion of its workforce immediately, but declined to say how many workers would be affected. The company added that it believes the furloughs “will be temporary in nature.”

The company also said that it has come to terms with several wrestlers to release them from their contracts, including stars like Kurt Angle, Drake Maverick (James Curtin), Curt Hawkins (Brian Myers), Karl Anderson (Chad Allegra), Luke Gallows (Drew Hankinson), Heath Slater (Heath Miller), Eric Young (Jeremy Fritz), EC3 (Michael Hutter), Aiden English (Matthew Rehwoldt) and Lio Rush (Lionel Green).

“We wish them all the best in their future endeavors,” WWE said in a press release.

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The moves, especially the decision to suspend construction on its new headquarters in Stamford, Connecticut,  are expected to improve cash flow by $140 million. WWE said it has substantial financial resources -- including available cash and debt capacity of about $500 million -- to weather the economic storm created by the coronavirus pandemic.

The news comes just a few days after the XFL, the alternative football league that was the brainchild of WWE chairman and CEO Vince McMahon, filed for bankruptcy protection. In those documents, it was revealed that WWE owns a 23.5% interest in the XFL. 

WWE said it would offer further details when it reports first quarter results, expected on April 23.

About four weeks after officially canceling its season because of the coronavirus, the XFL has suspended operations, laid off most of its work force and reportedly has no plans to return in 2021.

News of the XFL shutdown was first reported by ESPN. 

The XFL launched on Feb. 8, but the league canceled its season on March 12 amid the coronavirus pandemic. On March 15, the league revealed that one of its players, a member of the Seattle Dragons, had tested positive for COVID-19 in early March. 

This was to be the second attempt at creating a new football league for World Wrestling Entertainment chairman and CEO Vince McMahon. While the earlier version of the XFL crashed and burned after one season in 2001 amid low ratings and a string of bad luck, the latest iteration was supposed to be a more serious, fast-paced, fan-centric and family-friendly football league. In June 2018 McMahon hired former NFL and NCAA executive Oliver Luck as commissioner and CEO of the league, and tapped sports business consultant Jeffrey Pollack as president and chief operating officer.

The hope was the league, which had no connection to McMahon’s WWE, would be able to compete as a summer league for football fans. While ratings for its inaugural games were high, later contests attracted a smaller number of viewers.

XFL officials did not respond to requests for comment, but according to several reports, Pollack informed employees of the decision to shutter the league in a 10-minute conference call Friday. Several employees took to twitter to say they had been let go.

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The White House clearly recognizes professional wrestling as a body slamming, turnbuckle-buckling force to be reckoned with. 

In a telephone call with what the White House characterized as "commissioners of major league sports," the President included Vince McMahon, president of WWE (World Wrestling Entertainment).

That was alongside Gary Bettman, commissioner of the NHL; Cathy Engelber, commissioner of the WNBA; Roger Goodell, commissioner of the NFL; Jay Monahan, commissioner of the PGA; Adam Silver, commissioner of the NBA and others. 

Related: ESPN to Air Classic Wrestlemania Events 

According to the White House, Trump discussed the league's approaches to the "all-America" response to COVID-19, while the commissioners "thanked President Trump for his national leadership and for his interest in the sports industry." 

Trump's relationship with McMahon dates back to at least the 1980s, when Wrestlemania was held in Atlantic City. Trump even once helped shave McMahon's head as part of a Wrestlemania stunt.  

The President also named McMahon's wife, Linda, head of the Small Business Administration, though she has departed that post. 

According to reports, Trump told the NFL in the call he hoped it would start its season on time. No word on whether he pushed WWE to get those big bodies back in the squared circle. 

World Wrestling Entertainment stock continued to fall last week, even as chairman and CEO Vince McMahon repeatedly hinted that a deal concerning its WWE Network streaming service could be imminent.

WWE stock was down nearly 30% between Jan. 30, when it announced the firing of co-presidents George Barrios and Michelle Wilson, and its Feb. 6 earnings results. Although WWE reported some of its strongest financial growth ever in Q4 (revenue was up 18% and cash flow up 67%, mainly on the deal with Fox for WWE SmackDown engineered by Barrios and Wilson), investors were more concerned with the future. The scripted sports company’s guidance for 2020 was considerably lower than what analysts had expected. WWE said adjusted OIBDA, a measure of cash flow, would be in the $250 million to $300 million range for 2020, well below consensus estimates of $390 million.

That low guidance doesn’t take into account expected carriage deals in India and the Middle East but nonetheless spooked investors, who drove the stock down as much as 15% in early trading Feb. 6, ending the day at $44.50 each, down 9%. The slide continued on Feb. 7, with the stock falling another 4.2% to close at $42.62.

While investors continued to worry about the management shakeup and the reduced guidance, they also were concerned whether WWE was ready to throw in the towel on its streaming service, WWE Network. Launched in 2014, WWE Network peaked at about 2.1 million subscribers in 2018. In Q4, that base had dropped to about 1.5 million. Initially, some critics feared the streaming service would cannibalize its other businesses — particularly pay-per-view — something the company said it would strive to avoid. Now, with declining membership, that may have changed.

WWE said prior to the call that it was evaluating strategic alternatives for WWE Network, which usually means it is pursuing a sale. That is an option, but McMahon said the company could also keep it as is, or form a partnership. He repeatedly interjected during a conference call with analysts that “the majors” are “clamoring” for WWE content. If the company did decide to do a licensing deal, he said, it could announce it before the end of next month.

“We’d be announcing that deal, if we go that way, in the first quarter,” McMahon said. “That’s how far along we are.”

McMahon also was open to the idea of an ad-supported version of WWE Network. He said if the decision is to keep the service as is, WWE would consider pursuing ads. That makes sense, especially since The Walt Disney Co. revealed in its fiscal Q1 results that streaming service Hulu generates about $13 in month revenue per subscriber per month for a $5.99 service.

While Hulu has an $11.99 per month ad-free option, Disney chief financial officer Christine McCarthy said on the company’s earnings call that most of the service’s 30.5 million subscribers opt for the ad-supported service.

But WWE content has been on the skids in the past several months, with ratings down and fans complaining of tired storylines. Several script writers have left the fold and McMahon has vowed to inject more excitement into the programming. On the conference call, he mentioned a culture change at WWE — to become more inclusive — and pointed to changes that have already been made to bring in new talent and improve ratings.“You can see there is growth there,” McMahon said, adding that past problems were exacerbated by a rash of injuries to top talent last year.

FBN Securities media analyst Robert Routh said that he believes the panic around WWE is a bit overdone, adding that ratings have started to improve, partly because it has a broadcast outlet (Fox) reaching a larger fan base. And he expects that McMahon has a deal up his sleeve.

“It sounds like he [McMahon] has something transformational that he could do if he wants to but he hasn’t decided yet. The question is who is it that might have offered him a ton of money to own WWE Network or to bundle it with what they have?” Routh said, adding that WWE content could be attractive to streaming services like Hulu, Netflix or NBCUniversal’s Peacock.

‘SmackDown’ Ratings Down

In a blog post, LightShed Partners media analyst Brandon Ross said viewership for SmackDown on Fox has been light, averaging about 2.4 million weekly viewers instead of the 3-million-plus most analysts expected.

Righting the WWE ship will be critical over the next three years, Ross wrote, because that’s when Monday Night Raw, which airs on NBCU’s USA Network, and SmackDown enter their next renewal cycle. With the shift in overall TV viewership toward streaming, the analyst predicted total pay TV subscribers could be reduced to as few as about 70 million, substantially reducing the WWE’s negotiating leverage.

“Vince McMahon, the pressure is on,” Ross wrote.

VINCE’S DILEMMA

WWE chairman and CEO Vince McMahon laid out the future of WWE Network to analysts:

1. Maintaining the Status Quo: WWE continues to run the streaming service “as is,” with the possibility of adding advertising, a move McMahon said he would “definitely consider.”

2. Adding ‘Free’ and ‘Enhanced’ Tiers to WWE Network: A free option was quietly introduced in December, offering nonsubscribers access to some short-form content, and McMahon said a pricier “enhanced” tier also could be on the table. WWE Network costs $9.99 per month.

3. Licensing WWE Network content to ‘the majors’: WWE Network has a ton of pay-per-view and library content that would likely be attractive to several networks and OTT providers. McMahon said that there is high interest from “the majors” for WWE content, and the company could potentially announce a deal before the end of the first quarter (March 31). “That’s how far along we are,” he said.

With its stock cratering after announcing it was looking into “strategic alternatives” for its WWE Network, World Wrestling Entertainment chairman and CEO Vince McMahon said the five-year-old streaming network has several options, including a potentially “transformative” deal with a major network over-the-top provider that could happen as early as the end of the first quarter.

WWE stock has been in the dumps since Jan. 30 when the company abruptly fired two top executives -- co-presidents George Barrios and Michelle Wilson -- and shares fell 21%. The stock fell another 18% Thursday morning after revealing lower than expected 2020 guidance and that it was evaluating strategic options for the streaming service. 

Since the call, WWE stock has regained some of that ground -- it closed at $44.50 each on Feb. 6, down 9.2% ($4.50 each).

On a conference call with analysts to discuss Q4 results, McMahon said a decision for WWE Network hadn’t been made, but offered several options for its future, including a sale, keeping the service as is, or striking a licensing deal for its content with other major networks and/or OTT service providers. The WWE chief seemed to lean toward the last option, adding that if WWE Network decided to go that route it could have a deal in place by the end of March.

“We have a lot of options,” McMahon said on the call. “We can continue on as we are now with an enhancement like a free tier or an enhanced paid tier. Right now there is no better time to exercise the selling of our rights to all the majors, and quite frankly all the majors are clamoring for our content. That could be a significant increase in terms of revenue.”

Later McMahon said if WWE Network were to pursue an OTT deal, it would be done by as soon as the end of Q1.

“We’d be announcing that deal, if we go that way, in the first quarter,” McMahon said. “That’s how far along we are,” he said.

McMahon added that if WWE decided to continue with the network as is, adding commercials or some form of sponsorship is an option.

“If we continue on with the network pretty much as is, we are definitely going to consider that,” McMahon said.

McMahon also added some more color to the reasons behind Barrios’ and Wilson’s departure, adding that their differences were around focus, execution and reallocations of resources. He added that WWE is in the midst of transforming its culture.

McMahon said WWE’s new management culture will be more inclusive, adding that the company has hired an outside search firm to look for replacements for Barrios and Wilson, as well as looking internally. In the meantime, he added that he can handle the extra load.

“At the moment, I have a few more direct reports. Going forward that will not be the case in terms of allocating my time,” McMahon said. “I have pretty broad shoulders and I can handle a lot.” 

With its stock cratering after announcing it was looking into “strategic alternatives” for its WWE Network, World Wrestling Entertainment chairman and CEO Vince McMahon said the five-year-old streaming network has several options, including a potentially “transformative” deal with a major network over-the-top provider that could happen as early as the end of the first quarter.

WWE stock has been in the dumps since Jan. 30 when the company abruptly fired two top executives  -- co-presidents George Barrios and Michelle Wilson -- and shares fell 21%. The stock fell another 18% Thursday morning after revealing lower than expected 2020 guidance and that it was evaluating strategic options for the streaming service. 

Since the call, WWE stock has regained some of that ground -- it was down 8.6% ($4.20 each) to $44.81 at around noon. 

On a conference call with analysts to discuss Q4  results, McMahon said a decision for WWE Network hadn’t been made, but offered several options for its future, including a sale, keeping the service as is, or striking a licensing deal for its content with other major networks and/or OTT service providers. The WWE chief seemed to lean toward the last option, adding that if WWE Network decided to go that route it could have a deal in place by the end of March.

“We have a lot of options,” McMahon said on the call. “We can continue on as we are now with an enhancement like a free tier or an enhanced paid tier. Right now there is no better time to exercise the selling of our rights to all the majors, and quite frankly all the majors are clamoring for our content. That could be a significant increase in terms of revenue.”

Later McMahon said if WWE Network were to pursue an OTT deal, it would be done by as soon as the end of Q1.

“We’d  be announcing that deal, if we go that way, in the first quarter,” McMahon said. “That’s how far along we are,” he said. 

McMahon added that if WWE decided to continue with the network as is, adding commercials or some form of sponsorship is an option. 

“If we continue on with the network pretty much as is, we are definitely going to consider that,” McMahon said.

McMahon also added some more color to the reasons behind Barrios’ and Wilson’s departure, adding that their differences were around focus, execution and reallocations of resources. He added that WWE is in the midst of transforming its culture. 

McMahon said WWE’s new management culture will be more inclusive, adding that the company has hired an outside search firm to look for replacements for Barrios and Wilson, as well as looking internally. In the meantime, he added that he can handle the extra load.

“At the moment, I  have a few more direct reports. Going forward that will not be the case in terms of allocating my time,” McMahon said. “I have pretty broad shoulders and I can handle a lot.” 

World Wrestling Entertainment stock started to inch back this week, rising more than 3% in early trading Tuesday but still far short of reversing the 27% decline of the shares since it fired two top executives a week before it is scheduled to report Q4 results.

WWE shares were priced at $48.97 each in afternoon trading Feb. 5, 3.4% above their closing price the day before, when they rose another 2.8%. The shares are still well behind their price on Jan. 30 ($62.30), when the company announced its co-presidents George Barrios and Michelle Wilson had abruptly left the company. News that the well-liked and respected executives were gone, and a statement from the company that they had differences as to the direction of the company with chairman and CEO Vince McMahon, sent the stock into a tailspin. WWE stock fell 21% on Jan. 31 to $48.88 per share and another 6% on Feb. 1 to $46.08 per share.

“I am grateful for all that was accomplished during their tenure, but the Board and I decided a change was necessary as we have different views on how best to achieve our strategic priorities moving forward," McMahon said of Barrios’ and Wilson’s departure in a press release.

That has led to some wild speculation about the executives’ departure, none of which has been substantiated.  But if nothing else, it appears that McMahon, who has come under criticism as WWE ratings have plunged, will have a lot to answer to during its Q4 earnings call on Feb. 6.

Already some analysts have chimed in, and many will likely try hard to make sense of the changes and seek solutions to the scripted sports giant’s ratings decline. But as one pundit put it, the responsibility will ultimately land in McMahon’s lap.

WWE has been on shaky ratings ground for awhile. Although Barrios and Wilson were praised earlier this year for landing a carriage deal for its SmackDown programming with Fox, ratings have been poor. And they’ve been poor for awhile.

Still, Barrios and Wilson had been the public face of WWE, and losing two seasoned executives at a time when the traditional TV market is in constant turmoil is not something investors would cheer. Over the past 12 months, WWE shares have declined 43%, from $82.34 on Jan,. 31, 2019.

Related: WWE: Suspending Disbelief

Injuries to top talent like Roman Reigns and AJ Styles were blamed for ratings softness last year, but those wrestlers have since returned and the viewership numbers haven’t gotten better. 

In a blog post, LightShed Partners media analyst Brandon Ross said despite the changes McMahon has already made, engagement with WWE content is disappointing and ratings at its flagship SmackDown are down even after it moved to Fox.

“We anticipated at least 3 million weekly viewers given the increased reach of broadcast TV and the breadth of Fox’s substantial promotion platform,” Ross wrote. “Viewership has settled in at ~2.4 million per week.”

Ross added that he has no knowledge of the circumstances behind Wilson’s and Barrios’ departures or even if they should bear any if the blame for WWE’s ratings slump.

“However, what we do know is that content needs to improve at WWE if the company is going to be investible,” Ross wrote. “And no matter who comes in to take the place of the former Presidents, the burden of improving the content sits squarely on Vince, who has held tight control over the creative at WWE for decades.”

Righting the WWE ship will be critical over the next three years, Ross wrote, pointing out that is when Monday Night Raw and SmackDown enter their next renewal cycle.

“While the stars aligned last deal for rights to be bid up, we are very skeptical a remotely similar demand backdrop will exist,” Ross wrote. “The entirety of the $465 million per year WWE is receiving domestically comes from the Pay TV universe, where subscriber losses continue to accelerate.”

Ross added that by the time talks start again for the programming, pay TV subs could be in the 70 million range, substantially reducing the WWE’s negotiating leverage.

“Vince McMahon, the pressure is on,” Ross wrote.

World Wrestling Entertainment chairman and CEO Vince McMahon sold more than 3.2 million WWE shares on March 27, raising about $272 million to help fund Alpha Entertainment, the main vehicle for the new XFL football league he plans to launch in 2020.

According to an 8-K document filed with the Securities and Exchange Commission, McMahon sold the shares (at a price of $84.50 per share) in a single block trade on March 27. Investment bank Morgan Stanley served as the sole bookrunning manager for the transaction.

According to the SEC document, McMahon made the sale to fund Alpha Entertainment, a private entity he established in 2017 to explore investments in the sports and entertainment area, including the XFL launch. The document added that McMahon has informed the company he has no intention of selling additional stock and will remain as WWE’s chairman and CEO.

The block represented about 4.1% of WWE’s total outstanding Class A and Class B shares. After the sale McMahon beneficially owned about 28.7 million shares of WWE Class B common stock, representing about 80.1% of the company’s total voting power and 36.8% of its total outstanding shares.

McMahon announced his intention to reboot the XFL in January.  The eight team league -- slated to play in NFL cities New York, Washington D.C., Los Angeles, Houston, St. Louis, Seattle, Dallas and Tampa Bay -- is expected to play its first games on Feb. 8-9, 2020, offering a more fan-centric and family-friendly experience at a faster pace. In June the XFL named former NFL quarterback Oliver Luck as commissioner. 

WWE shares were down as much as 1% ($1.87 each) to $83.90 per share. The stock narrowed that gap in later trading -- it was priced at $84.24 each (down 63 cents, or 0.7%) at 12:17 p.m. on March 28.

“Although some investors may view this as negative for WWE, we don’t think they should as it is clear in the SEC filing that Mr. McMahon does not plan to sell any more of his WWE equity anytime soon,” wrote FBN Securities analyst Robert Routh in a note to clients. He added that WWE has a $500 million share repurchase program in place that could take advantage of any downturn in the stock price. 

WWE has named George Barrios and Michelle Wilson as co-presidents, the company said Thursday (Feb. 8).

Wilson, formerly chief revenue and marketing officer, and Barrios, formerly chief strategy and financial officer, have also been appointed to the company’s board of directors, according to the WWE.

RELATED: WWE's Vince McMahon to Reboot XFL

“The successful transformation of our business model has put us in a position to capitalize on all that the changing global media landscape has to offer,” said WWE chair & CEO Vince McMahon in a statement. “I am confident that our executive management team, led by Michelle and George, will achieve continued success across key strategic initiatives and ensure our long-term growth.”

RELATED: WWE's 'Raw' Celebrates 25th Anniversary 

WWE said it has had four years of record revenue and launched its subscription video-on-demand service (WWE Network) to augment a core business that includes TV programming, such as WWE Raw, and pay-per-events (Wrestlemania).

WWE chair Vince McMahon will take another shot at scoring on the professional football field with the 2020 relaunch of the XFL pro football league. 

McMahon said Thursday (Jan. 25) during an afternoon press conference that he will look to reshape the XFL -- which ran for one season in 2001 in a joint venture with NBC -- into a new, reimagined format that will be "fan-friendly" and exciting. 

McMahon said the XFL will look to secure traditional network as well as digital distribution, but has yet to secure any deals.

McMahon said the league will listen to experts to help put the best product out on the field.

“We want to give fans more of that they want to see and less of what they don’t want to see,” he said.

McMahon said the eight-team league will be fully-owned by his company Alpha Entertainment and will play from late January into the spring, but would not reveal the cities in which the league will look to field teams.

The league will also feature no crossover talent from McMahon’s WWE franchise.

MCN Flashback: Vince McMahon: WWE's Ringmaster

He added that XFL games will be likely be condensed to two hours -- much quicker than the current three-hour average National Football League games – including the possible elimination of the traditional halftime period.

McMahon also said that the NFL's woes over declining ratings and political controversies did not factor into his decision to relaunch the league. He added that players with crimminal records will not be allowed into the league, and that players will most likely be required to stand during the national anthem.

"It will have nothing to do with politics and social issues ... we want really good football," McMahon said "That’s what we’re going to deliver."

WWE chief brand officer Stephanie McMahon has arguably replaced her entrepreneurial father Vince McMahon as the face of the brand.

She’s worked with key executives to help push WWE’s brand footprint outside the ring, fostering the move into reality series with E!’s Total Divas and spinoff series Total Bellas, as well as expanding into digital with the 2014 launch of WWE Network.

Related > Flying High: How Wrestling Is Fueling TV Ratings [subscription required]

Showing off its financial muscle, WWE reported a 10% increase in revenue during first-quarter 2017 compared to the prior year. Further, the company said it “continues to target record financial results for 2017, specifically adjusted operating income of $100 million.”

SVOD service WWE Nework now has nearly 1.5 million global subscribers, according to the company, up 16% from first-quarter 2016. USA Network’s weekly WWE Monday Night Raw remains one of the most-watched series on cable, averaging more than 3 million viewers so far this year, while the Tuesday-night series WWE SmackDown has posted strong rating gains since its move from Syfy last year.

Multichannel News programming editor. R. Thomas Umstead spoke with McMahon last week via phone from London — where she and WWE were preparing for live telecasts of the May 8 Monday Night Raw and May 9 SmackDown — to get an overview of the thriving business as well as the challenges and opportunities that WWE faces. Here’s an edited transcript of their conversation.

MCN:What has propelled WWE’s strong performance in 2016 and thus far in 2017?
Stephanie McMahon: First of all, we have, you know, one of the best executive teams that we have had in a very long time. When you consider the fact that the WWE has grown into a $729 million business, things are working for us.

Nearly 30% of that revenue came from our international business, so that means our international expansion is working. In 2010 nearly 30% of our business was direct-to-consumer, and today it’s more than 50 percent, so our direct-to-consumer strategy is certainly working. In 2010, 6% of our business was digital, and today it’s more than 30%, so again it’s our businesses itself and the people driving it. They are laser-focused on our different strategies for growth, whether that be content and our tiered ecosystem, or sales and sponsorship.

But ultimately the secret sauce is truly our fan base. Our fans cheer, they boo, they chant … they actually help influence what happens in the ring. A lot of what we do is improv, and that’s where the performance art aspect comes in. Without our fan base, we don’t have a show, and that’s one of the reasons why social media has been so strong for WWE. We have over 780 million social media followers, which means their engagement with us continues outside of the ring. From a business standpoint we’re able to utilize the data analytics that we get from the WWE Network, from social media, from live events and even from merchandise sales to help influence the direction of our content and super-serve our audience.

MCN:In which areas of the business do you see the most growth potential in 2017?
SM: We’re really focused on international and we’re focused on content because again we want to super-serve our fan base through localized content. I was in Dubai just last week, announcing our first ever Arabic local-language show. We’re here in the U.K., where we’re shooting Monday Night Raw and SmackDown live at the O2 in London, where we’re also shooting localized content that will ultimately drive viewership into our NXT Takeover [episode] featuring the U.K. championship. So it really is localized content super-serving our fanbase in as many ways possible, along with international growth.

MCN:Having said that, what are the greatest challenges facing the WWE going forward?
SM: Well, I think the opportunities are the same as the challenges. From a technology standpoint we want to be able to offer fans everything that they’re asking for, and the biggest frustration comes when the technology just isn’t there yet to do it. But we’re constantly driving and pushing our partners to help make sure that that happens. Again, serving the appetite of our audience is really our greatest opportunity as well as our greatest challenge, because the more we provide them the hungrier they get.

MCN:Are you concerned at all about competition within the wrestling category given the proliferation of pro-wrestling content in the marketplace?
SM: Well I think imitation is the truest form of flattery, but I don’t think the viewership with some of those other organizations at this point is competition for us. If anything I think it just drives more interest in the genre itself. When you look at reality shows like Total Divas or Total Bellas, and when you look at films like our partnership with MGM for [theatrical film] Fighting With My Family, the story of [WWE wrestler] Paige’s life, I think we’re really just scratching the surface of the deeper stories that these individuals, as well as their characters, have to tell.

If you can’t beat ’em, buy ’em.

With the two major distribution mergers of the past year — Charter Communications-Time Warner Cable and Cablevision Systems-Altice N.V. — heading for the finish line, some analysts wonder if content could be the next beehive of activity on the deal front.

Greasing the speculation wheels: Comcast’s $3.8 billion pact to buy DreamWorks Animation, which some believe could encourage other TV distributors to take a harder look at the programming space.

The DreamWorks Animation deal could shed new light on programming targets, BTIG media analyst Brandon Ross said in a blog post, especially as distributors look for new ways to differentiate themselves from the growing list of over-the-top providers. DreamWorks was just the first in what could be a series of content deals, Ross said.

SUITORS FOR PARAMOUNT STAKE

Viacom has said it has more than a dozen potential suitors for the planned sale of a minority interest in movie studio Paramount. And talk heated up in April that mixed martial arts content provider Ultimate Fighting Championship was for sale. Reports in the MMA industry press said UFC could be worth as much as $6 billion.

Ross said the potential jewel in the content heap could be World Wrestling Entertainment, the scripted sports entertainment juggernaut headed by Vince McMahon. While neither WWE nor McMahon has even hinted at being interested in a sale, Ross said the time could be right to give some serious thought to it.

WWE makes sense for a strategic buyer on several fronts. Its content is popular with young viewers (Monday Night Raw is a consistent ratings draw for USA Network), it has a strong digital presence with the over-the-top WWE Network and, at a total valuation of about $1.3 billion, it’s digestible for larger players.

Comcast’s willingness to pay a premium for DreamWorks Animation — about 20 times cash flow — to basically take out controlling shareholder and CEO Jeffrey Katzenberg indicates it might be willing to act similarly with McMahon.

Keeping Vince McMahon around would be critical to any deal with WWE, Ross said. A strategic investment might be the best way to make a deal happen.

FBN Securities cable, satellite and entertainment managing director Robert Routh thinks the chances the McMahons would sell are slim. Besides, he said, content-hungry distributors have several other potential targets.

Routh does not think the Comcast-DreamWorks deal will necessarily lead to more content acquisitions by Comcast: federal regulators would probably prevent that. And with NBCUniversal already in the fold, Comcast probably doesn’t need more content.

Pairing content and distribution used to be more commonplace. For example, Time Warner Inc. owned both Time Warner Cable and Turner Broadcasting Systems and Tele-Communications Inc. was paired with Liberty Media. Those companies and their successors eventually split programming and distribution assets after synergies became less apparent.

“It’s kind of like Back to the Future,” Routh said. “Distributors are starting to say that owning content with distribution, under the right conditions, can make a ton of sense, especially if it’s highly focused content.”

CHART: Back to the Future

Pay TV operators, once keen on divesting programming assets from their distribution business, may be looking at adding content to the mix as they seek to further differentiate themselves from OTT competitors. Here are a few possible candidates for consolidation.

Company                       Market Cap                                                   Top Content

Starz . . . . . . . . . . . . . . .$2.67 billion . . . . . . . . . . . . . . . . . . . . . . . . . . . Starz, Encore

Scripps Networks . . . . . $7.87 billion . . . . . . . . . . . . . . . . . . . . . HGTV, Food Network

Viacom . . . . . . . . . . . . . $16.5 billion . . . . . . . . . MTV, Comedy Central, Nickelodeon

AMC Networks . . . . . . . $4.6 billion . . . . . . . . AMC, IFC, WE tv, BBCA, SundanceTV

MGM . . . . . . . . . . . . . . . $3.5 billion . . . . . . . . . . . . . . . . . . . . . . . . . . . . thisTV, EPIX

WWE . . . . . . . . . . . . . . . $1.27 billion . . . . . . . . . . . . . . . . . . . . . . . . . . WWE Network

Lionsgate . . . . . . . . . . . $3.26 billion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . EPIX

DHX Media . . . . . . . . . $762.6 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . SuperWhy!

RLJ Entertainment . . .  $8.06 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Acorn TV

SOURCES: FDM Securities, Dow Jones, Multichannel News estimates

World Wrestling Entertainment stock has taken a hit over the past few days in the wake of a 60-day suspension of an African-American wrestler who playfully grabbed CEO Vince McMahon’s arm briefly during a telecast, and a drop in subscribers at its online service WWE Network.

The twitter-verse lit up Wednesday night after WWE suspended wrestler Titus O’Neil for what it called “unprofessional conduct” after the wrestler grabbed McMahon’s arm during a taping of WWE’s Monday Night Raw in Seattle. The incident was not shown on the official broadcast – subscribers to its WWE Network were able to catch a glimpse though – and after news of the suspension hit, several versions of the video were widely available on the Internet. 

Many fans saw the suspension – initially a 90-day suspension that was reduced by 30 days – as a racist move by the controversial CEO. WWE denied the suspension was racially motivated.

“The suspension of Titus O’Neil had nothing to do with race and everything to do with unprofessional conduct,” the company said in a statement to the New York Post.

The WWE also sent the post a copy of a text they said O’Neil sent the organization “‘I feel like sh** now so if you have to let me go, I understand. Stupid mistake.’”

O’Neil (his real name is Thaddeus Bullard) graduated from the University of Florida and played football for the Gators (1997-1999) as a defensive tackle under head coach Steve Spurrier.  He is well-known for his charity work and is one of the more well-liked wrestlers on the circuit.

The O’Neil move likely played a role in WWE’s stock dipping on Feb. 10 – it fell 4.4% (72 cents each) to $15.75 per share from $16.47 the previous day.

While the incident did keep social media humming for awhile, the real hit to the stock occurred the following day (Feb. 11) when shares dipped as much as 10% after WWE revealed that subscribers for its WWE Network fell to 1.2 million in the fourth quarter from 1.3 million in the previous period. The stock finished the day at $14.94 per share, down 5.1%. WWE shares closed at $16.40 each, down 2%, (30 cents) on Feb.12.

The weak WWE Network numbers overshadowed what was otherwise a strong quarter for the content company – revenue was up 18% and the company reported $3.4 million in net income, compared to a loss of $600,000 in the previous year.