This is definitely going to be the craziest thing you’ll hear about today.
The WWE is rumored to be in talks with ESPN and Fox over a potential sale of the company, that is according to wrestling legend Dutch Mantel after he “overheard” the news.
“HUGE NEWS: Any truth to this. Overheard directly out of @WWE Stamford is that a deal is being negotiated to sell WWE & the network to @ESPN and @FOX by as early as Mid May.”
Vince McMahon has owned the pro wrestling promotion since 1982 after purchased it from his father. The company, much like much of the country, has been going through quite a bit of turmoil as they were forced to release a number of superstars as it takes measures to cope with the Covid-19 crisis. Talent like Kurt Angle, Rusev, Drake Maverick Zack Ryder and Curt Hawkins were given their walking papers.
WWE released a statement earlier this month announcing what they’ll be doing to save money in response to the current impact of COVID-19 on the organization.
WWE (NYSE: WWE) today provided an update on measures taken by the Company in response to the current impact of COVID-19 on the organization.
Due to COVID-19 and current government mandated impacts on WWE and the media business generally, the Company went through an extensive evaluation of its operations over the past several weeks. This analysis resulted in the implementation of various short-term cost reductions and cash flow improvement actions including:
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- 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.
Given the uncertainty of the situation, the Company also identified headcount reductions and made the decision to furlough a portion of its workforce effective immediately. The decision to furlough versus permanently reduce headcount reflects the fact that the Company currently believes the furlough will be temporary in nature.
The Company’s reductions of employee compensation and headcount result in an estimated monthly savings of $4 million along with cash flow improvement of $140 million primarily from the deferral in spending on the Company’s new headquarters. Additionally, the Company has substantial financial resources, both available cash and debt capacity, which currently total approximately $0.5 billion, to manage the challenges ahead. Management continues to believe the fundamentals of the Company’s business remain strong and that WWE is well positioned to take full advantage of the changing media landscape and increasing value of live sports rights over the longer term.
The Company will provide further details when it reports its first quarter 2020 results next Thursday, April 23 after the close of the market.
Dutch Mantell has worked in pro wrestling since 1972, but current fans might remember him as Zeb Colter, who was Jack Swagger’s racially charged manager in 2013.
