Vince McMahon No Longer A Billionaire...

[Luke Flywalker]

...in ONE MORNING!

Forbes reports Vince McMahon took a $340M hit this morning as WWE stocks plummet.

http://www.forbes.com/profile/vincent-mcmahon/

 

[The Cork]

He hasn't been one for years though?

What happened for value to fall that much, someone done a Benoit again?

 

[Heisenberg]

He hasn't been one for years though?

What happened for value to fall that much, someone done a Benoit again?

Apparently the new TV deal news.

 

[Crippler]

dammit, i was hoping this was a troll title and you said he's now is a TRILLIONAIRE

 

[Deezy]

Vince fucked up by telling investors how confident they were the WWE would double it's TV rights fees and they didn\t do it, so investors panicked.

Fuck it, THE MADE BRYAN CHAMP AND LOOK WHAT HAPPENS. :

 

[Deezy]

Investment Firm Demands New WWE Ownership
An investment firm that has a large stake in WWE is demanding new management or a sale of the company, after claiming WWE misled shareholders over the WWE Network and other areas of the business.

As noted earlier, the WWE share price tanked over 40% with the renewal of WWE programming with NBCU.

Lemelson Capital Announces Stake In World Wrestling Entertainment And Calls On Board To Pursue New Management Or Ownership

Marlborough, MA, May 16, 2014 — Lemelson Capital, LLC, a private investment management firm, today announced that they had taken a stake in shares of World Wrestling Entertainment (WWE) and called on the Board of Directors to replace the executive management team of the company following a period of consistent losses, execution issues and material misstatements.

Despite the stock’s roughly 63% correction since Lemelson Capital’s original short call less than two months ago (from $30.37 on March 17 to $11.33 as of publication of this release), the firm today also reiterated that fair value of WWE’s common stock is between $8.25 and $11.88.

Lemelson Capital’s original short thesis can be found here:

“WWE has affirmed that even with one million subscribers for its WWE network, the company stands to lose between $45 million and $52 million in FY 2014, which validates the original short thesis,” said Emmanuel Lemelson, Chief Investment Officer of Lemelson Capital Management. “This follows what we believe to be material misrepresentations by the company about both the performance and operating profit model of its WWE network, which the company has wrongly labeled ‘a homerun’,” said Lemelson.

Lemelson Capital today also called on WWE’s Board of Directors to promptly replace the company’s executive management team, or explore the sale of the business, and said that such changes are a necessary component of any successful strategy going forward. “For example, promoting the WWE direct network’s value to shareholders without a fair and accurate discussion of the implications to a traditional network revenue circumvented management’s fiduciary responsibility as stewards of investor’s capital, and is part of what has emerged as a pattern over recent years. Further, there are no pending operational developments in the pipeline to offset these significant losses,” Lemelson added.

Of course WWE is under no obligation to change anything, and the McMahons remain the largest shareholders. A sale is simply not going to happen.
​

Knew the renewal deal should've been kept tight lipped, Vince fucked up by telling investors they expected to double up on rights fees and some of us said, WWE had to get atleast a million subscribers to break even with the network. That era of optimism was plain dumb by investors anyways. I wish I invested in WWE a year ago and sold in February, could've made some bank over that year.

 

[Cena's Jeans Shorts]

Not surprising, but it won't break them by any means. Seemed the stocks were a bit inflated, it'll adjust. People have to be questioning how the revenue stream will adjust to PPVs shifting to the WWE Network's monthly subscription deal in the US. From the US side of things, one also has to wonder how the dismantling of net neutrality could possibly hinder the possibilities for the nascent WWE Network.

It's a good opportunity for people to grab those stocks at a lower price if one feels the long range prospects of the WWE's network has promise to grow into something huge.

 

[ThatGuyFromNukemHigh]

Numbers for the network will fix itself when they expand outside of the US. Most people would only buy up to a couple PPV's a year, if you can convince 1 person who only pays for WM each year to subscribe for the whole year you have already doubled the revenue from that fan, convince someone who never pays for PPV's, and never goes to live events, and you create a new revenue. They just aimed too high for having a limited market.

 

[Rated R Superstar]

Probably should have waited until they expanded outside of the US before telling the investors anything like that. Haha!

 

[Slim]

hmmmm... now might be a prime time to lock in on it. Not like the stock is going to sky rocket into the stratosphere... but when the Network expands... it'll definitely inflate the price of the stock and money can be made. Not too much but some at least.

 

[John McHenry]

Post is just trying to sensationalize things.

 

[John McHenry]

@The Cork great response buddy thanks for the input. But it is sensationalizing. Stock is currently at 11.27 Still up from this time a year ago when it was around 9

 

[Deezy]

WWE stock is usually a good investment and pretty consistent, just over inflated because some fucks some Wall street big upped and then fucked them.