While wrestling’s heyday may have come and gone, it is still sufficiently popular to draw lots of viewers and, thus, monetization opportunities. World Wrestling Entertainment (NYSE:WWE) is pretty much the hallmark of wrestling these days, and it may well be sold in the near future. The notion of a sale is intriguing investors, too, and shares are up in Friday afternoon’s trading.
The price tag, meanwhile, may prove too rich for all but the richest investors. Vince McMahon, WWE chairman, is reportedly out to get up to $9 billion for the franchise, which is a sudden jump of about $500 million from the earlier-revealed asking price of $8.5 billion. As ludicrous as that price may sound to some, to others, it sounds like a potential deal in the making.
UFC parent company Endeavor Group Holdings (NYSE:EDR) has reportedly put in an offer. So too, have some Middle East investors, though it’s not immediately clear if elements of the Saudi Arabia Public Investment Fund were involved in that bidding. However, reports note that $9 billion may be more check than Endeavor Group can cash; Endeavor’s market cap is around $10.4 billion. McMahon is asking for quite a premium, as the WWE’s market cap is around $6.5 billion.
Overall, analyst consensus calls WWE a Moderate Buy with 16.45% upside potential thanks to its average price target of $103.33 per share.
