Report: Did Vince’s “Firing” Cause WWE’s Stock To Drop?
WWE stock closed today at 9.99, a 0.14 (1.42%) increase on the day on lighter than average trading. The stock reached a low of 9.80 and a high of 10.00. There had been some concern that the Vince McMahon “fired” storyline from last night’s Raw would damage the stock as had previously occurred after an angle with Donald Trump.
WWE stock dropped as much as 6.7 percent two years ago after Donald Trump bought RAW in the storylines. One stock analyst entirely blamed the storyline for the big stock drop.
Maxwell Murphy of Dow Jones News Plus wrote: “For starters, public companies don’t announce mergers and acquisitions involving one of their most lucrative brands as part of staged, circus-like events. And if, heaven forbid, they do, they certainly must file with alacrity an 8-K with the Securities and Exchange Commission to announce and explain the pact, which WWE hasn’t done.”
Murphy also noted that he contacted USA Network, which issued a press release to trumpet the storyline sale to Trump. “A USA spokesman referred questions to WWE about whether the release could mislead WWE investors who don’t get the joke, or run afoul of Securities and Exchange Commission disclosure rules,” continued Maxell. “An SEC spokesman wasn’t familiar with the situation, but doubted the agency would have a comment one way or the other about the propriety of such a press release.”
When reached for comment, a WWE spokesperson noted that the Trump sale would “make for great television,” but danced around directly admitting the sale was a storyline. It’s a safe bet that WWE will handle this storyline similarly, if asked about it by the press.