Posted in: Sports, TV, WWE | Tagged: Vince McMahon, wrestling

Vince McMahon Selling 8.4 Million Shares of TKO; What Does it Mean?

Vince McMahon cashing out 8.4 million shares of TKO stock—part of his grand exit strategy or just maintenance funds for his mustache and hair treatments? U-DECIDE!

Published Thu, 09 Nov 2023 16:32:07 -0600

by Jude Terror

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Article Summary

Vince McMahon is selling 8.4 million shares of TKO stock, worth over $600 million.
The selloff follows plans previously announced to unload all of his TKO shares.
McMahon's actions come amidst reported removal from WWE creative control.
Speculation arises about McMahon's future with TKO and personal motives.

In a press release and SEC filing Thursday, TKO, the company formed from the merger of WWE and UFC, announced that Vince McMahon is selling 8.4 million shares of his stock. The news follows an announcement in September that 28 million shares of McMahon's TKO stock — all of it — would be placed up for sale. But while that filing expressed a future intent, this one is slightly different, as the sale is underwritten by Morgan Stanley and MUFG Securities Americas, meaning the banks have promised to sell the shares for McMahon, with McMahon keeping the profits (minus a cut for the banks).

Vince McMahon, sporting objectively the world's worst mustache and dye job, discussed the WWE sale on CNBC — Vince McMahon, sporting objectively the world's worst mustache and dye job, discusses the WWE sale on CNBC earlier this year.

Additionally, the press release notes that TKO itself will purchase $100 million worth of the stock, the amount of which will be determined by the sale price of the rest of it. TKO stock closed at $84/share today, but in the wake of McMahon's announcement, has fallen to $80 in after hours trading. At that price, McMahon could net over $600 million, though the current price is not a guarantee of what McMahon's shares will ultimately sell at. The press release also notes that three other company executives are interested in purchasing around $1 million each of McMahon's stock at the going rate.

While it's not totally clear what McMahon's future plans are, and whether this heralds his exit from the company, the announcement does follow reports that McMahon was removed from creative control of WWE television programs and directed to focus on securing television rights deals for the company instead. While McMahon has long been considered one of the greatest assets of WWE and was also touted as a big asset for TKO, he has also recently been listed in various SEC filings, both from TKO, and from WWE prior to the sale, as a liability due to ongoing government investigations into a hush money payment scandal and the corporate drama surrounding it.

It's been a roller coaster of a year for McMahon, who returned from exile due to a sexual misconduct scandal that led to multi-million-dollar payouts to women making various accusations about McMahon at the beginning of the year to oust several WWE board members and install cronies, reinstall himself as Chair, and initiate a sale process that led to the UFC merger that created TKO. McMahon serves as Executive Chair of the new organization, seemingly more powerful than ever.

Did McMahon return to his role out of spite, sell his family company to regain creative control, only to lose it and now look to cash out? Or maybe he just needs a few hundred million for upkeep of that horrendous dye job and mustache. Either way, the year ain't over yet, so we'll be paying close attention to what's next for a man who was once the most powerful in the wrestling business but now looks more and more like his own father after McMahon purchased the WWF from him, a fading relic of a bygone era stripped of power and influence that once seemed inexorable.

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