WWE stock has plunged since the announcement that Co-President’s George Barrios and Michelle Wilson are departing the company. The executives are being forced out just days before the company reports their fourth quarter earnings. The earnings report will be made available next Thursday morning and it’s expected that Vince McMahon will address investors on the quarterly conference call later that morning.
Since the announcement from WWE, the company stock has dropped over 22 percent in after hours trading. The stock opened at 60.54 and has dropped to 47.98.
There are no details available yet but the decline of WWE Network subscriptions and declining year-to-year ratings likely played a part in this decision. Stockholders have previously expressed concern about the emergence of All Elite Wrestling. The rise of AEW has led to WWE to increase spending by offering massive contracts. Edge, for example, is reportedly going to make $3 million per year for the next three years. Others like Luke Gallows and Karl Anderson are making $750,000 each per year on the terms of their new deal. While WWE is making more money through their TV deals, the increased spending has to be an issue for stockholders and a lot of the spending has been related to efforts to keep wrestlers from signing with AEW.
“I would like to thank George and Michelle for their 10+ years of service and contributions to the organization,” Vince McMahon said in the press release. “I am grateful for all that was accomplished during their tenure, but the Board and I decided a change was necessary as we have different views on how best to achieve our strategic priorities moving forward.”
Frank A. Riddick III has been named the CFO for the interim as they search for a permanent Chief Financial Officer and Chief Revenue Officer.
This is obviously a huge story and we’ll have more as more news comes out.
