Prospective Buyers
It’s time to examine why a WWE sale is huge. In part one, we looked at why people believe it’s up for sale, what makes it such a valuable asset, and possible obstacles to a sale. Now, we’ll look at potential purchasers and how a sale could benefit other wrestling promotions.
The idea of the WWE going up for sale isn’t new. You may recall talks dating back to 2020 of the WWE being sold. The COVID-19 pandemic stalled any talks. As we explained in part one, these rumors seem more substantial.
So who are some of the WWE’s prospective purchasers? Many names have been mentioned as candidates for buying the WWE. CNBC’s Alex Sherman broke the buyers down into three categories “…the legacy media companies, the streamers and the entertainment holding companies.” (H/T CNBC)
This includes more companies than names that have been mentioned before such as NBC, FOX, and Disney.
Why a WWE Sale is Huge (Prospective Buyers)
Amazon
Amazon continues to expand its streaming service. It recently purchased the rights to air NFL games on Thursday nights and not too far back, it purchased MGM. Amazon seems to want breadth as well as depth in its content which makes the WWE a good candidate. The WWE may be seen as a product appealing to a different demographic. Furthermore, it has a huge library of content.
CAA (Creative Artists Agency):
The talent agency’s name has been mentioned, including last August when the topic of a WWE sale came up after Vince McMahon’s July retirement. In an August interview with Wrestlenomics, media and technology analyst Brandon Ross discussed:
We all know that WWE has really been under-monetized from a sponsorship perspective for a long time. If you look at it like, where does the profitability of this business come from? It’s on those kinds of rights deals.
H/T Wrestling Inc.
Obviously, CAA isn’t the only company that could find a better way to monetize sponsorship deals. CAA wouldn’t be the first talent agency to acquire a business as Endeavor acquired a controlling interest in UFC in 2016.
COMCAST
COMCAST owns NBC-Universal which in turn owns the USA Network, the long-time home of RAW. It’s believed that NBC’s most recent deal with the WWE has it paying $265 million a year to air the WWE’s three-hour program. The USA Network also airs NXT.
With NBC having paid a rumored one billion dollars to the WWE to air the WWE Network on the Peacock streaming service for several years, the company has invested heavily in WWE content. This hasn’t been lost on wrestling fans, business analysts, or wrestling pundits such as Dave Meltzer, who commented in 2021, “For all the money that they’re paying, NBCU really should have bought the company.” (H/T Forbes)
The problem is that FOX has the broadcast rights to SmackDown, but with the FOX deal expiring at the end of 2023, this could be COMCAST’s year to move.
Disney
Disney has shown its willingness to diversify its intellectual property ownership by purchasing Marvel and Lucasfilm. Given the financial success of what Disney has done with these properties, the Disney touch could take the WWE to new heights with its merchandising.
While the WWE Universe may balk at Disney handling wrestling, these concerns could be assuaged by keeping on the current management team, particularly in creative.
Endeavor Group Holdings
Endeavor Group Holdings is a talent agency that also has holdings such as UFC. While it is likely a long-shot contender for the WWE, its name has been mentioned in talks about prospective buyers.
One of the important things to consider about would-be buyers is that they may have a vision for the company much different than other bidders. This could lead to them feeling they are uniquely suited for owning and operating the WWE.
FOX
The Fox Corporation’s five-year $205 million/year deal for the rights to broadcast SmackDown ends at the end of 2023. Could FOX consider purchasing the WWE and hopefully saving money in the long run when it comes to increasing TV rights deals?
Liberty Media
Liberty Media is best-known for owning SiriusXM, Formula One racing, and the Atlanta Braves baseball organization. The organization’s name has been mentioned but so far, it seems to be a long-shot contender.
Netflix
Netflix isn’t known for its sports programming but it might venture out into the world of sports entertainment as it faces continued competition from streaming services such as Amazon and Disney+
Saudi Arabia Public Investment Fund
One of the biggest wild cards is the Saudi Arabia Public Investment Fund (PIF). PIF’s name came up after Front Office Sports reported:
Saudi Arabia’s Public Investment Fund is emerging as a possible bidder for WWE if the promotion puts itself up for sale, sources told Front Office Sports. PIF controls about $620 billion in assets. Vince McMahon’s sports entertainment company could be the next possible step in its global sports expansion.
H/T Front Office Sports
PIF’s development of its two billion dollar golf league LIV Golf has raised complaints about sports washing. The same complaints have been made about the Saudi government’s $100 million annual payouts to the WWE to hold two shows per year in Saudi Arabia. Might PIF buy the WWE outright?
Warner Brothers Discovery
Warner Brothers Discovery could acquire the WWE and spin it off into its many products including amusement parks, comic books, music, TV, and video games (to name a few). The WWE Network could end up on the company’s streaming service HBO Max.
What It Means for Other Wrestling Companies
If one of the aforementioned companies buys the WWE outright, it could help the wrestling industry in general. This might seem counterintuitive in some cases. For example, if Warner Brothers Discovery were to purchase the WWE, wouldn’t this be devastating for Warners’ current wrestling partner, All Elite Wrestling? As we’ll see, a WWE purchase could prove helpful to AEW (as well as IMPACT Wrestling).
An Increase in Value
If the WWE is purchased, that could create a content vacancy for its existing TV partners. For example, if NBC and/or FOX lose their TV rights deals, they may consider working with AEW, even if it’s perceived as a distant second to the WWE. Depending on who acquires the WWE (for example a streaming service such as Amazon or Disney as opposed to a broadcast or cable network), AEW could find itself in higher demand. With Tony Khan owning Ring of Honor and its tape library, an AEW/ROH merger (since Tony Khan owns ROH separate from AEW, which is owned by his father) could be attractive for cable and streaming.
A Move to Bigger Stations
Both AEW and IMPACT could find themselves on bigger stations (although in the case of IMPACT, only the greatest of optimists would believe it’s going to be a network station or larger cable network).
Why a WWE Sale is Huge (Part Two)
There are other factors that could impact a WWE sale. These are the X factors that arise during business deals or afterward. If the sale does take place, it will be one of the biggest happenings in the company’s history.
Who do you think will buy the WWE if it goes up for sale? Let us know in the comments below.
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