Possible Reasons for the WWE’s Potential Sale
Why is the WWE suddenly up for sale? The story of the WWE reportedly being prepped for sale has led to various questions including who might buy the company and when the deal might happen. For the answers to these questions, check out WrestleLamia’s two-part “Why a WWE Sale is Huge” feature (part one and part two).
One possible reason is the WWE wishes to cash in on its popularity before its TV rights deals expire. As you probably know, the WWE makes significant money from its deals with NBC for airing RAW and NXT. It also has a lucrative deal with FOX for the rights to SmackDown.
Dave Meltzer commented on Wrestling Observer Radio:
“Now, the idea is that they’re looking to sell before the TV deal.“
H/T Ringside News
The WWE may want to encourage the companies that pay for TV rights to consider buying the company outright, Here, the idea might being the purchaser will save money in the long run by avoiding a TV rights bidding war.
Another possibility is the belief among some industry analysts that entertainment companies are looking to pay less for content. Premium content such as the NFL should continue commanding top dollar. However, other entertainment won’t come close.
The WWE may be opting for a sale so the future owner can deal with negotiating a deal. This could prove prudent should companies decide that current content deals are overpriced.
Why is the WWE Suddenly up for Sale?
WrestleLamia will continue following this story. Do you think the WWE will go up for sale? Let us know in the comments below.
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