impending sale From WWE to Endeavor Group Holdings is under investigation.
Felix Upton Ringside News reported on Tuesday that Ademi LLP, a law firm that specializes in shareholder litigation, announced that it is looking into whether the WWE Board of Directors received a fair and reasonable price in the sale.
Upton shared the press release:
Ademi LLP claims WWE’s financial outlook and financial outlook is excellent, yet the transaction values WWE stock at only $106 per share (before any post-closing earnings) with Endeavor owning a 51% controlling stake in the new company and existing WWE shareholders owning 49%. Interest in the new company. The deal agreement unreasonably limits WWE’s competing bids by imposing a significant penalty if WWE accepts a superior bid.
We are investigating the conduct of the WWE Board of Directors, and whether (1) they are performing their fiduciary duties to all shareholders, and (2) obtaining a fair and reasonable price for WWE.
Jordan Valensky CNN reported Monday that WWE’s merger with Endeavor Group, the parent company of the UFC, valued the UFC at $12.1 billion and WWE at $9.3 billion. After the deal, Endeavor shareholders will own 51 percent of the new company while the other 49 percent will belong to WWE shareholders.
Vince McMahon will remain CEO.
Valensky noted that WWE shares fell nearly 10 percent in early trading after news of the deal broke.
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