Jeff Bezos’ Next Conquest: The WWE?

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WWE is considering the sale of broadcasting rights for its programming. One analyst suggested that Amazon might be a strategic buyer for the entire company. | Credit: AP / Patrick Semansky

  • The WWE reportedly considering selling its streaming rights. One analyst believes Amazon would be an excellent buyer.
  • The WWE has grown tremendously in recent years. However, the stock has struggled due to disputes management.
  • Buyer Amazon broadcast rights to WWE, which could open the door for an acquisition of the entire company.

    big, sweaty and shirtless men, pretending to fight each other before frothing crowds of spectators? Sounds like a rare thing to see. But that's the WWE (NYSE: WWE). It is hugely popular, and things could start.

    In its Q4 earnings call, the WWE announced that the organization is open to selling rights to other pay per view streaming services. And this opens a wide range of possibilities. According to an analyst at Needham, Amazon (NASDAQ: AMZN) they may be interested in adding the program to their portfolio .

    Fight the world has encountered challenges

    World Wrestling Entertainment experienced tremendous growth in the second half of the decade of 2010. The organization used its loyal fan base with innovations such as the transmission line to increase revenue of $ 477 million in 2010 to $ 930 million 2018. share price of the company followed a massive run from a minimum of $ 6.76 per share to record highs that were more than $ 90 Source: ycharts.com

    However, the company once high-flying has had its share of difficulties in recent months. More recently, the WWE announced the departure of its two co-presidents: George Barrios and Michelle Wilson. The news sent shares up 22% in one day.

    According to Jim Cramer of CNBC, CEO Vince McMahon had disagreements with the two presidents about which direction to take the company. A possible sale to Amazon?

    earnings report 4Q WWE sheds some more light on what is happening behind the scenes in the entertainment giant. Frank A. Riddick, who is serving as interim CFO of the company, alluded to the new strategy of the company, stating:

    Given the evolution of new transmission services and the increasing value of live content, we believe that there may be alternative strategic options for the WWE Network, we allow more monetizing our most valuable premium content. Therefore, we are currently evaluating alternative strategic options.

    According to Needham analyst Laura Martin said in a report by CNBC, Amazon may be interested in a license agreement with WWE. Martin suggests that such an agreement could put all Amazonas able to buy the company, saying:

    We believe that such an agreement would license AMZN the best place to buy the entire WWE, as long as the family is ready to leave. Vince McMahon is currently 74 years old. What's in it for Bezos?

    Oddly enough, a purchase would make sense for WWE Amazon. The organization has a large and loyal fan base that is highly differentiated from anything else on the market. The content service would have synergies with Amazon Prime Video and help compete with rivals like Netflix or Disney.

    With a total market cap of $ 3 billion, a complete purchase of the WWE would be a drop in the bucket for Amazon. The Seattle-based company has a whopping $ 36 billion in cash on its balance sheet as of the annual report 2019.



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