WWE stock has dropped nearly 50% since the announcement yesterday of a new television deal with NBC Universal. According to an article by Forbes, investors and analyts were not impressed with the new deal feeling that increase in rights fees (estimated to be at around 50% more) wasn’t strong enough based on company estimates earlier this year. Another big factor is the continued performance of the WWE Network and how it needs to continue to build on the 670,000 that signed since February.
As of Friday morning, the stock was already down to $11.41.
Vince McMahon has also taken a hit in the process according to Forbes.
“The stock’s losses have also had a body-blow impact to Vince McMahon’s personal wealth: according to the FORBES real time wealth tracker, McMahon has lost $357 million, nearly a third of his fortune, since Thursday’s closing bell.”
Forbes: WWE Slammed: Stock Plunges Nearly 50% As NBCUniversal Deal Fails To Impress