– As previously reported, former WWE Chairman and CEO Vince McMahon is returning to the company with plans to sell WWE. As first reported by The Wall Street Journal, McMahon’s plan included electing himself, along with former co-president George Barrios and Michelle Wilson, to the company’s board of directors. McMahon himself has already issued a press release that he has submitted written consent to the WWE board to elect himself, Barrios and Wilson as directors.
The press release also notes that Vince McMahon is taking “the necessary actions to position the Company to take advantage of a unique opportunity to maximize long-term value for all WWE shareholders.” It also detailed McMahon enabling “unified decision-making.” through upcoming media rights negotiations for WWE and “a parallel full review of the company’s strategic alternatives.” You can see the full press release with statements from Vince McMahon himself below:
Submits written consent to WWE’s board to elect himself and company veterans George Barrios and Michelle Wilson as directors
Action is needed to ensure McMahon’s full participation in the upcoming media rights negotiations and review of strategic alternatives
GREENWICH, Conn. , Jan. 5, 2023 /PRNewswire/ — Vince McMahon, the founder and controlling shareholder of World Wrestling Entertainment Inc. (“WWE” or the “Company”) (NYSE: WWE), announced today that it has taken the necessary actions to position the Company to take advantage of a unique opportunity to maximize long-term value for all WWE shareholders. The actions announced to the WWE Board of Directors today by written consent include the election to the Board of Mr. McMahon, as well as Michelle Wilson and George Barrios – former Co-Presidents and Board Members of WWE and currently Co-Founders and Co-CEOs of Isos Capital Management – and the necessary removal from the board of three directors. Mr. McMahon expects to assume the role of Executive Chairman of the Board.
Mr. McMahon’s new role will enable unified decision-making through the company’s upcoming media rights negotiations and a parallel full review of the company’s strategic alternatives, which Mr. McMahon believes is the right course of action and is in the best interest of WWE and WWE shareholders amid current dynamics in the media and entertainment industry. As Mr. McMahon has communicated to the Board, he believes that there is a narrow window of opportunity to create significant value for all shareholders and that to do so, the review of strategic alternatives must be done in tandem with media rights negotiations. He also expressed to the Board that he believed these two initiatives required the direct involvement, leadership and support of Mr. McMahon as controlling shareholder.
“WWE is entering a critical moment in its history with upcoming media rights negotiations that coincide with increased industry-wide demand for quality content and live events and with more companies seeking to own the intellectual property on their platforms,” said Mr. McMahon. “The only way for WWE to take full advantage of this opportunity is for me to return as executive chairman and support the management team in negotiating our media rights and combine that with a review of strategic alternatives.” My return will allow WWE, as well as all parties to the transaction, to engage in these processes knowing that they will have the support of the controlling shareholder.”
Prior to giving written consent, Mr. McMahon sent two separate letters to the Board in late December in which he expressed the urgency of his return to the Company as Executive Chairman and his desire to work collaboratively with the Board and management team. After discussions with representatives of the Company both before and after Mr. McMahon’s latest letter of December 31, Mr. McMahon has decided, in accordance with his rights as a controlling shareholder, that the steps announced today are necessary to maximize value for all stockholders of WWE.
Mr McMahon said: “Mrs. Wilson and Mr. Barrios are highly qualified directors whose professional experience positions them well to help the Company achieve the best possible results in both initiatives. As former co-presidents and board members of WWE, they are intimately familiar with the industry dynamics and operations of the organization and have helped guide the Company through past successful media rights negotiations. I look forward to working closely with Michelle and George again – as well as the rest of the company’s directors and management team, who have my full support and confidence. WWE has an outstanding management team and I do not intend for my return to impact their roles, duties or responsibilities.”
In conjunction with the changes to WWE’s Board of Directors, Mr. McMahon’s written consent also includes certain amendments to the Company’s bylaws to ensure that WWE’s corporate governance continues to properly enable and support shareholder rights. These changes will be detailed in an amendment to Schedule 13D to be filed by Mr. McMahon and in a Form 8-K to be filed by the Company in the coming days.
No guarantees can be made as to the outcome or timing of the review process. Mr. McMahon does not intend to comment further until the trial is complete or Mr. McMahon otherwise determines that further disclosure is appropriate or necessary.
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