Top WWE executives, including Vince McMahon, are facing a new lawsuit regarding WWE merging with UFC to create the new TKO.
Lawsuit
The suit was unsealed last week, where it was revealed an Ohio pension fund alleged McMahon and other Board members moved for a “quick sale” and a favorable one to Endeavor. It alleged McMahon made the deal with Endeavor because of his friendship with Ari Emanuel, who founded the company.
The Hollywood Reporter and Bloomberg Law first reported the news. Some investors feel the deal was done to allow McMahon to stay on as TKO Executive Chairman while also allowing him to avoid being ousted over the sexual misconduct allegations that came out last year.
It was alleged WWE turned away from two all-cash offers that they perceived as having better terms. Although the other potential bidders weren’t identified, they were said to be “major institutions with significant access to capital” that had “compelling reasons to close an acquisition of WWE.”
The complaint
“According to the complaint, this included undisclosed companies submitting cash offers at $95-$100 and $90-$97.50 per share,” the report noted. “But because they contemplated cashing out WWE stockholders and barred McMahon from rolling over his shares, which would’ve signaled his “complete ouster” from the wrestling world, the board “never bothered to make” counterproposals, the suit states.”
When the merger closed, the $95.66 per share price was less than other offers. McMahon and the Board “conjured up a sham sales process” to put Endeavor as the front runner, according to the suit, which also named Nick Khan, Paul Levesque, George Barrios and Michelle Wilson.
Khan, Levesque, and Frank Riddick were called out for the combined $25 million in cash bonuses they got because of the merger.
