WWE shareholders took a financial haircut on Thursday, at least on paper.
Stock for the company had a noticeable drop since the market opened this morning. On Wednesday, WWE’s stock closed at $110.05. On Thursday, the stock dropped down to currently $94.44.
SeekingAlpha.com reported the drop in stock price is due to the ripple effect of a Saudi Arabian investment fund investing in UFC’s competitor, PFL. In addition, the Endeavor Group’s stock has also dropped as it is the parent company of the UFC and will be acquiring WWE officially next month.
The plan is to merge the UFC and WWE into a new publicly traded company, TKO. The stock for WWE and Endeavor is down because investors are worried that big money is being put into a competitor of TKO despite the PFL being a distant number two competitor to the UFC.
WWE has a 10-year partnership with the Saudi General Sports Authority that sees WWE be paid big money to host two events in the country per year. They will return for their second event of 2023 in late October/early November.
