Updated
Updated · POST Wrestling · Jun 5
WWE Shareholders Seek $949 Million Over TKO Merger, Alleging 52.8% Equity Was Owed
Updated
Updated · POST Wrestling · Jun 5

WWE Shareholders Seek $949 Million Over TKO Merger, Alleging 52.8% Equity Was Owed

1 articles · Updated · POST Wrestling · Jun 5

Summary

  • $446 million to $949 million in damages is at stake after plaintiffs filed a 75-page pre-trial brief arguing WWE investors should have received 52.8% of TKO, not 49%, in the 2023 merger.
  • Vince McMahon is central to the claim: plaintiffs say WWE's board routinely followed his wishes, he forced his January 2023 return by threatening to block deals, and he pursued a sale that preserved his power.
  • The brief says Endeavor's Ari Emanuel had discussed a deal with McMahon from the day of his 2022 retirement, while Liberty Media later offered $95 to $100 a share in cash before WWE accepted Endeavor's 51-49 split.
  • Plaintiffs argue the merger was rushed before WWE's next media-rights negotiations could lift its valuation, while giving McMahon non-ratable benefits including a lifetime TKO role, quick monetization of $670 million in stock, and legal support.
  • Delaware's Court of Chancery begins a four-day trial Monday before Vice Chancellor J. Travis Laster, who will rule later on whether fiduciary duties were breached.

Insights

After sanctions for destroying evidence, can Vince McMahon prove the WWE merger wasn't a self-serving deal?
If WWE's merger was so unfair, why has the new company's stock nearly doubled in value?