More on Vince McMahon Plotting WWE Return: McMahon’s Statement & Backstage Reaction

As noted before, former WWE Chairman and CEO Vince McMahon is currently in the process of preparing his potential return to WWE. McMahon had originally retired from WWE this past July over the fallout of the sexual misconduct and assault allegations against him at the time and has been dealing with recent new legal issues.

McMahon recently issued an official press release confirming that he is currently in the process of a potential return to his former executive leadership role in WWE.

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 he has taken necessary actions to position the Company to capitalize on a unique opportunity to maximize long-term value for all WWE shareholders. The actions, communicated to WWE’s Board of Directors today via written consent, include the election to the Board of Mr. McMahon, as well as Michelle Wilson and George Barrios – former WWE Co-Presidents and Board members, and currently the Co-Founders and Co-CEOs of Isos Capital Management – and the requisite 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 in the best interests of WWE and WWE shareholders amidst the current dynamics in the media and entertainment industry. As Mr. McMahon has communicated to the Board, he believes there is a narrow window of opportunity to create significant value for all shareholders and that to do so, the strategic alternatives review must occur in tandem with the media rights negotiations. He also expressed to the Board that he believes these two initiatives require Mr. McMahon’s direct participation, leadership, and support as controlling shareholder.

“WWE is entering a critical juncture in its history with the upcoming media rights negotiations coinciding 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 fully capitalize on this opportunity is for me to return as Executive Chairman and support the management team in the negotiations for our media rights and to combine that with a review of strategic alternatives. My return will allow WWE, as well as any transaction counterparties, to engage in these processes knowing they will have the support of the controlling shareholder.”

Prior to delivering 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. Following conversations with representatives of the Company both before and after Mr. McMahon’s most recent letter on December 31, Mr. McMahon determined, consistent with his rights as controlling shareholder, that the steps announced today are necessary to maximize value for all WWE shareholders.

Mr. McMahon said, “Ms. Wilson and Mr. Barrios are highly qualified directors whose professional experience positions them well to help the Company achieve the best possible outcomes in both initiatives. As former WWE Co-Presidents and Board members, they are intimately familiar with industry dynamics and the organization’s operations and have helped guide the Company through past successful media rights negotiations. I look forward to working closely again with Michelle and George – as well as the Company’s remaining directors and management team, who have my full support and confidence. WWE has an exceptional management team in place, and I do not intend for my return to have any impact on their roles, duties, or responsibilities.”

In conjunction with the changes to WWE’s Board, 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 a Schedule 13D amendment to be filed by Mr. McMahon and a Form 8-K to be filed by the Company in the coming days.

No assurances can be given regarding the outcome or timing of the review process. Mr. McMahon does not intend to comment further until the process has concluded or Mr. McMahon has otherwise determined that further disclosure is appropriate or required.

In regards to the reaction from Wall Street, WWE’s stocks rose from $70.54 per share at the start of Thursday’s trading hours to $80.25 per share for after hours trading. PWInsider’s Mike Johnson reported that the reason for the large jump in share price is due to Wall Street being a lot more optimistic about a potential sale of WWE should McMahon actually return.

In regards to the reaction within WWE, Fightful Select reported that their sources stated that the general reaction was a mixture of being caught off guard and much more negative. Those spoken to within WWE’s management, production team, creative team, and staff reportedly were all caught off guard and had no knowledge beforehand of McMahon’s return plans.

One talent spoken to reportedly stated that nobody in WWE’s locker room were informed beforehand of McMahon’s plans but speculated that some of the people from McMahon’s regime in WWE’s Board likely had some prior knowledge due to them staying this long in the company after McMahon’s departure.

One top talent spoken to reportedly stated that while they did not have any prior knowledge beforehand, WWE’s locker room had the common concern over McMahon’s potential return at some point and him wanting to regain control over the company’s creative direction.

It was reported that the general reaction within WWE’s production department from those spoken to was unanimously bad news or “news above their pay grade” that they were unconcerned about until it affects them.

One talent spoken to stated “Finding out online is scary, and it’s Vince, so I don’t believe a word he says. I hope current management and everything doesn’t change, but only time will tell.” This same talent reportedly also stated that they currently have a lot of respect for WWE co-CEO Stephanie McMahon and WWE Chief Content Officer Paul “Triple H” Levesque over their work in the company.

Another talent spoken to stated that they believe there will be a huge uproar within WWE’s locker room should McMahon actually return and takes back control of WWE’s creative.

One high level WWE person spoken to stated “I can’t count how many interviews I’ve read or people I talked to outside the company that said ‘Vince liked me, but I got fired.’ He didn’t like you, he didn’t like any of them. He fired or they wouldn’t have been fired during a pandemic.”