WWE CEO Nick Khan says Vince McMahon would step away from WWE if the move was in the shareholders’ best interest.
McMahon, who retired in July 2022 amid an internal investigation into alleged sexual misconduct and hush money, returned to the WWE Board of Directors on January 6, and he was voted the Executive Chairman of the Board on January 10. His return was centered around the negotiations for media rights deals and a potential sale.
During WWE’s fourth quarter 2022 earnings call, a potential sale and the way McMahon’s involvement could affect it came up in the discussion. Khan was asked whether he could definitively say that McMahon would end his involvement with the company if it was in the shareholders’ best interest. He stated that McMahon has assured both the board and WWE management that he would do that because the primary focus is about the value for the shareholders.
“Yes. Without question. He’s declared it to the board. He’s declared it to us in management,” Khan said. “It’s all about shareholder value. Obviously, he is a shareholder. So it’s not about what role he’ll have. It’s about maximizing that value opportunity
As for what WWE would be looking for in a potential partner, Khan stated that WWE has its sights set on someone who understands the media business and WWE’s product. He made it clear that the objective would be to find the best value for the shareholders by aiming to accelerate WWE’s business.
“A partner that has more than simply deep pockets,” Khan said. “So a partner that understands the media business, that’s in the media business, that understands how to further monetize the media business. [Also, a partner] that certainly understands our product, our intellectual property, what we’re doing with it, what can be done with it. Media rights, both domestically and internationally. We see the international growth opportunity is huge. So these are folks, in terms of choosing the right partner, these are all things that we’re going to be looking at in terms of who can accelerate our business. Again, what’s the best value for our shareholders? (Transcription credit of Robert DeFelice of Fightful)
Khan also appeared on “Squawk on the Street” CNBC on February 3, and he repeated that McMahon would be willing to leave WWE if the move was in the shareholders’ best interest.
“100%, without question,” Khan said. “100% if it’s the right deal, and I think we’re going to take a look at all of the factors that make it the right deal. If it doesn’t involve him, it’s no issue.”
Dwayne @TheRock Johnson told us that if the @WWE were to sell they’d have to find the “right buyer” with passion and love for the brand.
CEO Nick Khan agrees: If it's the right deal, it's no issue.$WWE @CNBC @DavidFaber @CarlQuintanilla @MorganLBrennan pic.twitter.com/E5ZxYlvBV0
— Squawk on the Street (@SquawkStreet) February 3, 2023
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