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World Wrestling Entertainment (NYSE:WWE) stock is up about 7.5% in pre-market Wednesday trading after the company and its board unanimously elected Vince McMahon as executive chairman.
At the same time, Vince’s daughter Stephanie McMahon has resigned from her roles as chairwoman and co-CEO. Going forward, Nick Khan will serve as WWE CEO.
“Nick’s business acumen and mastery of the media industry have helped catapult our business to record revenue and profitability. Together, we look forward to working with the Board at this critical moment in time to review our strategic alternatives and maximize value for all WWE shareholders,” Vince McMahon said in a statement.
Last week, WWE said its founder and controlling shareholder, Vince McMahon, will return to the company’s board while the company will review strategic alternatives.
“We believe a sale of WWE is possible and are raising our target price from $86 to $110 to account for this scenario,” commented Citi analysts.
Analysts at Benchmark had weighed in late last week to note that WWE is worth over $105 per share on a potential deal, according to their calculations.
“WWE’s history and now current operational shakeup and market consideration related to the value of live content creates an optimal setting for an acquisition attempt,” the analysts wrote.
WWE stock is up nearly 32% year-to-date (YTD) on potential sale rumors.
