Vince McMahon plotting WWE return, electing himself back to board of directors

Vince McMahon is making a play to return to WWE. 

As first reported by the Wall Street Journal on Thursday, McMahon plans to return to WWE in order to pursue a sale of the company. McMahon is said to have notified WWE that he will not, as majority owner, “support or approve any media-rights deal or sale if he was not named executive chairman to lead a review process.” 

McMahon was quoted in a press release on Thursday:

“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.”

McMahon has also notified the company that he is electing himself and former company co-presidents, George Barrios and Michelle Wilson, to the board of directors. Three current members of the board will be required to vacate their positions as a result. 

Regarding the elections of Barrios and Wilson, 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.”

McMahon is said to believe he will assume the role of executive chairman upon returning. WWE’s Board of Directors would need to approve this, however. 

McMahon sent a letter to WWE in late December detailing his desire to return in order to spearhead a sales process. WWE’s board responded to McMahon that they are willing to work with him on a review process for a sale but unanimously agreed McMahon returning to the company was not in the best interests of shareholders. 

The board also inquired as to McMahon’s commitment to repay company expenses relating to the investigation into allegations of hush money payments. They also asked McMahon not to return to the company while government probes into the matter are ongoing. 

McMahon responded that he is willing to cover reimbursement for reasonable expenses incurred due to the investigation that were not covered by insurance. He did not agree to not return to the company while government probes are ongoing, however. 

WWE stock is currently up 10.22% in after hours trading as of this writing, potentially due to talk the company could possibly be sold.