WWE gets smacked down by Wall Street - CNN
Maybe I'm just slightly arrogant and super pessimistic on WWE but I've seen saying the run has to end at some point. The billion dollar TV deals absolutely shocked me, but I think the Fox one is going to do more harm to WWE and expose the fact that they're not that popular anymore.
The 10-year Saudi deal (valued more than Wrestlemania revenue) and domestic TV deals make WWE foolproof for a long time. You'd have to purposely want to tank the company to sink them anytime in the next 15-20 years, but I think the wave is over.
Network numbers still aren't at 2-million, viewership continues to constantly decline, attendance is sinking.
I don't know what the International landscape is for WWE anymore. Maybe they can get something with India even though they don't have an Indian draw anymore since Khali is retired, but I don't think they're going to get such sweetheart deals that they got in America at all.
New York (CNN Business)Shares of World Wrestling Entertainment, aka the WWE, have been sent crashing into Wall Street's turnbuckle this year and are in danger of being pinned to the mat.
You would think this would be a great time for the WWE (WWE): It has new TV deals with Fox(FOXA) and Comcast's (CMCSA) USA that are financially beneficial for the company. But the stock is now down about 10% this year and is trading more than 30% below its 52-week high.
What gives?
Some investors are concerned that we've reached peak WWE. Fox's first broadcast of SmackDown on Friday nights brought in solid ratings earlier this month. But viewership has tumbled in the weeks since then, which could be a concern.
"Ratings are a barometer of fan interest and they have been going in the wrong direction," said Brandon Ross, a media analyst with LightShed Capital.
Maybe I'm just slightly arrogant and super pessimistic on WWE but I've seen saying the run has to end at some point. The billion dollar TV deals absolutely shocked me, but I think the Fox one is going to do more harm to WWE and expose the fact that they're not that popular anymore.
The 10-year Saudi deal (valued more than Wrestlemania revenue) and domestic TV deals make WWE foolproof for a long time. You'd have to purposely want to tank the company to sink them anytime in the next 15-20 years, but I think the wave is over.
Network numbers still aren't at 2-million, viewership continues to constantly decline, attendance is sinking.
I don't know what the International landscape is for WWE anymore. Maybe they can get something with India even though they don't have an Indian draw anymore since Khali is retired, but I don't think they're going to get such sweetheart deals that they got in America at all.