WWE Stock Spikes After Negotiations Between AMC and WWE Were Revealed

A new report from SeekingAlpha.com claims that WWE stock spiked on March 13 after negotiations between AMC Network and WWE were revealed. Apparently, the mid-day spike occurred based on rumors that AMC Network wants to purchase WWE completely. However, the rumors of negotiations between AMC Network and WWE were probably misconceived to say “AMC wants to buy WWE,” instead of what the actual negotiations between the two are for.

As we previously reported, WWE’s current deal with NBCUniversal is up in September. After NBCUniversal failed to offer a new deal that seemed subtable to WWE executives, WWE began shopping its television distribution rights out to a number of different networks. AMC, Viacom, Time Warner, and FoxSPORTS are all in negotiations with WWE over who will secure distribution rights to WWE programming such as “Monday Night Raw” and “Smackdown.”

Rumors that AMC Network wanted to purchase WWE as a company began with a blog post at Betaville123.co.uk. The post says,

“Good sources tell me cable group AMC Networks has been sniffing around World Wrestling Entertainment Inc, the US-listed company behind those ridiculous wrestling programmes, such as WWF, Raw and Smackdown.

AMC Networks has held at least one exploratory conversation with WWE – which saw its shares rise by about 30pc during last week – about some kind M&A transaction in recent months, according to “people familiar with the matter”. However, the talks are understood to have not gone anywhere.

Another source said bankers from UBS have been advising AMC Networks, owner of Sundance TV, on a potential deal and financing options.

This well-placed source said any transaction may value WWE at between $2.6 and $2.8bn.”

Again, this information is likely something that was lost in translation, as AMC Network IS in negotiations with WWE. However, those talks are not over the purchase of the company, but for the TV distribution rights. Nevertheless, WWE stock continues to rise with the debut of the WWE Network and rumors like these.