Jayson Derrick of Benzinga.com previews WWE's third quarter results they will report on Thursday before market open. It's noted the company is expected to lose $0.17 per share on revenue of $133.2 million, according to consensus analyst estimates.
What's more interesting is that Reverend Emmanuel Lemelson, chief investment officer of Lemelson Capital Management (a global investment management firm), believes the McMahon family is interested in selling the business.
He notes WWE has poor fiscal management but excellent creative management. As a result, Lemelson believes a "new executive management team or the sale of the company is a likely scenario that will play out in the future."
He notes WWE is an "acquisition target" valued at $1 billion prior to the launch of the WWE Network.
Regarding the WWE Network, Lemelson doesn't see WWE meeting their one million user subscriber goal for the year. Moreover, it's noted WWE has acknowledged it will require more than one million WWE Network subscribers to make the service profitable.
However, Lemelson sees the WWE brand as a "considerable opportunity" for any potential acquirer because it is "truly a piece of '‘Americana' with global appeal."
Click here for the article on Benzinga.com.
Richard Reacts: I believe there is a disconnect between WWE as a publicly traded company and WWE as a Sports Entertainment company. Because of this, I agree with the assertion WWE is a company of poor fiscal management but excellent creative management. However, I believe WWE would have a very difficult time thriving without Vince McMahon. Say what you want but I believe it takes a very special type of person to be able to succeed in this business. Many have tried and Vince is literally the last man standing. I used to laugh off 'WWE for sale" rumors but Vince had a chance to dismiss them earlier this year and didn't. Thursday will be interesting, regardless of the commentary that precedes it.