Stocks plummeting, TV ratings falling: WWE in troubled waters
WWE is in troubled waters after the sacking of co-presidents Michelle Wilson and George Barrios. WWE shocked the world when it announced the departures of long-time employees on Thursday and instated Frank Riddick as interim chief financial officer until the company looks for a permanent replacement. The news sent the media industry into a tailspin as details regarding their departure were scarce. However, the sacking of Barrios and Wilson has hampered the WWE stock big time.
“I would like to thank George and Michelle for their 10+ years of service and contributions to the organization. I am grateful for all that was accomplished during their tenure, but the Board and I decided a change was necessary as we have different views on how best to achieve our strategic priorities moving forward,” WWE CEO Vince McMahon said in a statement.
Dave Meltzer reported that WWE’s stock price dropped $9.55 per share in minutes after the announcement. WWE shares fell more than 20 percent as it went from $62.31 to $47.99 after their departures.
It has been also reported that WWE could see a cut back from investors.
Former WWE champion CM Punk did not miss the chance to take a dig at them following the announcement:-
‘We have a deep team of talented, experienced and committed executives across the organization, and the board and I have great confidence in our collective abilities to create compelling content, engage our global fanbase across platforms, increase revenues, and drive shareholder value,” McMahon added.
WWE is already facing the problem of falling ratings for its weekly shows like Monday Night Raw, SmackDown and NXT. With the launch of AEW Dynamite, the competition for TV ratings has increased. The TV ratings which used to hover above 3.5 million in 2012 has fallen down to less than 2 million in recent years. However, the launch of the WWE network also has had some effect on it.
Now, McMahon is also looking to relaunch his football league under the Alpha Entertainment banner and it is scheduled to be launched sometime this year.