World Wrestling Entertainment Inc.’s search for a buyer or some other business arrangement has “a reasonable probability of success” that could draw the interest of streaming giants like Netflix Inc.
NFLX,
-1.98%
and Amazon.com Inc.
AMZN,
-2.11%,
Wells Fargo analysts said Tuesday. Those analysts upgraded WWE
WWE,
+0.29%
shares to their version of hold from sell. They increased their price target to $100 from $52, saying interest from buyers and the value of TV rights could give the company a value of as much as $8 billion.
Shares were down 0.9% to $88.59 during the day. The company has a market value of around $6.6 billion. The analysts upgraded the stock after Vince McMahon returned to WWE this month — reportedly with plans to put the pro-wrestling empire up for sale. WWE has said it is reviewing “strategic alternatives” intended to “maximize value for all WWE shareholders.” McMahon had retired from the company last year amid a sexual-misconduct investigation. Upon McMahon’s return, his daughter, Stephanie, said she would resign from her role as co-CEO. The Wells Fargo analysts said that unlike a “financial” buyer — or someone who views an acquisition more as an investment — a so-called “strategic” buyer would air WWE content through their own networks. They would also likely pay less than a financial buyer. “While no potential strategics have commented, we think there will be reasonable interest from the likes of NFLX, AMZN and CMCSA since WWE provides lots …