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.
and Amazon.com Inc.
Wells Fargo analysts said Tuesday. Those analysts upgraded WWE
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 …