WWE News: Vince McMahon made a bold move following WrestleMania 39 as UFC Parent company Endeavor bought WWE’s majority shares. After the press release, there is a lot of buzz regarding the new deal between WWE and the Endeavor Group. Moreover, WWE and Endeavor came to a new agreement for WWE UFC merge. However, the good times for the former WWE Chairman have halted as Vince McMahon and WWE will undergo an investigation.
WWE’s sale to Endeavor Group brought several miscalculations and doubts among the shareholder litigations. This has resulted in an internal investigation for both Vince McMahon and WWE for its new deal.
WWE News: Vince McMahon and WWE face legal investigation for sale with Endeavor Group
Vince McMahon sold its majority shares to Endeavor Group for a big price allowing UFC’s Parent company to take 51% control of WWE. However, the deal has not satisfied Ademi LLP, a law firm that overlooks shareholder litigation.
#VinceMcMahon is back in the creative side of things in #WWE, but not in the clear, Ademi LLP ( a law firm) issued a press release announcing an investigation into the sale to #EndevorGroup and looking for "possible breaches of fiduciary duty and other violations of law." pic.twitter.com/nNOBD8c2CO
— Good Ol' JM (@GoodOl_JM) April 4, 2023
Recently, Felix Upton of Ringside News reported Ademi LLP looking into the new deal to find out whether the WWE Board of Directors obtained a fair and reasonable price in the sale process.
Ademi LLP has alleged WWE for having a low transaction share value despite a good financial outlook and excellent prospects. The share value for each share is approximately $106 which is determined to be low by Ademi LLP. Further, the law firm alleges WWE that the transaction agreement limits other competing bids and announced an investigation for notable points.
“We are investigating the conduct of WWE’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for WWE.”
WWE and Endeavor Group had a new agreement for $21 billion in a WWE UFC merger. Currently, the UFC Parent company has 51% control over WWE while the rest of the shareholders have 49%. That being said, Endeavor will have a heavy influence on big PLE and creative bookings.
What do you think of WWE undergoing investigation following its sale with Endeavor? Tell us in the comments.
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