WWE Was In Contact With ’60 Potential Counterparties’ Over Sale
Vince McMahon returned to the WWE board on January 5 to help oversee the upcoming round of media negotiation rights and explore other potential alternatives, which included a potential sale.
WWE eventually entered into a transaction agreement with Endeavor on April 3.
According to a new SEC filing, WWE was in contact with 60 potential counterparties during the process. WWE has confidentiality agreements with 20 potential counterparties.
Beginning on January 17, 2023 and continuing until April 2, 2023, when WWE executed the transaction agreement, WWE’s financial advisors, acting on its behalf, contacted and were contacted by over 60 potential counterparties, including strategic companies, financial sponsors, family offices and sovereign wealth funds. Between February 6 and March 21, 2023, WWE entered into confidentiality agreements with 20 potential counterparties. All but one of the confidentiality agreements entered into by WWE in connection with this process included a standstill provision for the benefit of WWE with a customary exclusion permitting parties to make proposals to WWE privately and confidentially, and each of the standstill provisions had a duration of at least 12 months. All confidentiality agreements entered into with standstill provisions included the customary exclusion for private proposals and a “fallaway” provision that would allow the counterparty to make a proposal to acquire WWE in the event WWE entered into a definitive sale agreement. Each potential counterparty that had indicated interest in exploring a strategic transaction with WWE was provided an opportunity to enter into a confidentiality agreement with WWE.
As part of the SEC filings made by WWE on May 12, it was revealed that New Whale Inc would be the name of the publicly traded company that encompasses WWE and UFC. The name is expected to change.
