Much like many other huge corporations, WWE survives and — right now — thrives because of their valuable stock.
Over the past few days, I have been discussing WWE’s rise in market value, as well as the reason behind WWE’s stock price exploding, with a stockholder (who has requested to remain anonymous). The person in question got in contact with Wrestling Standard after reading our exclusive piece on the on-going lawsuit between The New Day and Kellogs, inquiring more details to investigate how the story could affect WWE’s stock (if picked up by mainstream news outlets).
The identity of the shareholder will not be revealed, however, the individual is happy for me to say that they are not an employee at the company but regularly deal with WWE’s stock in relatively high quantities.
The stock insider outright stated that many of the shareholders, “may that be on Wall St. or at Lindsell Train, Vanguard Group, or Eminence [Capital]” — large institutional stockholders — “do not watch the show”, or even the PPV’s, for that matter.
They keep up with the company, of course, but not in a granular sense. They only keep tabs on the top-level news, PR efforts, etc., and on that front, WWE has never been stronger.
“Everyone that I’ve spoken to that invests in WWE do not watch the shows. Their fantastic PR, market share and value as a whole is the thing we look out for — not the shows or storylines.”
The company recently revealed that they will be travelling to Australia, and even announced that will be entering into a new market; they will be starting a new show in the UK, NXT UK. Additionally, the company confirmed a new deal with FOX for SmackDown Live, which is reportedly worth over $1B, which takes effect in 2019.
Investors, of course, invest their capital in companies that are growing rapidly and entering into lucrative, profitable markets. Additionally, investors look to trade with companies that have name value and a solid financial history. Which is why, right now, WWE is one the best assets to invest in.
With the announcement of the new Fox deal, WWE’s stock exploded.
“Everyone I know, even those who don’t know anything about WWE aside them being a wrestling show were talking about them when that Fox news broke. That stock became insanely valuable”.
The investors not watching the product should not come as a surprise. However, what is a surprise is that WWE, it seems, are only catering to them; the investors are the only consumers, in a sense, WWE truly care about. It would, of course, be asinine to say that WWE does not care at all about the revenue the fanbase generates, but the real money isn’t from them — it’s from stocks and shares in their ever-profitable organisation.
“They aren’t catering to the fans. They are following the blueprint for a perfect share price, by any means necessary. Which is what a company at that size, in all honesty, should be doing.”
The brutal reality, that the stockholder echoes, is one that fans have regretfully accepted: WWE only care about your money, their public image and their stock. The rest, including their product, simply doesn’t matter. Furthermore, all the while their stock remains high (currently $76.29 per share), they have no real obligation to change. Ironically, their flagship show hit a new low this week, with the lowest number of live viewers ever. And if that doesn’t speak volumes, I don’t know what does.