McMahon's Net Worth Surges Thanks To Shares of WWE Going Parabolic
Vince McMahon is a billionaire once again.
McMahon, who currently serves as the Chairman and CEO of World Wrestling Entertainment, Inc. (WWE), has seen his net worth soar in recent months thanks to the parabolic rise of the shares of World Wrestling Entertainment, Inc.
For a number of years, McMahon was said to be a billionaire on WWE TV shows. Shares of WWE slumped, and McMahon was simply a millionaire many times over, but not a billionaire.
Things have changed over the past six months or so, and "Billion Dollar Vince" is back.
Shares of WWE have been on a tear as of late and are up roughly 200% over the past year. McMahon owns roughly 40 million shares of the company - multiply that by a current share price of $24.07, and you have a stake in WWE that is worth about $963 million. Throw in McMahon's other assets (investments, houses, yachts) and you have a net worth that is well north of $1 billion.
Why have shares of WWE done so well over the past six months or so?
There are a number of reasons, but the biggest would be the company's expiring TV deals.
Networks are paying a premium for sports programming these days. The main reason? People tend to watch sports events live (rather than recording and watching later), which means that they also take in commercials (rather than fast forwarding). For advertisers, sports programming (we're including wrestling) is one of the best bangs for the buck in this day and age.
The WWE has hours and hours of programming every week, and this programming is gold for networks that are trying to both fill their schedules and bring in advertising dollars. The WWE also brings in droves of viewers aged 18-34, which is a key demographic for advertisers.
The WWE smartly had all of their TV deals expire at the same time and are currently in negotiations on a new deal. Some of the interested parties reportedly include NBCUniversal (current home of Monday Night Raw) and Fox Sports 1. Many people believe that the WWE will fetch 3-4x the money they are currently receiving in their new deal.
In addition, investors have also been excited about the impending launch of the WWE Network, which makes the company's past and present PPVs available for a low monthly fee. Many believe that the WWE Network will become a massive success.
In short - it's good to be Vincent K. McMahon these days.