Following the announcement on Sunday that the UFC has been sold for nearly $4 billion, several media outlets are speculating on what WWE would be worth if the company were to be sold. The Wrap is reporting that Wells Fargo says WWE has an approximate value of $3.4 billion with the UFC’s sale in mind.
According to the site, Wells Fargo believes WWE could have an equity valuation of $36-$44 per share, which is around 80% to 120% of the actual $20.46 stock price as of Monday’s closing price. That price was up 5% from the opening price on Monday.
Wells Fargo said,“Although we view this as an interesting exercise in determining the potential value of WWE — in our opinion, Chairman Vince McMahon is NOT selling the company anytime soon. But with positive Network sub trends, a clean balance sheet, new TV rights deals just 2-3 years out, and now a clear sign of demand for somewhat similar content, we are raising our valuation range to $23-25 from $20-22.”
The analysts continued, “It’s important to point out that there were several bidders for the UFC, with reports that this included the Dalian Wanda Group and China Media Capital. The point here is that content in the realm of sports has substantial value due to its live viewership — and WWE’s weekly shows are predominantly viewed live.”