Law Firm Investigating WWE Sale To Endeavor
Did WWE get a fair price for their company?
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Apr 5, 2023
WWE's sale to Endeavor could already be causing potential legal issues, with a law firm announcing that they will investigate the transaction.
The Wisconsin-based Ademi LLP announced on Monday that they will investigate WWE for "possible breaches of fiduciary duty and other violations of law in its transaction with Endeavor".
Their complaint alleges that WWE's financial outlook and future prospects are strong, yet the sale to Endeavor only values WWE stock at $106 per share (with Endeavor holding a 51% controlling interest in the new company and existing WWE shareholders retaining a 49% interest).
They argue that the agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. They add that WWE insiders will receive substantial benefits due to the change of control.
Ademi are investigating whether WWE are fulfilling their fiduciary duty to all WWE shareholders and whether they received a fair a reasonable price for the company.
It encouraged existing WWE shareholders to get in touch with them if they would like further information.
