Report: Reason WWE's Stock Price Fell Last Week Revealed

WWE's stock price has only been rising in 2023 but the share price took a tumble last week on Wednesday, May 17, falling from $107.22 to $99.27 over the course of the day. The share price has steadily climbed since then and sits at $102.07 as of the time of writing. 

According to Brandon Ross and Rich Greenfield of LightShed Partners, the stock price fall happened after a meeting in which Endeavor representatives voiced their concerns that FOX were not willing to meet the 1.75x increase in media rights for SmackDown that many analysts expect. This caused a "complete panic" and led to the tumble. 

Brandon Ross said on a podcast: 

"This week, there was a meeting. This is what triggered everything. There was a meeting that we got tons of calls from investors about in which, apparently, the Endeavor team said that FOX was not a good partner and they don't want to renew a deal with them, and that the 1.75x renewal that's out there is too high. That set off a complete panic. The stock was, like, tanking the day after. What's amazing to me is that it was probably a 10-person meeting, and it took this entire stock down because of probably the game of telephone and panic, and all these things that happen in the, quote, 'media mafia' hedge fund world."

Ross then noted that it appears FOX is "talking down their interest" in renewing SmackDown and the network don't want to fork out an increase to keep the blue brand on the channel. 

Friday Night SmackDown has aired on FOX since October 2019. The rights deal for SmackDown expires in 2023 and it is believed the exclusive negotiation period over a rights renewal recently expired which means WWE can now speak with other interested parties. 

The media rights for Monday Night Raw, which currently airs on USA Network, also expire in 2024.

H/T to POST Wrestling