WWE-UFC Merger Deemed 'Sham Sale' In New Lawsuit
The WWE-UFC merger has been called into question in a new lawsuit
The process behind the official merger of WWE and UFC under the TKO umbrella has been called a ‘sham sale’ per a new lawsuit.
The suit, filed in Delaware by Laborers’ District Council and Contractors’ Pension Fund of Ohio is aimed at top WWE personnel such as Vince McMahon, Nick Khan, and Paul Levesque amongst others.
In the suit, it’s alleged that McMahon “used his domineering personality and control over WWE” in order to facilitate the sale, with McMahon “manoeuvring to secure his power and control over the company in the face of mounting stockholder discontent and government investigations.”
The suit goes on to suggest that McMahon spurned higher offers in favour of a quick deal with Endeavor CEO Ari Emanuel, his “longtime friend,” in order for McMahon to stay in charge of WWE.
It is also claimed in the filing that the board was unfairly stacked with McMahon loyalists who “conjured up a sham sales process designed to favour Endeavor and exclude other bidders seeking to axe McMahon,” with the $21billion price tag in the deal said to have ‘undervalued WWE’. It is further alleged that other bidders - redacted in the complaint - would have outdone the TKO deal with all-cash offers, with it claimed that that one of those suitors had “significant runway to increase its offer due to the outsized synergies it could generate.”
The company is yet to comment on the lawsuit.