WWE boss Vince McMahon took a colossal bodyslam from the stock market Friday, May 16 after investors were reportedly unhappy with his corporation’s new television deal with NBCUniversal.
The end result saw the longtime wrestling mogul $350 million lighter in the wallet and out of the billionaire ranks.
Via MSN Money:
The stock was down more than 40 percent since the market open. In fact, the stock, which had closed just below $20 on Thursday, opened down below $11. That immediately knocked the WWE boss out of the billionaire ranks, putting his net worth now at an estimated $750 million.
“The company’s valuation could take a heavy beating this morning, as the new domestic TV deal with NBCUniversal likely disappointed investors,” he wrote in a report downgrading the price target for the company’s stock from $29.12 to $19.96.
WWE executives kept an even tone but offered little additional guidance. “We never commented publicly on the expectation,” said George Barrios, chief strategy and financial officer. “We said we were undervalued by the math that we had done.”
The new TV deal hit at a turbulent time for WWE and McMahon (pictured). The company’s shares shot up 89 percent in the first three months of 2014, and McMahon’s net worth peaked in mid-March at $1.6 billion.
Cutting TV deals is how McMahon built such a massive fortune in the first place. He got his start in 1972 working for his father’s small, regional wrestling promotions company. Ten years later, he bought out his father and set about taking WWE national.
McMahon is no stranger to gambling with his fortune. In 2000, he first became a billionaire only to see his title relinquished after enduring a similar situation with the stock market.
Photo: Ivan Nikolov/WENN.com