WWE CEO Vince McMahon Loses $350 Million, A Third Of His Fortune, In A Day

[dmcowen674]

5-19-2014

http://www.thepostgame.com/blog/dis...n-loses-350-million-third-his-fortune-one-day

WWE CEO Vince McMahon Loses $350 Million, A Third Of His Fortune, In A Day

According to Forbes, McMahon, the chairman and CEO of WWE, lost $350 million in a span of 24 hours.

The loss was the result of a few factors, including lack of confidence in WWE's new online streaming network and a somewhat lackluster new TV deal.

The new online streaming network has only picked up 700,000 subscribers since launching, and WWE said it expects the network to lose between $45 million and $52 million this year.

Together, the weak performance of the online streaming network and Thursday night's announcement of the new TV deal led WWE's stock to drop $8.86 (from $20.13 to $11.27).


That resulted in a huge loss for McMahon, whose net worth peaked at $1.6 billion in March.



Then, Forbes reported, "shares dropped 29% the week after WWE announced its new online streaming network had only 667,000 subscribers, taking a $325 million chunk out of McMahon's fortune."


The stock's next big tumble Friday wiped out another $350 million -- nearly a third of his value.


A lack of confidence in the product and falling shares have dropped his fortune to an estimated $750 million.

 

[dmcowen674]

The Stock Market giveth, the Stock Market taketh

 

[spamtly]

1. Who cares if rich people lose money?
2. You know that wrestling is fake right?

 

[zanejohnson]

inappropriate comment deleted

admin allisolm

 

[DCal430]

WOW Only 750 Million, the horror, how will he feed is family.

 

[cuafpr]

its not really money in the common term of it anyway.. it wasn't sitting in his bank....

 

[lamedude]

He could've lost 7 more elections with that.
Everyone should've seen it was a bubble. Ratings are down yet they expected NBCU to pay up to renew their TV deal because NASCAR got a fat $4B deal. They have no chance in hell in getting their projected 2-3 million network subs (the lapsed fans they talk about have Cena nuff and aren't coming back). They went all in and gave away their biggest show yet 400K opted to pay more to watch WM on traditional PPV.

 

[JEDIYoda]

its not really money in the common term of it anyway.. it wasn't sitting in his bank....

you have no clue do you?

 

[lamedude]

I'd be shocked if any of Vince's stock gets sold while he's alive so for all intents and purposes that money doesn't exist.

 

[Gonad the Barbarian]

$350 million??

 

[Atomic Playboy]

Guess he better cancel his order for that superyacht armada.

 

[alzan]

1. Who cares if rich people lose money?
2. You know that wrestling is fake right?

1) Not all people who own WWE stock or who own shares of mutual funds that invest in WWE stocks are rich; it wasn't just McMahon that "lost his shirt."

2) No shit, Captain Obvious. That's been known for a long time; anything beyond high school or college level wrestling is staged/scripted.

That being said, the WWE employs stunt persons who need to rehearse and perfect their craft to give the illusion of wrestling; no different then countless actors and stunt people in television/movies.

 

[Kadarin]

I'm here playing a tiny violin for him.

 

[cabri]

I'd be shocked if any of Vince's stock gets sold while he's alive so for all intents and purposes that money doesn't exist.

This ^^
It is all proposed value, not actual value until the stock is sold.

 

[Newell Steamer]

I am not happy for this to have happened to Vince. He owns and runs this company; it's performance is impacting his pay. So, I see the right thing happening; i.e. make a bad decision, take the wrong direction - suffer for it.

Where as other companies, who have CEO making millions, send the company spiraling into a pit of red and said CEOs still walk away with their salary and golden parachute. Why would a board or company agree to a deal where the CEO still rakes it in, even if it's underperforming while said CEO is at the helm?

 

[Jadow]

This is just paper wealth WWE stock shot from 9 to 25 in like 9 months, now it's down to 10.85 or so.

Put it another way, his wealth is UP 20% from June 2013

 

[dmcowen674]

I am not happy for this to have happened to Vince. He owns and runs this company; it's performance is impacting his pay. So, I see the right thing happening; i.e. make a bad decision, take the wrong direction - suffer for it.

Where as other companies, who have CEO making millions, send the company spiraling into a pit of red and said CEOs still walk away with their salary and golden parachute. Why would a board or company agree to a deal where the CEO still rakes it in, even if it's underperforming while said CEO is at the helm?

One of the articles said he could be ousted as CEO.

 

[lamedude]

Vince owns most of the stock and his kids own a couple million shares. IMO he'll take the company private before capitulating to Wall St. Yelling your fired to the investors alone would be worth the price to him.

 

[OverVolt]

Paper profit and paper loss, who cares. That money never existed anyway. Reminds me of LinkedIn. Worth billions and doesn't even turn a profit.