Vince McMahon Sells Major WWE Stake to TKO and Endeavor

Vince McMahon, the WWE founder and former executive chairman of TKO Group Holdings, has agreed to sell a large portion of his shares back to the company. The transaction involves the sale of approximately $310 million of his shares at $89.01 each, which is a 4% discount from the recent closing price of $92.51. This deal is partly financed through a $150 million corporate revolving credit facility. Once the transaction is complete, the shares will be retired, thus reducing the company's overall share count.

The share sale comes after McMahon resigned from his position at TKO Group Holdings in January amid allegations of sexual coercion and other legal disputes, including sex trafficking and non-consensual sharing of explicit material involving a former WWE employee. Despite these controversies, McMahon will retain a considerable stake in the company, owning about 11.5 million shares valued at approximately $1.06 billion.

The transaction reflects a significant shift in McMahon's involvement with the company, as it potentially alters the control and decision-making structure within TKO. As a result of the sale, McMahon's stake in the company will be reduced to around 4.7%. The two purchasing entities, TKO and Endeavor Group Holdings, are looking to distance themselves from the controversy surrounding McMahon. After the allegations came to light, the relationship between TKO and WWE has been under scrutiny. McMahon's total proceeds from his various stock sales, including this latest transaction, are estimated to be around $1.5 billion.