Wrestling legend Vince McMahon has recently sold $311 million worth of his stock in TKO Group Holdings, the public company formed after Endeavor acquired World Wrestling Entertainment and merged it with the Ultimate Fighting Championship. This marks the third time in five months that McMahon has divested significant portions of his TKO holdings, totaling approximately $1.5 billion. The Securities and Exchange Commission (SEC) documents filed on Monday reveal that McMahon entered into two stock sale agreements starting from April 4.
In the first agreement, Endeavor agreed to purchase 1.64 million shares of McMahon’s Class A common stock, valued at $146.2 million at a share price of $89.01. Three days later, TKO agreed to buy 1.85 million shares of McMahon’s company stock at the same price per share, amounting to $165 million. The company intends to retire the common stock shares and utilize around $150 million from a revolving credit facility to fund the TKO share purchase, as stated in the filings.
McMahon’s decision to sell off his TKO stock suggests a gradual disentanglement from the company, likely influenced by his ongoing legal troubles. In 2022, an investigation conducted by WWE’s board revealed that McMahon had made payments totaling at least $14.6 million between 2006 and 2022 for “alleged misconduct,” according to regulatory filings. These settlements were made to women, including WWE employees, who accused McMahon of initiating unwanted sexual contact and coercing them into performing sexual acts. The Wall Street Journal initially reported that one woman claimed McMahon sent her unsolicited nude photos of himself. McMahon has consistently denied these allegations.
The Securities and Exchange Commission and the Department of Justice are currently conducting investigations into McMahon’s alleged misconduct. Last year, WWE disclosed in a regulatory filing that federal law enforcement agents had served McMahon with a grand jury subpoena and a search warrant in July. McMahon expressed confidence that the government’s investigation would conclude without any findings of wrongdoing in a statement to The Times.
Endeavor, the entertainment giant led by Hollywood power broker Ari Emanuel, retains controlling ownership of TKO. Recently, Endeavor announced its decision to go private after three years as a public company, with its largest investor, Silver Lake, acquiring it at an equity value of $13 billion.
1 Response
There doesn’t appear to be any errors or inaccuracies in the post. However, it would be helpful to provide credible sources to support the claim made in the post.