The Miami Herald has posted a new article covering the misconceptions which came out of the report of WWE recently losing $350 million in one day. The article speaks to those "who gleefully knock WWE by claiming the company doesn’t know what it’s doing, is losing money and will soon be going out of business."
Below are some excerpts, and you can read the entire piece at this link.
WWE’s stock took a downward spiral late last week, falling hard from the $20 price per share to the $11 range, after investors did not like the TV deal WWE signed with NBCUniversal. Investors expected a bigger deal financially.
Let’s look at two areas.
1) The television deal
WWE did not get the dollar amount investors wanted, but WWE did increase the amount of money it will receive from NBCUniversal annually for its television rights.
It’s been reported WWE’s new contract with NBC Universal will net $150 million annually, which is nearly a 70-percent increase from the previous deal worth $90 million per year.
What? The stock dropped. I thought WWE was losing money.
This is a fact and a big one. The company received a 70-percent raise from NBCUniversal.
Nick was born and raised in Detroit, Michigan, and lived there until the age of 18, when he decided to pack his flack jacket and move to New York City.
