WWE announced yesterday that they agreed to a new television deal to remain with NBCUniversal. Terms of the deal still haven’t been announced as of this writing. Thinking was that with the television deal being announced, WWE stock would rise as well.
As of a few moments ago, WWE stock has plummeted 45% and down to $10.85. At the end of the business day on Wednesday, the stock closed at $19.35, when word in Wall Street was that a new television deal was close and WWE could be doubling their rights fees.
The reason for the sharp decline is likely due to WWE estimating they will increase the average annual value of worldwide television agreements to about $200 million, with the revenue seen to be around $142 million in 2014 to $155 million in 2015 in the United States.
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Seems like Wall Street analysts were expecting more as stock earlier this year was over $30.00 a share due to the WWE Network and a huge increase in the domestic television deal. Analysts were expecting figures around $400 million due to the new deal for NASCAR and recently Major League Soccer.