President of World Wrestling Entertainment Inc. Vince McMahon makes an in-ring appearance in the course of the WWE Monday Night Raw show on the Thomas & Mack Center on August 24, 2009 in Las Vegas, Nevada.
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Worldwide wrestling entertainment confirmed on Friday that former CEO and majority shareholder Vince McMahon can be reinstated on the corporate’s board.
The corporate’s shares rose 20% on the news of McMahon’s return.
“Today we’re announcing that WWE founder Vince McMahon will return to the board,” WWE executives said in a Friday press release.
The board’s confirmation follows McMahon’s own announcement on Thursday that he intends to re-assume himself as executive chairman and start an try to sell the corporate. It also said it could reinstate former co-chairs Michelle Wilson and George Barrios as directors of the board.
Three current board members, JoEllen Lyons Dillon, Jeffrey Speed and Alan M. Wexler, were faraway from their positions. Two additional directors, Ignace Lahoud and Man Jit Singh, resigned from the board effective Friday.
McMahon initially stepped down as CEO after an investigation found he had paid nearly $15 million to 4 women over 16 years to silence claims of sexual misconduct.
Even while on leave, McMahon maintained control of the corporate as majority shareholder. In a November regulatory filing, WWE said, “Mr. McMahon can effectively exercise control over our affairs.”
McMahon saw the necessity to return to his position on the board as the corporate faces media rights negotiations and strategic initiatives, in keeping with The Wall Street Journal. WWE has recently been spotted as a takeover goal.
Analysts at MKM Partners, which has a buy rating for the stock, wrote in a Friday note that “immediate exploration of WWE sales is smart.”
WWE confirmed on Friday that it could review “strategic alternatives” but said, “There isn’t any certainty that this process will result in a deal.”
The corporate’s shares are up 75% within the last 12 months. The shares are listed with a market capitalization of greater than $6 billion.