WWE shares smacked on management shakeup
World Wrestling Entertainment announced the departures of longtime executives George Barrios and Michelle Wilson on Thursday, an abrupt turn that sent shares of the entertainment giant plunging in after-hours trading.
Barrios and Wilson will step down as co-presidents effective immediately and give up their spots on WWE’s board of directors, the company said in a press release. WWE board member Frank Riddick will serve as interim chief financial officer while the company finds a permanent replacement.
WWE shares fell more than 20 percent on the announcement. Despite the management shake-up, WWE said it “remains well-positioned to continue its growth and operate effectively against its strategic priorities.”
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“I would like to thank George and Michelle for their 10+ years of service and contributions to the organization,” WWE CEO Vince McMahon said in a statement. “I am grateful for all that was accomplished during their tenure, but the Board and I decided a change was necessary as we have different views on how best to achieve our strategic priorities moving forward.”
The announcement came as WWE prepares to report fourth-quarter and full-year earnings on Feb. 6. The company said it expects adjusted earnings of $180 million.
The reason for the executives’ departure was unclear.
The wrestling giant is contending with sagging ratings for its flagship shows, “Monday Night Raw” and “SmackDown Live.” Rival promotion All-Elite Wrestling’s show, AEW Dynamite, topped WWE NXT in average viewership on Wednesday.
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“We have a deep team of talented, experienced and committed executives across the organization, and the board and I have great confidence in our collective abilities to create compelling content, engage our global fanbase across platforms, increase revenues, and drive shareholder value,” McMahon added.
The co-presidents left the company just days before McMahon’s sports and entertainment firm Alpha Entertainment, a separate entity from WWE, prepares to launch a rebooted version of the XFL pro football league.
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