WWE News: New media deals termed 'transformational' for WWE
What's the story?
WWE's recent television deals with USA Network and Fox Network may have caused the company's position in the market to change completely. WWE was always a valuable stock to possess, they currently are one of the best-increasing stocks in the market.
As if that was not enough, WWE Co-President George Barrios revealed to CNBC that there was more good news to come for the company.
In case you didn't know...
After the negotiation period opened up for WWE's new television deals, networks were quick to enter the frenzy to sign a deal with the professional wrestling giants. The company found themselves party to several negotiations, but it was Fox and their current contract holder USA Network who placed the best offers.
In June 2018, the Sports Entertainment company signed licensing deals with USA Network for 'Monday Night Raw', and with Fox Network for 'SmackDown Live'. The deals are effective as of the 1st of October, 2019. The Fox deal will see Tuesday's SmackDown Live shift to Friday nights.
The heart of the matter
The television deals are set to increase the average annual revenue from WWE's United States distribution to 3.6 times its current value. According to Barrios, this means that the revenue could increase from the current $270 Million to $600 Million in only three year's time.
Their revenues from the second quarter also performed well, with $281.6 Million being reported at an all-time high. The WWE Network has also performed well with 10 percent more members.
The shares of the company have increased almost 290 percent in the last year alone.
Barrios talked about the deals and the effect they had on the company while commenting on the fact that despite the great form WWE has been of late, the deals would change everything for them.
"But certainly the deals we signed with Fox and with USA that we announced about a month ago have been transformational for us."
He talked about going all-in on the digital and social front despite initial doubts from some people, and at the end of the day, that had worked in their favour.
WWE's new television deals come into effect in October of 2019, and it will be interesting to see how they do on that front with SmackDown Live shifting to Fridays, with a larger distribution. The programming content may change as well, but as of now, that's nothing more than speculation.
What do you think of WWE's recent financial success story? Leave your thoughts in the comments below.