While looking around the Internet I came across some interesting information concerning our favorite wrestling promotion…WWE. No, it’s not that I really don’t understand why WWE let CM Punk leave, or that they push Batista to the top way too quickly. No this is more interesting for a business side of the sports entertainment business.
Apparently Rajah.com is reporting that there are a number of television network that are looking into buying WWE. This comes off the heels of WWE “successfully” launching WWE network. (I say it like that because too many people are having streaming problems, but people are still liking it.) One of the networks named was AMC.
This becomes very interesting, and I know it’s a bit of a stretch but here is why it wouldn’t be a bad idea for both parties. First, for AMC, they have been knocking original programming out of the park with “Mad Men” and “The Walking Dead”. The problem with that is once these programs go off the air, where do they move? Do they hope for another big hit, when they didn’t have anything really prior to “Breaking Bad”? Or do they put things in place that will help the build while they have the great programming? Keep the ball rolling, and by buying WWE, they get WWE programming that can pretty much work on its own.
Much like what Marvel does for Disney, if you leave them alone and let them do their thing, WWE will make major money for AMC. Also, WWE created a pay for network that AMC will be able to copy, and possibly create their own if these television distribution deal start squeezing them too much. If Comcast puts too much pressure on AMC to pay them more for viewing, then AMC can tell every to “F” themselves and go create their own network. The pressure to cave to cable providers is not as strong as it was before this deal.
For WWE, this deal would give them a network for their TV shows. Their deal with NBC Universal is coming to an end, so they are shopping their programming, so this deal would make WWE apart of a major network, which give them a home with the most upside. If WWE is doing well on AMC, then AMC will have no problem increasing the amount of time WWE gets on the channel. WWE won’t get that kind of deal anywhere else. NBC tried giving WWE more time, but always draws it back in favor of their own programming. Why? Because they get more money out of their own programming, without having to pay anyone for it. The other reason why this is a good deal for WWE is because Vince McMahon won’t be able to run the business forever.
Apparently he barely runs the business now, but he still has major input. Once he’s gone, who will run the company? Stephanie wants to take a step back because of her family, Shane is trying to create his own thing, and Triple H may be good with talent relations, but he doesn’t have the necessary qualities to be a CEO of a Fortune 500 company. The shareholders will not be happy if the wrong person is put in charge. But, if AMC buys WWE, then they already have the infrastructure to take on TV programs, and the executives that know how to run a major corporation. WWE shareholders will be fine with these types of people to run the business, and AMC already has Triple H to run the day-to-day event operations.
Although I’m guessing that this deal will never happen, it makes sense if it did. Both sides need something, plus the McMahon’s should make out pretty well, probably somewhere in the range of $2.3 billion on the buyout. I would love to see this deal, mostly because seeing Big Show as a walker on “The Walking Dead” would be awesome. (GIANT ZOMBIE) All kidding aside, WWE needs to make some kind of move before Vince is gone cause if they don’t, WWE could be in major trouble.