WWE announced Friday that Vince McMahon, the majority shareholder and founder, was rejoining the board of the sports entertainment company several months after he had retired during an investigation into alleged misconduct. The move was accompanied by a board shakeup, and shares surged more than 22%.
McMahon had stepped down from the posts of chairman and CEO in July, and the Wall Street Journal reported over the summer that he had agreed to pay more than $12 million over the past 16 years to suppress allegations of sexual misconduct and infidelity.
The Stamford, Connecticut-based company also stated that it was going to be looking at "all strategic alternatives to maximize shareholder value."
Rumors have been circulating that WWE might consider selling the company to another entertainment firm. Recently, Chairman and CEO Mr. Vince McMahon wrote a letter to the Board of Directors, dated December 20th and published last Friday, to express his views on the matter and suggest that the organization take a look into "strategic alternatives". He stated that with the ever-changing media landscape, more and more companies are trying to own the intellectual property featured on their streaming platforms, thus making it an opportune time for WWE to maximize value for the shareholders and other stakeholders. The company had earlier announced in November that the investigation of a special committee formed to investigate into misconduct allegations had been completed, leading to the committee's disbandment.
Vince McMahon, a long-time figure in the professional wrestling industry, is returning to WWE after a near two-year absence. His arrival coincides with the broadcasting of some of the company's largest live events of the year, such as the Royal Rumble and Wrestlemania.
McMahon stated that he will not be making any changes to the duties or roles of the current management team, which includes his daughter Stephanie McMahon and son-in-law Paul "Triple H" Levesque.
The majority shareholder still had enough influence to replace three existing board members with himself and two others, Michelle Wilson and George Barrios. McMahon's return to WWE marks the latest chapter in his long-standing involvement in the wrestling world.