He paid nearly $15 million to four women. Over a 16-year period for sexual misconduct allegations.
World Wrestling Entertainment confirmed Friday that former CEO and majority shareholder. Vince McMahon will be reinstated to the company’s board.
The company’s stock jumped 20% on news of McMahon’s return.
“Today, we are announcing that the founder of WWE, Vince McMahon, will return to the board.” WWE executives said in a press release Friday.
The board’s confirmation follows McMahon’s own announcement Thursday. That he wants to reinstate himself as executive chairman. and begin efforts to sell the company.
Three current board members, JoEllen Lyons Dillon. Jeffrey Speed and Alan M. Wexler was removed from their position. Two more directors, Ignace Lahoud and Man Jeet Singh. Resigned from the board effective Friday.
He paid nearly $15 million over a 16-year period to four women to hush up claims of sexual misconduct.
McMahon retained control of the company as the majority shareholder. In a November regulatory filing. WWE said, “Mr. McMahon can effectively exercise control over our affairs.”
According to The Wall Street Journal, McMahon sees the need to return to his board position. As the company faces negotiations over media rights and strategic initiatives.
Analysts at MKM Partners, which has a buy rating on the stock, said in a note Friday that. “The immediate pursuit of a sale makes a lot of sense for WWE.”
WWE confirmed Friday that it will review “strategic options.
The company’s shares have risen 75% in the past 12 months. The stock trades with a market capitalization of over $6 billion.
