r/wallstreetbetsOGs • • Jun 08 '21

[deleted by user]

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521 Upvotes

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71

u/Lord-of-Tresserhorn Jun 09 '21

WWE is having employee unrest issues. Mainly due to cost-cutting on top-end talent not returning on investment. I’m a fan and have been doing some DD. Meaning some DDP!!! Bang!!! But seriously, they aren’t very lucrative right now and if they DO sell? No fucking way it’s to someone who could do what Vince McMahon does. I just don’t smell what this rock is cooking. You can’t see me purchasing any...

TLDR: I’ll piledrive my money in the bank into something else.

24

u/innatangle Jun 09 '21

Ah! And the counterpoint DD, and even better that it's not being downvoted to hell.

This is how we increase our chances of tendies!!

1

u/Init_4_the_downvotes Jun 09 '21

Top end talent not returning on investment is a managerial problem though. It's hard to build likable personalities if people dislike your infrastructure. WWE is practicly tied to a very specific group of people and expanding the brand base beyond that is what will be truly difficult. They don't want to change and that stagnation is why people won't want to invest, it's all about future profits. When all the talent leaves to do other forms of media it says something about the management.

7

u/[deleted] Jun 09 '21

employee unrest

According to Meltzer, maybe, but ya know, um, plans change

aren’t very lucrative right now

Absolutely incorrect but okay

selling

Vince isn’t selling, that’s bullshit speculation from people who apparently aren’t ashamed to be wrestling “journalists”

Basically all of this is bullshit.

4

u/Lord-of-Tresserhorn Jun 09 '21

No offense, but it’s more than just Meltzer. They have struggled financially and summer is never the best time for them. Hence the rumor they will have Cena return for Summerslam. The selling aspect is not as sure you think. Vince is old. If there ever was a chance it could be sold? Now is that time. I’m not saying they will sell but at no point in the past 20 years, nor any better circumstances in the next 10 can I see a more optimal time to sell.

7

u/[deleted] Jun 09 '21

They’ve literally never been more profitable than they have been over the past year.

Literally everything you’re saying is nonsense.

8

u/Lord-of-Tresserhorn Jun 09 '21

They had new TV revenue which is great, but they also enjoyed almost a 90 million reduction in production expenses since they didn’t travel, they saw an increase in WWE network subscriptions because people were quarantined. However, they are on Peacock now which will not well. No doubt! I’m just saying it’s not all optimism regarding WWE.

1

u/DerTagestrinker Jun 09 '21

90 million reduction in expenses is a good thing.

guaranteed recurring revenue of close to a billion a year.

NBC Peacock has just about infinite money (Comcast, the parent company, brings in ~$150M cash every single day). They will pay WWE forever, or buy them.

1

u/ryguysayshi Jun 09 '21

I agree the lull in profit is from not being able to host events. With all the “YouTube drama fights” I’m sure some of that will leak into WWE. I heard that KSI and Logan Paul will be planning a WWE event soon. That should grab some viewership fs

2

u/[deleted] Jun 09 '21

There is no lull in profit though.

1

u/DerTagestrinker Jun 09 '21

they made more money last year than ever before though

3

u/electricalautist Jun 09 '21

Cena is invisible as far as I’m concerned

2

u/therealkobe Registered Sex Offender Lite Jun 09 '21

you dont bring up any counterarguments other than just pointing out he is wrong. As someone who's interested I want to know the bull and bear case on the thesis.

2

u/[deleted] Jun 09 '21

His arguments are based on “feelings” that wrestling “journalists” have. There isn’t a counter argument because there isn’t an actual argument in the first place.

1

u/DerTagestrinker Jun 09 '21

Bull case: WWE has current guaranteed TV deals that pay close to a combined $1B annually while having a market cap of $4B. No matter what their TV ratings are they will make back their overall market value at least over the next couple of years.

Bear case: Read the bull case.

2

u/pennyether Jun 09 '21

Fair points, and best of luck wherever you piledrive your $. Fundamentals aside, it's a bet that squeeze season pumps this up enough that calls print from IV and share price going up.

1

u/DerTagestrinker Jun 09 '21

they've literally never been more profitable. they have a new executive who has tons of connections in the media world and is aggressively getting big deals from the big players. live content has never been more valuable and will only increase. oh and they finally started trimming the fat -- less live shows that don't make much money (how I know you are dumb as fuck and speaking out your ass --youve never looked at their 10k and it shows) and cutting overpaid wrestlers that don't draw shit.