WWE shareholders file lawsuits against Vince McMahon, Nick Khan, and more, alleging “Sham Sales Process” for WWE-UFC merger
WWE found itself in a legal bind after ex-investors accused the corporation of practicing sham sales process.
Vince McMahon and Nick Khan (via TMZ)
In September 2023, the Stamford-based promotion made an official announcement about its merger with the UFC. The merger between both promotions led to the establishment of TKO Group Holdings. A lot has transpired in WWE since the merger came into effect. Moreover, a recent report suggests that former WWE shareholders have filed lawsuits against Vince McMahon, Nick Khan, and others, alleging a “sham sale process.”
The formation of TKO Group Holdings was followed by an immediate wave of talent and staff releases, which outraged many fans. McMahon was also thought to be briefly back in the company, fiddling in the creative department. TKO Board Members, on the other hand, labeled the 78-year-old as a “risk factor,” stating that he attracts negative press for the company. Now some ex-shareholders have taken legal action against WWE higherups.
Vince McMahon sold an estimated 8.4 million shares of his TKO Group Holdings on November 15. Many people felt that this meant that the former would eventually leave the company. McMahon, nonetheless, still owns 12% of the company. According to the lawsuit, WWE was swiftly sold to Endeavor in order to maintain McMahon’s position of power.
According to The Hollywood Reporter, the lawsuit was filed by former WWE investors in Delaware by an Ohio Pension Fund. The lawsuit also includes the names of Paul Levesque, a.k.a., Triple H, Michelle Wilson, and George Barrios, among others. Hunter’s name was embroiled as he was cashed out multimillions amidst the merger. Moreover, TKO Group Holdings has yet to respond to the lawsuit.
Ex-WWE shareholders claim that Vince McMahon rebuffed better offers from other institutions in favor of the Endeavor deal
As reported in the aforementioned article, WWE has landed in legal trouble after a group of former WWE investors took legal action against Vince McMahon and Nick Khan. The claim suggests that TKO Executive Chairman rejected two other better payment offers as it would have necessitated him to step down from the company.
According to the Hollywood Reporter, the lawsuit claim indicates that the UFC-WWE merger was finalized at $95.66 per share. It appears that the cash offer by Endeavor was significantly less than what the other companies were willing to offer. The interested parties seemingly offered a deal of $95-$100 and $90-$90.75 per share.
According to the report, WWE declined these bids because McMahon sought a proposal that would allow him to stay in the saddle. As a result, the company entered into a merger agreement with UFC, allowing him to become Executive Chairman of TKO. Moreover, despite the merger, McMahon’s power is gradually diminishing due to the investigation of the sexual misconduct allegations charged against him.
In case you missed it:
- WATCH: CM Punk’s wholesome gesture for WWE Universe after Raw went off-air
- CM Punk seemingly acknowledges Bloodline’s Paul Heyman for life changing advice on Raw