WWE Stock Drops Due to Vince McMahon Investigation

• WWE Board of Directors delivered a stunning report on Vince McMahon’s investigation.
• Yesterday’s closing share price was $67.18.
• 2.1 million WWE shares changed hands yesterday.

WWE Board of Directors delivered a stunning report on Vince McMahon’s investigation, WWE’s stock plunged 3%.

WWE shares began at $66.19 before ending at $64.87 yesterday, despite the announcement (and a variety of other factors) (adjusted). Yesterday’s closing share price was $67.18. WWE had a great start Thursday morning, with highs of $67.73, outperforming the indices once again, before falling to a level close to Dow Jones. WWE’s stock is down 3.44 percent as of this writing, compared to -2.42 percent for the Dow Jones and -3.25 percent for the S&P 500.

WWE’s stock price may be the least of its concerns, as Wrestlenomics’ Brandon Thurston (h/t Wrestling Inc) revealed 2.1 million shares of WWE stock were sold hours before the WSJ news.

“2.1 million WWE shares changed hands yesterday, about 1.5 million more than an average day, all before the WSJ story broke just after the market closed,” wrote Thurston.

“It may be worthwhile to read the paragraph from the code of conduct headed, ‘Prohibition Against Insider Trading.’”

As information surrounding pro wrestling’s greatest story of the year continue to emerge, such a massive amount of stocks being sold before of a potentially devastating inquiry signals insider trading may be at work.

“Ultimately, a sale has to be approved by Vince because he owns the voting shares. I don’t know how Vince would be ‘out’ out. He could be out of power, but he’s still got the voting share power…there’s been talk there for six years of Vince wanting to sell, just getting the right price, and nobody’s offered that right price.”

There is a small list of possibilities that would result in a) Vince McMahon losing control, b) WWE being sold, or c) all of the above.

If WWE is shown to have engaged in insider trading, a quid pro quo in regards to an improper connection, and/or an ex-employee was given “hush money” from WWE funds, Vince McMahon’s probable demise would not be far behind.