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Financial publication Street Insider posed an interesting question of how much WWE would be worth if it were sold, based on the market price for UFC of $4.0 billion.
An analyst for Wells Fargo came up with a range of $2.7-3.4 billion if WWE were sold, down from UFC’s sales price.
Street Insider and WF analyst Eric Katz looked at how similar their businesses are, including annual revenue in the $600 million range. However, the big difference is UFC has stronger net income, especially after WWE went through a transformation period switching from a PPV to WWE Network business model.
The valuation could change significantly in future years if WWE grows their Network subscription base as predicted, which would improve profitability.
In the present, WWE is still trying to grow profits after reporting a net loss in 2014 during the Network transformation period.
- 2014: WWE net loss of $30 million
- 2015: WWE net income of $24 million
- 2016: ??? – WF estimates $102.8 million EBITDA for WWE
- 2012-2014: UFC estimate of $120-150 million EBITDA