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July 28 Update: WWE confirmed Thursday that it has acquired one of the buildings in Stamford, Conn. that was placed up for bid in an auction when a real estate developer filed for bankruptcy.
In Thursday’s conference call with investors, financial executive George Barrios confirmed that WWE acquired a facility adjacent to their TV production facility in Stamford.
Barrios said the new facility solves short-term operational constraints and meets their long-term space goals.
Update: WWE disclosed more details on the acquisition dated June 29 in their 10-Q SEC filing that is expected to close in the Third Quarter.
- The official purchase price was $26.9 million
- The transaction will be funded by assuming the existing mortgage of $23.0 million
- WWE paid $2.687 million cash deposit towards the purchase price
WWE said the company “expects to acquire all of the rights, title, and interest in a building located in Stamford, Connecticut. The Company currently leases a portion of the building, and expects to expand its use of space in the building and leave the remaining space leased to a current tenant.”
June 25 Report
WWE recently placed a $27 million bid on a building that could help its TV production facility in Stamford, Connecticut, reports the Stamford Advocate.
According to the report, WWE is looking to buy an office complex that was recently put up for sale as part of bankruptcy proceedings.
“An opportunity arose that made sense for us to pursue,” WWE said Friday in a statement to the newspaper. “If we’re successful in the purchase of the building, WWE would become the building’s landlord and assumes the previous owner’s lease obligations.”
There are more than 100 bidders for a total of eight properties that were made available for bidding. WWE offered $3 million above the minimum price for the office complex they bid on.
Last year, WWE abandoned long-term plans to build its own TV production facility. From WWE’s Fourth Quarter 2015 earnings report in February:
For the fourth quarter 2015, Corporate and Other expense includes a $7.1 million non-cash abandonment charge to write-off the value of costs related to a media center expansion project. These costs were incurred several years ago, but the expansion was delayed due to the economic uncertainty at the time. Recent changes in our operations further delayed the expansion project. In light of the Company’s current operating model, including the increased production demands of WWE Network and headcount requirements, the Company has made the determination that these plans would not be viable and as such have deemed them abandoned.
If WWE is successful in their bid, the office park would presumably replace plans for the TV production facility by expanding the space where WWE already has a presence.