Axios Highlights WWE Business Success Following Vince McMahon's Exit

For most companies, the departure of a CEO would usually result in a wave of uncertainty from investors, and can often even result in the stock price tanking. However, that simply hasn't been the case for WWE in 2022. The company has performed exceedingly well in the aftermath of longtime CEO Vince McMahon's departure over the summer, and news website Axios has now declared WWE "2022's media winner."

Nearly every major publicly traded entertainment company has seen its stock plummet this year, except World Wrestling Entertainment.

The company now has a market capitalization of nearly $6 billion, up from a little under $4 billion when it signed a landmark five-year streaming distribution deal with Peacock in 2021.

Why it matters: Investors are bullish on WWE as an acquisition target, especially in light of a hush money scandal that led to the retirement of the company's longtime leader and controlling shareholder Vince McMahon in July.

Details: WWE, along with other independent sports entertainment companies, could be hot targets for streaming companies looking to bolster subscriber numbers and global followings.

While WWE's exclusive U.S. streaming rights deal with Peacock doesn't expire until 2026, its two biggest live TV deals with Fox and Comcast are set to lapse in 2024.

Between the lines: Earlier this month, WWE ended its monthslong investigation into alleged misconduct by McMahon, concluding that he made nearly $20 million of previously undisclosed payments, most of which went toward settling sexual misconduct claims.

But the company has had a relatively smooth leadership transition in the wake of the scandal, keeping investors optimistic about its long-term growth strategy.

The return of live events following COVID-era lockdowns this year has been a boon for WWE.

The bottom line: Much of WWE's revenue is tied to long-term media contracts and big events, which has helped the company dodge much of the advertising-driven headwinds plaguing other media firms.