Investors sue Vince McMahon, alleging self-serving motives in WWE-UFC merger
It appears as though the WWE-UFC merger is under fire as investors have reportedly sued Vince McMahon for self-serving motives in his decision to sell a majority stake in his company to Endeavor.
According to The Hollywood Reporter, investors challenged the deal in a lawsuit and claimed that the quick sale process was so that McMahon could retain power following the sale.
The longtime WWE Chairman had been scrutinized after his transgressions of sexual misconduct and hush money were made public, which resulted in him stepping away from the company:
"If [Vince] McMahon was found to have breached his duty of loyalty, WWE stockholders could have sought his removal as a director...Such scrutiny appears to have prompted McMahon to seek a quick sale of the Company that also allowed him to continue running WWE." [h/t The Hollywood Reporter]
The WWE-UFC merger resulted in the creation of a new sports and entertainment entity called TKO, where Vince McMahon serves as the Executive Chairman.
One of the main reasons why investors weren't pleased was due to the sale being a stock deal rather than an all-cash deal and that the sports entertainment powerhouse could have received much better offers if they negotiated in good faith.
The lawsuit states:
"Not only did he secure a future for himself at post-merger WWE, [Vince] McMahon also stuffed his pockets and those of his loyalists before agreeing to a deal." [h/t The Hollywood Reporter]
It still remains to be seen what the results of the lawsuit will be as investors challenge the WWE-UFC merger.
WWE-UFC merger: Paul Levesque addresses whether TKO influenced his decision to sign CM Punk
WWE fans witnessed an incredible moment as CM Punk made his long awaited return at Survivor Series this past Saturday.
The former WWE champion-turned UFC fighter made his return after a strained relationship that saw him leave the company in 2014 and, most recently, working for All Elite Wrestling.
During the Survivor Series post-event press conference, WWE Head of Creative Paul 'Triple H' Levesque denied that the higher-ups at TKO influenced the decision to sign the polarizing superstar, saying:
"There has been zero push from anybody past WWE. It's myself, Nick Khan. To be honest, very few people knew about it [CM Punk's return] past that...We're doing our thing and we're trusted to do our thing, and trusted to do what we feel is right for business."
Watch the video from [22:22 - 23:01]