WWE confirms Vince McMahon is rejoining the board, stock spikes

World Wrestling Entertainment confirmed on Friday that former CEO and majority shareholder Vince McMahon will return to the company’s Board.

The company’s stock jumped 20% on news of McMahon’s return.

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“Today, we are announcing that WWE founder Vince McMahon will be returning to the Board,” WWE executives said in a press release on Friday.

The Board’s confirmation follows McMahon’s own announcement that he intends to reinstate himself as executive chairman and begin efforts to sell the company. He also said he would bring back former joint presidents Michelle Wilson and George Barrios as board directors.

Three current board members, JoEllen Lyons Dillon, Jeffrey Speed ​​and Alan M. Wexler, were removed from office. Two additional directors, Ignace Lahoud and Man Jit Singh, resigned from the board, effective Friday.

McMahon initially resigned as CEO after an investigation found he had paid nearly $15 million to four women over a 16-year period to claim sexual misconduct.

Even while on leave, McMahon retained control of the company as the majority shareholder. In a November regulatory filing, WWE said, “Mr. McMahon can effectively exercise control over our affairs.”

McMahon sees the need to return to a board position as the company faces negotiations over media rights and strategic initiatives moving forward, according to The Wall Street Journal. WWE has been seen as an acquisition target recently.

Analysts at MKM Partners, which has a buy rating on the stock, said in a note on Friday that “direct exploration of the sale to WWE makes a lot of sense.”

WWE confirmed there will be another “strategic alternative,” but said, “There is no guarantee that this process will result in a transaction.”

The company’s stock is up 75% over the past 12 months. The stock trades with a market capitalization of more than $6 billion.