The day after WrestleMania 39, news broke out that WWE and Endeavor Group have agreed to a $21 billion deal. Both firms will soon be forming a new company merging both UFC and WWE. As per the deal, Endeavor now holds 51% controlling interest in the new company whereas existing WWE shareholders hold 49%. While both parties are still celebrating their alliance, reports of an investigation are coming out.
Recently, Ademi LLP, a corporate fraud and investigation law firm, announced it will investigate the deal between WWE and Endeavor Group. The wrestling company is going to be probed for possible breaches of fiduciary duty and transaction violations.
Ademi LLP looking for possible transaction law violations in the WWE Endeavor Group deal
According to the new deal, Vince McMahon will serve as the Executive Chairman of both WWE and UFC. On the other hand, WWE CEO Nick Khan will be the President of the new company. As to Dana White, he is going to continue his old role as the President of UFC.
Through the investigation, Ademi LLP aims to evaluate the terms and conditions of the deal between WWE and Endeavor Group. Moreover, it will ensure the wrestling company gets a good price.
Ademi LLP also looks to ensure two more things through the probe. First, it will see if WWE fulfills its fiduciary duties to all its shareholders. And second, whether WWE stakeholders received a fair price from the deal.
In its press statement, Ademi LLP wrote:
“The transaction agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. WWE insiders will receive substantial benefits as part of change of control arrangements.”
It appears that Ademi LLP thinks WWE might have taken an offer below its worth from the deal with Endeavor Group. This could be done in exchange for control arrangements and if so, the law firm wants to do right by the shareholders.
Vince McMahon made his return felt by dictating the Creative direction RAW immediately after the deal
On April 3, WWE announced its deal with Endeavor Group, and the same night, a Mr. McMahon effect was seen on RAW. It was reported that the Executive Chairman of the new company forced many changes before and during the show.
Rumors claim the whole RAW after WrestleMania this year was creatively led by Vince McMahon. It is said that he changed at least a few matches and segments at the very last minute. Just like old times, there was a lot of uncertainty about what and what not would end up airing on the show.
Nevertheless, as of now, it’s unknown if the 77-year-old has violated any laws to get control of WWE. Whatever the matter will be clear after Ademi LLP finishes its investigation.
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