World Wrestling Entertainment Inc.’s search for a buyer or some other business arrangement has “a reasonable probability of success” that could draw the interest of streaming giants like Netflix Inc. NFLX and Amazon.com Inc. AMZN, Wells Fargo analysts said Tuesday.
Those analysts upgraded WWE WWE shares to their version of hold from sell. They increased their price target to $100 from $52, saying interest from buyers and the value of TV rights could give the company a value of as much as $8 billion. The Wells Fargo analysts said that unlike a “financial” buyer — or someone who views an acquisition more as an investment — a so-called “strategic” buyer would air WWE content through their own networks. They would also likely pay less than a financial buyer.
WWE last week said it retained advisers to handle legal, financial and communications matters as it goes through its review of strategic alternatives. Vince McMahon, in a statement, said WWE’s “upcoming media rights cycle will take place amid a rapidly evolving media and entertainment landscape.”