Raise your hand if you want to see WWE expand SmackDown Live to three hours every week. Anybody?
If you’ve ever considered purchasing WWE stock, one highly-reputed Wall Street analyst says now is the time to buy. One reason they listed for having this belief that WWE has big money ready to grab if they expand SmackDown Live.
Guggenheim analyst Curry Baker met with WWE recently and believes the company’s stock is going to continue rising. Baker listed multiple reasons the company will see continued growth in the near future. Increased content and a potential new pricing system for the WWE Network likely represent the biggest opportunities for the company.
“Additionally, we see incremental content deals (‘third hour’ of SmackDown), sponsorship growth, and the WWE Network re-launch as significant opportunities not currently reflected in our estimates,” Curry wrote.
Curry estimated the value of
In terms of a change to the WWE Network, a new tiered-pricing system has been talked about for some time. WWE sent out a survey to fans in order to get feedback last fall.
Curry also believes WWE is under-performing in terms of sponsorship deals. The analyst believes the company could add an additional $50-$100 million over the next 3 years by improving its sponsorship deals.
As a public company, WWE has an obligation to its shareholders to maximize revenue. On the other hand,
An additional $75 million per year would be hard for WWE to turn down. Whether or not Fox is willing to offer WWE that third hour is another story entirely.
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