WWE Stock Reportedly Had A Significant Drop

WWE started a 10-year partnership with the Saudi General Sports Authority about 5 years ago that will see the company be paid a huge amount of money to hold 2 Premium Live Events per year in the country. The company was then sold to Endeavor Group Holdings Inc. and the plan is to merge the WWE and the UFC into one company called TKO Group Holdings Inc. Despite this, the promotion’s stock would significantly drop to $94.44 on Thursday after closing to $110.05 on Wednesday.

According to SeekingAlpha.com, the drop in stock price is due to the ripple effect of a Saudi Arabian investment fund investing in the UFC’s competitor, PFL. It was also noted on the report that Endeavor Group’s stock also dropped as it is the parent company of the UFC and both company’s stock is down as investors are worried that huge money is being put into the competitor of TKO despite the PFL being a distant number two competitor to the UFC.