WWE Worth Up to $3.4 Billion Based On Massive UFC Sale

A few days ago UFC was purchased for a staggering $4 billion dollars, by far the richest sale in the history of professional sports.

UFC was launched in 1993 and purchased for just $2 million in 2001 by casino operators Lorenzo and Frank Fertitta.

Now eyes have turned toward WWE, a publically traded company with analyst hypothesizing a potential sale and how much it would realistically be worth. 

UFC had revenue of $600 million in revenue in 2015, which was said to be "significantly" higher than 2014. As a comparison, WWE had revenue of $658.8 million in 2015, up a not-so-modest 21% from 2014. WWE's net income was $24.1 million in 2015. UFC's 2015 net income is not available as it is a private company.

Wells Fargo believes WWE could now have an equity valuation of $36-$44 per share — essentially 80-120 percent above Monday’s actual stock price. WWE stock closed Monday at $20.46 per share, up about 5 percent for the day.

One analyst said:“Although we view this as an interesting exercise in determining the potential value of WWE — in our opinion, Chairman Vince McMahon is NOT selling the company anytime soon,” Wells Fargo wrote in a Monday post. “But with positive Network sub trends, a clean balance sheet, new TV rights deals just 2-3 years out, and now a clear sign of demand for somewhat similar content, we are raising our valuation range to $23-25 from $20-22.”

The analysts added: “It’s important to point out that there were several bidders for the UFC, with reports that this included the Dalian Wanda Group and China Media Capital. The point here is that content in the realm of sports has substantial value due to its live viewership — and WWE’s weekly shows are predominantly viewed live.”

The valuation for WWE is currently in the region of $3.4 Billion based on analysts calculations.