SeekingAlpha.com sent out a WWE alert this afternoon that says WWE stock spiked this afternoon in mid-day trading based on a rumor that AMC Networks is interested in buying WWE.
There’s no word yet about the rumor of AMC being interested in buying WWE. We know that WWE recently talked with AMC about their TV distribution but the note from SeekingAlpha.com is the first we’ve heard of AMC being interested in purchasing the company.
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UPDATE: – The rumors of AMC Networks being interested in purchasing WWE comes from the Betaville blog. They wrote:
“Good sources tell me cable group AMC Networks has been sniffing around World Wrestling Entertainment Inc, the US-listed company behind those ridiculous wrestling programmes, such as WWF, Raw and Smackdown.
AMC Networks has held at least one exploratory conversation with WWE – which saw its shares rise by about 30pc during last week – about some kind M&A transaction in recent months, according to “people familiar with the matter”. However, the talks are understood to have not gone anywhere.
Another source said bankers from UBS have been advising AMC Networks, owner of Sundance TV, on a potential deal and financing options.
This well-placed source said any transaction may value WWE at between $2.6 and $2.8bn.”
It should be noted that a deal between WWE and AMC is by no means a certainty. The chances of WWE selling are very slim. WWE’s George Barrios told Bloomberg last week that the company is not in merger talks.
