>>10133774Now back to the financials. WWE is a much more mature company with a brand and network tv access. Their EBITDA was close to $300mm in 2022, with revenue of $1.3b. They were valued in the merger at roughly $9b (7x revenue, 30x EBITDA).
If AEW did a sign a $200m per year deal for all content, the only residual revenue would be merch/live attendance (both reported by wrestlenomics as down). Not knowing what increased spending would be involved, I can only assume profitability would not increase 2x like revenue did. They’d need to be very fiscally responsible (and haven’t shown they can be).
As such, no investment bank would value AEW based on profitability, and they certainly would fetch a 30x multiple. Based on revenue and cable access (discounting for lack of track record, private status and no sec documentation, shaky management team) I’d probably take that $220mm in revenue and give a multiple based on that of 3-4x, making AEW worth about $600-700mm if this deal comes to fruition. Not shabby, but honestly I’m being generous. It may only be worth $400mm with Tony/Dad out of pocket $200mm with minuscule returns so far. Lots of money for sniffing jocks.
