>>11951490I think the Vince stock thing is a poor excuse. Traders will always look at the numbers first and having stock for sale isn't a major issue if the numbers are strong. And the UFC debt is a retard conversation for non-industry people who don't know what they're talking about. It means nothing at all.
Here's the problems imo:
>The speculation of the merger vastly inflated the price and we're seeing a correction >The SD TV rights came in under projections, which is casting doubt on the projections for the Raw and UFC rights value projections >The uncertainty of the PFL on UFC revenues has people a little concerned >The expected synergies such as joint WWE/UFC PPVs in the same building has not yet happened>The management structure still feels like it's in flux in terms of who is doing what >The Saudi revenue stream is at risk due to global eventsMost analysts have TKO as a Buy/Strong Buy and see it eventually resting at anywhere from $120 in the next year or so with $175 goal in the medium term. Presumably that is based on projected rights deals coning in close and that's not happened yet. We'll know more in maybe 2 years when the Raw/UFC deals are finalised, the MMA industry shakes out and we see what sort of fees Peacock are thinking for the Network renewal, that's really the time where analysts will understand the stock more. We haven't even seen any financials yet which reflect the post merger cost savings.
Two mature companies merging together takes a few months to a couple of years to be stabilised in their new business processes and most aren't going big on TKO until they've seen some numbers.
