WWE share price plummeted a few percent on announcement of the sale to endeavour. It is recovering today but has not not yet fully recovered to pre-sale price.
FAQ
>B-but why isn't it absolutely skyrocketing?! Aren't investors happy they'll get a lot of money from the sale??
They won't. It's not even a real sale. It's a weird combination of merger and separation that will leave the E + UFC a separate entity from the rest of Endeavour. The investors will get shares in the new merged company. This is why endeavour got away with saying they weren't going to """buy""" WWE during their investors call. Technically they didn't.
>B-but won't the shares of the new entity be higher valued?! Cant the investors just sell those and get $$$
It's not clear this will be the case. Endeavour is up to its eyeballs in debt. They will probably transfer a lot of this debt to the new E+UFC company as part of the transaction that creates it. Obviously, big debt means big interest payments and less profits. It also means lower value of assets-liabilities. Ergo, a lower share price. This is why there was the muted negative reaction on the market.