WWE stock dropped as much as 6.7 percent on Tuesday and at least one stock exchange analyst is blaming the drop on the new storyline with Donald Trump.
Dow Jones News Plus’ Maxwell Murphy says: “For starters, public companies don’t announce mergers and acquisitions involving one of their most lucrative brands as part of staged, circus-like events. And if, heaven forbid, they do, they certainly must file with alacrity an 8-K with the Securities and Exchange Commission to announce and explain the pact, which WWE hasn’t done.”
Murphy also noted that he contacted the USA Network after they sent out the press release for the angle. Murphy wrote, “A USA spokesman referred questions to WWE about whether the release could mislead WWE investors who don’t get the joke, or run afoul of Securities and Exchange Commission disclosure rules. An SEC spokesman wasn’t familiar with the situation, but doubted the agency would have a comment one way or the other about the propriety of such a press release.”
A WWE spokesperson noted in the article that the storyline Trump sale “will make for great television,” but wouldn’t directly admit that the sale was indeed a storyline.
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