(WAFB) - Things are not looking good for World Wrestling Entertainment.
CNN business reporter Paul La Monica reports shares for the sports entertainment giant fell 9% Thursday morning after the company reported “considerable uncertainty” about its strategy and outlook. The stock has plunged more than 30% in 2020, La Monica says.
The company said Thursday it was considering "alternative strategic options for the WWE Network," its streaming service. Currently, they charge a monthly subscription fee of $9.99 for the network. WWE has teased a premium tier option, but that has not come to fruition.
Last month, two co-presidents of WWE announced their departure from the company, but chairman and CEO Vince McMahon said he was confident the company would turn things around.
McMahon’s latest venture, a reboot of the XFL, launches Saturday, Feb. 8.
While there is still much speculation about how WWE ended up in such hot water, the recent emergence of a new competitor can not be ruled out.
All-Elite Wrestling was established in 2019 and has been red-hot as of late. AEW’s weekly program “Dynamite” is currently on a six-week ratings battle winning streak since Jan. 1 against NXT, one of WWE’s weekly programs.
The promotion sold out the MGM Grand Arena for their inaugural event on May 25, 2019. The event, “Double or Nothing,” featured former WWE superstar and future WWE Hall of Famer Chris Jericho in the marquee bout. Jericho is a six-time world champion in WWE, a nine-time WWE Intercontinental Champion, and a seven-time WWE tag team champion. He has been named one of the greatest professional wrestlers of all time.
Cody Rhodes, son of WWE Hall of Famer Dusty Rhodes and half-brother of former WWE wrestler Goldust, serves as AEW’s Executive Vice President. The company has signed some of the world’s most elite talents from independent and overseas wrestling promotions, the same companies that brought WWE highly successful franchise talents like AJ Styles, Daniel Bryan, Shinsuke Nakamura and Seth Rollins.