World Wrestling Entertainment (NYSE:WWE) CEO Vince McMahon settled a rape accusation by former wrestling referee Rita Chatterton, as talks of his company’s possible sale do the rounds. The Wall Street Journal reported that the accused eked out a few million dollars to settle the case last month.
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People familiar with the matter said that the amount was less than the $11.75 million initially demanded by Chatterton. The agreement adds to the several million dollars that McMahon has already paid in previous rape charges.
A lawyer representing McMahon said that although the CEO denies raping Chatterton in 1986, he preferred to settle the matter to “avoid the cost of litigation.” However, it can also be to resolve any legal hassles before dedicating his focus to clinching a takeover deal.
Sports media company WWE is said to be considering a possible sale, and is still in the process of looking for buyers. Wells Fargo analyst Steve Cahall thinks that Amazon (NASDAQ:AMZN), Netflix (NASDAQ:NFLX), and Comcast (NASDAQ:CMCSA) can be possible candidates as “WWE provides lots of hours of content and has a dedicated audience.”
Is WWE Stock a Good Buy?
There is a high possibility of WWE making a successful sale, given the number of views and traffic it brings to the table. This can be good news for investors looking to cash in from the acquisition.
WWE stock has a Moderate Buy consensus rating on Wall Street, based on five Buys and three Holds. The average price target of $98.25 indicates an upside potential of 10.58% from the current price level.
Shares climbed around 3% early on Friday and are up more than 29% this year thus far.
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