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Originally Posted by The CyNick
I'm curious. Where are you getting your break even numbers for the network? Take a look at their financial statements, it clearly shows the networks contribution to the bottom line. And it's positive. Stop reading BS reporting from people who don't know the business.
The $200M wasn't anything out of desperation, it was part of long term planning to grow various areas of the business. You have to spend money to make money. If the street would have seen that loan as a desperate move, the stock would be tanking. Instead it's nearing its nearing its all time high.
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#1 - WWE and other financial related sources stated that was their break even number around the lead up to the Network's launch. Its a number that needs to be maintained for a long while because the WWE spent way too much money for the Network's launch. Also a big chunk of their monthly earnings goes to MLB and maybe others.
#2 - Kind of funny you use the WWE's exact words for the loan. Their stocks did tank a bit because ta da, the "streets" who are way smarter than you exactly saw it as a desperation move because of the very large amount asked, the very small window WWE was asking for the money, and some shenanigans related to the terms of it.
They were already spending a ton of money to begin with because of the Network and stood a risk of running out of usable funds for the quarter/period or having to cut back on a lot of spending. The biggest downside to the loan wasn't to the WWE but instead to investors who saw their stock value drop because it was likely cheaper for the WWE to just issue stocks than pay it back the normal way.
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Originally Posted by Barrons.com
The reason has nothing to do with earnings, but rather the company’s decision to raise as much as $200 million through a vehicle known as a “convertible note.” The notes act like a bond, in that the holders will receive semi-annual interest payments until the loan gets paid back in 2023. But unlike a traditional bond, these notes can be converted into WWE stock under certain conditions.
And that’s the part that investors don’t like. If the bond holders convert $200 million worth of loans into stock, existing shareholders suddenly own a smaller piece of the company, because they have to make room for the new stock. That so-called dilution is why WWE shares are down Tuesday.
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Quote:
Originally Posted by The CyNick
How many shows on cable did a better number?
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WWE's biggest non-sports juggernaut Love & Hip Hop 7 was one.