Breaking News:

The Turnstile

Vince McMahon's losses: $750 million in two months

The Turnstile
Newest Innovations In Consumer Technology On Display At 2014 International CES
.

View gallery

LAS VEGAS, NV - JANUARY 08: WWE Chairman and CEO Vince McMahon speaks at a news conference announcing the WWE Network at the 2014 International CES at the Encore Theater at Wynn Las Vegas on January 8, 2014 in Las Vegas, Nevada. The network will launch on February 24, 2014 as the first-ever 24/7 streaming network, offering both scheduled programs and video on demand. The USD 9.99 per month subscription will include access to all 12 live WWE pay-per-view events each year. CES, the world's largest annual consumer technology trade show, runs through January 10 and is expected to feature 3,200 exhibitors showing off their latest products and services to about 150,000 attendees. (Photo by Ethan Miller/Getty Images)

Vince McMahon's fortunes have been thrown off the top of a steel cage. In a precipitous stock plummet, McMahon has lost a stunning $750 million in the past two months, punctuated by a single-day loss of $350 million earlier this month.

WWE's shares had ascended in the early months of 2014, gaining 89 percent in value. That helped McMahon amass a fortune on paper of $1.6 billion in mid-March. But a variety of negative factors chopped away at that valuation. WWE's new online streaming network has picked up only an estimated 700,000 subscribers, and WWE conceded that it could lose as much as $52 million this year. That announcement cost McMahon another $325 million in March.

One of the key downward forces was the announcement of a new TV deal between the WWE and NBCUniversal. Analysts estimated the $150 million deal was a 50 percent increase from the previous agreement, but had expected the deal to be double or even triple the prior one. The announcement of that agreement forced WWE's share price from a high of about $20 to the $11 range, where it remains to this day.

The irony, of course, is that TV deals were how McMahon built his empire. As Forbes notes, his pay-per-view broadcasts put WWE into American households and made stars out of its wrestlers.

____

Jay Busbee is a writer for Yahoo Sports. Have a tip? Email him at jay.busbee@yahoo.com or follow him on Twitter.

View Comments (1049)