Updated from 5:43 p.m. to add financial in the eighth paragraph.
NEW YORK (TheStreet) -- World Wrestling Entertainment (WWE) shares fell after the company clinched an agreement with NBCUniversal to bring its popular wrestling shows, Raw and Smackdown, back to the NBC family.
Raw goes back to the USA Network, while Smackdown will run on Syfy. In a press conference at NBC's Upfront presentation, WWE executive Paul "Triple H" Levesque made the announcement, noting that both raw and Smackdown will be returning in a multi-year strategic partnership. Financial terms of the deal were not disclosed.
Shares of WWE were falling in after-hours trading, losing 8.5% to $18.25.
Following the announcement, WWE said that it expects to potentially double or triple its 2012 OIBDA (operating income before depreciation and amortization) to a range of $125 million to $190 million by 2015.2
"We continue to achieve significant increases in the value of our largest television agreements, a key component of our business plan" stated Vince McMahon, Chairman and Chief Executive Officer. "The rising value of our content coupled with the global expansion of WWE Network will provide the foundation for long-term growth that continues to transform our business over the coming years."
"With the favorable renegotiation of our largest television agreements, WWE transitions to a subscription-based business model for future growth," added George Barrios, Chief Strategy & Financial Officer. "Successful execution of our WWE Network strategy could significantly raise the Company's earnings profile and better reflect WWE's tremendous global appeal and brand strength. With such execution, the Company anticipates sufficient financial resources, including debt capacity, to fund growth, support ongoing business requirements and maintain its current dividend."