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WWE Stock Pops As Former CEO Returns

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J.D. DURKIN: Is Vince McMahon's return a good thing for WWE  (WWE) - Get Free Report. Keep it in mind right behind me, Martin as we speak, the stock is up 18.67%, your thoughts. I'm looking at it in real time.

MARTIN BACCARDAX: I mean, that's $20 or $30 billion worth of added market value in 24 hours, J.D., as a result of the founder and former CEO Vince McMahon coming back into the fold. So it does indicate exactly what kind of control and influence he has on this company. And it's worth remembering WWE has a $6.1 billion market value. It's a Titanic company in the media and entertainment business and an important one as well. So I think the fact that he has come back and he is a controlling shareholder is going to elicit the kind of gains that we're seeing this morning. He says that he wants to help with the negotiation of media rights. He is obviously incredibly influential in that regard. So I think investors are seeing this as a positive thing.

But there is the overhang of the allegations that he faced over the summer when he left as CEO. And they were included, amongst other things, paying hush money payments to a former colleague as a result of a consensual affair. Now, it's interesting, J.D., in looking at the story this morning, I did some research and I discovered that WWE itself had said around August that it found $15 million of unauthorized expenses linked to Vince McMahon, which we can only assume at least partially defend the reporting that says he had paid these hush money payments. We haven't connected a to b, but there certainly does seem to be semantic total evidence there. So the investigation continues to hang over his leadership and his return as chairman probably puts him in effective control. Those two conditions might clash in the near term, but at least for the moment, investors like what they see and they’relifting the stock pretty heavily.

For more on WWE and all the stories driving Wall Street Friday, catch a full rewind of our daily market show here. 

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