Vince McMahon originally resigned as CEO following an investigation revealing he paid nearly $15 million to four women over 16 years to silence allegations of sexual misconduct.
On Friday, World Wrestling Entertainment announced that Vince McMahon, the former CEO and majority shareholder, will return to the company’s board. Following this news, WWE’s stock surged by 20%.
“Today, we announce that the founder of WWE, Vince McMahon, will be returning to the Board,” WWE executives stated in a press release.
This confirmation came after McMahon’s own declaration on Thursday about reinstating himself as executive chairman and initiating efforts to sell the company. He also mentioned reappointing former co-presidents Michelle Wilson and George Barrios as board directors.
Three current board members—JoEllen Lyons Dillon, Jeffrey Speed, and Alan M. Wexler—were dismissed. Additionally, directors Ignace Lahoud and Man Jit Singh resigned, effective Friday.
Despite stepping down, McMahon retained control over WWE as the majority shareholder. A November regulatory filing stated, “Mr. McMahon can effectively exercise control over our affairs.”
McMahon felt his return was necessary due to upcoming media rights negotiations and strategic initiatives, according to The Wall Street Journal. WWE has recently been considered a potential acquisition target.
Analysts at MKM Partners, who have a buy rating on WWE stock, noted that exploring a sale of WWE “makes a lot of sense.”
WWE confirmed on Friday that it would explore “strategic alternatives,” but added, “There is no assurance that this process will result in a transaction.”
Over the past year, WWE shares have risen by 75%, with the company’s stock now holding a market capitalization of over $6 billion.