WWE's McMahon subpoenaed by US law enforcement agents (updated)

Endeavor group

02/08/2023 14:21

(Adds background on McMahon in paragraphs 3-5, details on
results in paragraph 7 and 9, shares in paragraph 8)
       Aug 2 (Reuters) - World Wrestling Entertainment  WWE.N 
said on Wednesday U.S. federal law enforcement agents executed a
search warrant and served a subpoena to Executive Chairman Vince
McMahon last month, though no charges were brought against him.
    WWE, which reported its second-quarter results on Wednesday,
said McMahon has been on a medical leave since July 11 after a
major spinal surgery.
    Former CEO and Chairman McMahon returned to the company's
board in January to help forge a deal with Endeavor Group-owned
 EDR.N  mixed martial arts franchise UFC to form a new, publicly
listed entertainment giant valued at about $21 billion.
    He had retired in July last year amid allegations of
misconduct and paid $17.4 million to the company to cover costs
related to an investigation into the case. 
    He was investigated by WWE's board for agreements to pay $12
million over the past 16 years to suppress allegations of sexual
misconduct and infidelity, the Wall Street Journal reported in
June last year.
    McMahon is credited with transforming WWE from a regional
player in a highly fragmented industry of the 1980s to a global
giant.
    WWE's second quarter revenue rose 25% to $410.3 million from
a year earlier, above estimates of $398.9 million, according to
Refinitiv data. Its profit of 91 cents per share was also
in-line with estimates. 
    Shares of the company were up nearly 2% in premarket
trading, after having risen roughly 52% this year.
    Revenue from WWE's Live Events segment jumped 51%, thanks to
strong demand for its domestic and international events such as
WrestleMania, Backlash and Night of Champions.
    

 (Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Savio D'Souza and Shinjini Ganguli)
 ((Samrhitha.A@thomsonreuters.com))