Lawsuit Claims WWE-TKO Merger Involved "Sham Sales Process"

Investors have filed a lawsuit alleging that WWE board members favored a merger with Endeavor's UFC to allow Vince McMahon to stay on as executive chairman of TKO Group, ignoring more lucrative offers. The lawsuit claims that the board concocted a "sham sales process" to exclude other bidders seeking to remove McMahon, disregarding at least two all-cash offers with better terms. McMahon's return to WWE in January was followed by a review of strategic options, and investors claim he immediately turned to his former agent, Ari Emanuel, for a merger deal that would allow him to remain in control. The lawsuit seeks to represent all stockholders who cashed out their shares in the merger.