WWE stocks took a massive beating on Wall Street in after hours trading yesterday after the company announced its press release that it has reached a new deal with NBC Universal to keep all WWE shows on USA Network, SyFy, and E!
After closing the regular trading day at $19.93, WWE fell to almost 24%, ending at $15.20, one of their single-day biggest drops this year so far. WWE dropped 25% when it released its first count of subscribers for the WWE Network in April.
The main reason for the drop was a press release WWE issued saying that new TV deals in the United States, United Kingdom, Thailand, and the upcoming deal in India will only increase the average annual value to approximately $200 million, just $90 million north of what previous deals brought in.
Besides that, the company is now saying that it will need up to $1.4 million subscribers on the WWE Network to make up for lost pay-per-view revenue whereas before the company was saying that they would only need 1 million subscribers to break even.
The last WWE Network subscriber count stood at just over 667,000 when the number was released on April 7.