World Wrestling Entertainment could potentially be put in a chokehold by hedge fund Eminence Capital, which disclosed in a filing Monday that it had taken a 9.6% stake in the company.
Eminence's stake comes as WWE's stock price has fallen from around $30 per share to near the $10 mark over the last five months. The New York-based hedge fund, known most recently for its successful activist campaign to merge Men's Wearhouse and Jos. A. Bank earlier this year, which brought in a nice profit for Eminence, has not announced an activist play as of yet, and a representative for the fund would not comment on the filing.
Still, the WWE has missed earnings in recent months and has struggled to meet subscriber goals for its online streaming network. About 700,000 people subscribe to the network, which streams WWE content 24 hours a day, which is well short of management and analysts's targets.
Shares of WWE were down in after hours trading Monday, hovering around $13.50 per share.
Mariah Summers is a business reporter for BuzzFeed News and is based in New York. Summers reports on hospitality, travel and real estate.
Contact Mariah Summers at firstname.lastname@example.org.
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