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How Hulk Hogan Lost the WWE $50 Million


You can't put a price tag on racism, but looks like the stock market is doing it's best to make sure it doesn't come for free.

Forbes reports that in the wake of Hulk Hogan's n-bomb-fuelled racist rant that's been scorching the wrestling world lately, WWE stock plummeted 4%, erasing approximately $50 million in shareholder value.

Let's be clear, guys. This doesn't mean $50 million magically disappeared from the McMahon family vaults. It's simply a theoretical number that estimates the confidence and value that investors are willing to place in the WWE name.

Lots of factors could affect this, but it's most likely that a sizable number of stockholders believed that the impact of this scandal could be so huge, it could linger with the WWE, generate sustained bad PR, and make advertisers or the buying public reluctant to support the organization. And so the more prudent action would be to dump their stocks, which created a glut of available supply in a market of weakened demand, which is what created this little 4% depression.

The timing is unfortunate, considering how Wells Fargo had predicted on July 8 that the WWE was in a great position to outperform expectations, which led to a surge of 14% in share prices over the past couple of weeks that ultimately increased shareholder value by roughly $160 million.

Either way, that's a lot of money that just went BAMF! and we're pretty sure things won't turn around overnight.

Just for comparison, the WWE Shop generates about $16-20 million in revenue a year. So the Hulkster's little rant just cost them the equivalent of roughly three WWE Shops.

(Or fifty Virgils, if you prefer.)

We'll stay on top of the financial details of the WWE over the next few days, fellow smarks, and keep you posted with details as they come.

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