Vince McMahon's WWE Under Investigation for Possible Violations in Sale to Endeavor

The impending sale of WWE to Endeavor Group Holdings is under investigation.

Felix Upton of Ringside News noted Tuesday that Ademi LLP, a law firm that specializes in shareholder litigation, announced it is looking into whether WWE's board of directors obtained a fair and reasonable price in the sale process.

Upton shared the news release:

"Ademi LLP alleges WWE's financial outlook and prospects are excellent and yet the transaction values WWE's shares at only approximately $106 per share (before any post-closing dividend) with Endeavor holding a 51% controlling interest in the new company and existing WWE shareholders holding a 49% interest in the new company. The transaction agreement unreasonably limits competing bids for WWE by imposing a significant penalty if WWE accepts a superior bid. WWE insiders will receive substantial benefits as part of change of control arrangements.

"We are investigating the conduct of WWE's board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for WWE."

Jordan Valinsky of CNN reported Monday that WWE's merger with Endeavor Group, which is the parent company of the UFC, valued the UFC at $12.1 billion and WWE at $9.3 billion. After the deal, Endeavor shareholders would own 51 percent of the new company with the other 49 percent belonging to WWE shareholders.

Vince McMahon would also remain the executive chairman.

Valinsky noted that WWE shares fell almost 10 percent in early trading after news of the deal broke.

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