Corporate- A Smart Purchase- The WWE

Preamble-
The Smart Purchase posts will likely be the most fun to read and write because they will ultimately be the most controversial. We all know that Disney has their hands in many different industries, and will continue to do so, but what industries will help them to grow as a single company and help the brand the most? Simply buying other companies with good sales figures will not help grow your company because it inevitably fails in the long run. The acquiring company must NEED some facet of the smaller company to further their interests or strategy that are ALREADY IN PLACE. Example, Nike should not buy Jiffy Lube even if Jiffy Lube is expected to bring in significant short term products. However, Starbucks might want to purchase Redbull because they are similar in that they both provide caffeinated beverages, but they differ in almost every other facet. The demographic between the two companies is different and such a venture could help Starbucks achieve its goals and expand its customer base.

For Disney, the mission is to entertain audiences by providing positive family content and quality products. Disney creates and innovates brands, building them up and making them profitable, before adapting those brands into different mediums. Example, Disney and Pixar created Toy Story. It was a movie, it became successful. Then came movie sequels, then came merchandise, then came commercials, then came park attractions, etc. This "franchising" is how Disney maximizes the value out of their products and properties. However, what if a product is not successful at targeting a certain demographic or not achieving its goals? Disney is one of the best companies at knowing where they are weak. They know they have trouble reaching boys, so they buy Marvel, etc. These posts present companies/businesses/properties/products representing the best opportunities for potential growth to expand their strategic mission, target a specific demographic, or re-invigorate a current franchise.

In this post I propose that Disney should

  - Buy The WWE. 
I know what you're thinking- professional wrestling has nothing to do with Disney, the brands are completely different, the demographic is all wrong, they specialize in adult content are not family oriented fare like Disney, etc. However, lets look at some reasons that it is a smart purchase.

First the facts:
FACT 1- WWE brought in $142 Million last year with assets of $400 Million, therefore Disney COULD purchase them easily. Now lets look at if Disney SHOULD purchase them. Yes, Disney is family friendly fare and yes, WWE is adult oriented themed fare, but they have more in common than most think.
FACT 2- Disney is in the entertainment business and that includes adults. Disney owns Touchstone, Disney owns Hollywood Pictures, Disney used to own Miramax, etc. What does this mean? It means movies such as Pulp Fiction, Clerks, Trainspotting, Tombstone, Nixon, Annapolis, and Arachnophobia are or were all Disney films...so get the idea that "Disney doesn't do adult content or violence, etc." out of your head. Disney is a large enough company to separate the more adult content under a different sub-business like Touchstone. Additionally, WWE is the same concept (and much of the same demographic) as Marvel.
FACT 3- WWE brings larger than life characters to life, each embodying some ability or character, as they kick butt. That is the same concept as the X-men or Hulk except that they have mutant powers and are in comic book form. The Hulk Hogan character of the 80's was the same as Captain America in the 80's; Hogan fought the Iron Sheik while Captain America fought the Red Skull, etc. In more recent times, the WWE has taken on the mantra of "Attitude", meaning edgier characters and tougher language. The campiness associated with professional wrestling is long gone under this new idea; in today's environment, characters like The Rock, Stone Cold Steve Austin, and Kane bring catchphrases, charisma, merchandising, and flash to the audiences.

FACT 4-  WWE's bread and butter are live-action events, character development, and merchandising. Disney's live-action events (outside of the parks) are weak. The Disney-on-ice events (though not directly owned by Disney) are laughable and their ability to develop live-action characters is minimal. Therefore, WWE's main strengths are some of Disney's biggest weaknesses.
FACT 5- The creation of Disney XD and the acquisition of Marvel shows a concerted effort to reach boys, but Disney has yet to make an attempt to reach adult males. WWE has a history of reaching this demographic.

FACT 6- WWE is essentially a superstar factory. They take talented individuals and make them superstars...sounds just like Disney. Instead of branding musicians and actors, by acquiring WWE, Disney could brand adults and own those characters.

I could go on, but you get the point. They are similar business CONCEPTS and should be run as such. The WWE had a strong resurgence in the late 90's, but due to a lack of competition (WWE bought its two previous competitors WCW and ECW and currently only competes against the smaller Impact wrestling) the company has gotten stale and the revenues have fallen. IN BUSINESS, YOU CANNOT COMPETE AGAINST YOURSELF AND EXPECT TO REMAIN INNOVATE AND EXCITING. They essentially run a monopoly and felt the negative effects. Disney's creative atmosphere can regain the sense of innovation in this company. Now, how would the company run? Like Marvel, Disney should let WWE run as it does, but it should have a seat at the table. Vince McMahon, Owner of WWE, is a smart man and knows his company inside and out. Vince needs Disney so that he can experiment with new concepts without betting the barn. Disney needs Vince because he reaches the male demographic better than anyone. Also, Impact wrestling has an agreement and takes place at Universal Studios...so lets not pretend that theme parks and professional wrestling don't have any connection.

Owning WWE and having them under their own umbrella is a smart move. Should they ever interact with Mickey Mouse or any child friendly Disney brand? No. WWE should be run on its own merit and as a separate entity.