In a recent securities filing, Vince McMahon, the founder of WWE (World Wrestling Entertainment), revealed his plan to sell a significant portion of his holdings in TKO Group, the Endeavor-controlled owner of the wrestling empire. The sale will involve 8.4 million shares, with a street value of just over $700 million.

McMahon, who currently serves as the executive chairman of TKO Group, will be reducing his stake in the company by nearly 25%. The filing also states that TKO intends to repurchase $100 million worth of the shares in the sale. The CEO of Endeavor, Ari Emanuel, and TKO's President and COO, Mark Shapiro, are expected to purchase $1 million each, with other directors committing to buy an additional $850,000 in shares.

The formation of TKO Group took place in September when Endeavor spun out its UFC division and merged it with McMahon's WWE, resulting in the creation of a powerful sports media entity. Earlier this week, the company reported its first quarterly earnings, highlighting newfound WWE media rights deals with NBCUniversal and The CW, along with plans for international expansion.

McMahon's retirement from WWE last year was initially linked to a misconduct investigation, which resulted in him paying the company over $17 million for investigation expenses. In January, leveraging his controlling stake, McMahon returned to the company by appointing himself and two others to the company board. The subsequent decision to sell the company ultimately led to the establishment of TKO Group.

It is worth noting that the FBI served a search warrant and grand jury subpoena at McMahon's residence in July. However, as of now, no charges have been filed in relation to this investigation.

The decision by TKO Group to repurchase $100 million worth of McMahon's shares sends a strong message to Wall Street, indicating their belief in the company's potential for profitability. Executives have expressed confidence in returning profits to shareholders, especially as new rights deals continue to be signed.

As McMahon prepares to divest a significant portion of his TKO Group holdings, the market eagerly awaits the outcome of this transaction, which could have a significant impact on the future direction of the wrestling giant and its media empire.