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WWE Tumbles As Investors Doubt Online Streaming Viability

Shares of World Wrestling Entertainment tumble by more than 40% on Friday, making it TheStreet's Move of the Day. Joe Deaux says the company hit the mat after announcing late Thursday that its new $9.99-a-month online streaming video network will need 1.3 to 1.4 million subscribers in order to replace profits it will lose by eliminating pay-per-view. Chief financial officer George Barrios said in a press release: "Successful execution of our WWE Network strategy could significantly raise the Company's earnings profile and better reflect WWE's tremendous global appeal and brand strength." Investors were clearly concerned with the viability of the online network.