WWE's Moving On

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Vincent Kennedy McMahon was not allowed to mention the USA Network on the recent final broadcast of RAW on Viacom's (NYSE: VIA) Spike TV. It doesn't really matter, though. Come Monday, wrestling fans doubtlessly know they can catch McMahon's World Wrestling Entertainment (NYSE: WWE) shows on the USA Network.

Since USA is part of General Electric's (NYSE: GE) NBC Universal business, is it any surprise that the Universal Studios CityWalk locations in California and Florida will be hosting viewer parties? Or that CNBC's The Big Idea with Donny Deutsch featured Hulk Hogan, Vince and Linda McMahon, and Stone Cold Steve Austin this week? Of course not. In addition, advertising trailers will be featured on more than 5,000 movie screens, clever commercials will be programmed on various NBC Universal broadcast networks, and a sweepstakes will be offered.

Back in April, I wrote about WWE's impending switch to the new cable channel. The tone of that piece was a bit cautious. Was merely changing networks going to change WWE's fortunes? I'm sticking with the essential core of that thesis: The biggest driver for the company's television products will be creative and engaging storylines, not a switch to a new media berth.

Yet I have to admit that my gut feels a sense of excitement about this coming Monday's special three-hour premiere. The company's last earnings report indicated that the nation's cyclical interest in wrestling might be swinging back toward McMahon's favor. I have to wonder whether the spectacle surrounding the return to the USA Network might fuel higher viewer levels, pay-per-view buys, merchandise sales, and live attendance.

WWE has a fervent audience from which it can mine a lot of cash. In fact, the company's free cash flow doubled last quarter. If WWE takes full advantage of its return to the USA Network and exploits all the hoopla to the proverbial hilt, then shareholders may have a nice stock storyline to look forward to.

Hey, Roddy! Get into the Fool's Pit:

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If you want to cut a promo of your thoughts, enter the World Wrestling Entertainment discussion board.

Fool contributor Steven Mallas owns shares of General Electric. The Fool has a disclosure policy.