World Wrestling Entertainment (NYSE: WWE) reported Q4 earnings today, and they showed that this little media company isn't ready to submit yet. WWE generated $0.30 per share in net income, which represented growth of 36%. According to earnings.com, the street was figuring on $0.17 per share. Guess the street had better learn not to doubt Vincent Kennedy McMahon.

Nevertheless, all is not necessarily well with WWE. For one thing, the company has found that playing in the movie business is not as easy as it sounds. The WWE Films unit saw revenues of $3.1 million in the quarter but contributed nothing in terms of profit. WWE is recognizing revenues from films See No Evil -- which was distributed by Lions Gate (NYSE: LGF) in the summer of 2006 -- and The Marine, which was released by News Corp.'s (NYSE: NWS) Fox in the fall of 2006. Also, the pay-per-view buy rates could use some help, maybe some marketing muscle to get things back on track.

Still, free cash flow for the year saw a body-slamming jump to $79.6 million versus $26.2 million for 2006. That was enough to cover the dividend obligation -- and WWE actually pays a decent yield. Shares are up as I write this over 7%, and the volume is Hulkin' up as well. So, investors are clearly pleased. But, Mr. McMahon really better take a good, hard look at his film business and get some exciting projects into production -- I believe there is great potential for this segment over the long haul. Sure, the company isn't a Disney (NYSE: DIS) or Time Warner (NYSE: TWX), but it still is a fun way to play the media sector.

Disclosure: I own shares in Disney.

World Wrestling Entertainment Inc. (NYSE: WWE) shares have plunged more than 5% over the past month as investors fled Vince McMahon's muscle-bound empire in the wake of the Chris Benoit tragedy. The stock is headed for an even bigger fall in the coming months as the company grapples with congressional scrutiny, potential lawsuits and long-overdue increased government regulation.

Nonetheless, WWE is something that truly adventurous investors should consider. The shares are trading at a multiple of 25, which is dirt cheap compared with its peers such as Playboy Enterprises Inc. (NYSE:PLA)'s 130 and Lions Gate Entertainment Corp. (NYSE: LGF)'s 53. Though profit and sales are expected to fall this year, analysts expect WWE to rebound next year.

When WWE holds its earnings conference call on August 2, there no doubt will be plenty of questions about Benoit, steroids, declining ratings and potential share buybacks. WWE management should also be scolded for its stupid decision to air a tribute to Benoit.

But some long term perspective also is in order. Big media companies including Viacom Inc. (NYSE: VIA) and News Corp (NYSE: NWS) would love to buy WWE to gain access to its huge library of content and rabid fan base.

Like it or not wrestling has been part of the pop culture landscape for a long time. Eventually, some other personality will come along that will make people forget the Benoit murders.

At that point, investors who hung in there will have their patience rewarded.

Two weeks ago, Vince McMahon, World Wrestling Entertainment's (NYSE: WWE) CEO, faked his own death. This week, Chris Benoit killed his wife and mentally retarded 7-year-old son. I think it may be time for a change at the top of WWE.

In response to an earlier post, I discussed this yesterday with CNBC. A risk noted in WWE's financial statements is that if CEO Vince McMahon left, it could hurt the company. And since McMahon faked his death, the stock has lost 11% of its value. I realize that these kinds of stunts are part of the entertainment. But as an investor, I would be concerned that WWE lacks the depth of management to replace McMahon.

Meanwhile, speculation continues as to what drove Benoit. Here are three possibilities:

• His wife has filed for divorce from him in 2003 citing "cruel treatment" and tensions continued
• He was stressed by his wife's demands to spend more time at home taking care of their son
• Steroids were found at the scene which are known to cause paranoia and rage.
  

It's too early to tell what happened with Benoit. But in the absence of a deeper management bench, the best thing preserving WWE's future is the possibility that a bigger media outlet might acquire it.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in WWE.

Awww, dawg, it's straight-up whack! Wall Street has just totally "dissed" the company. Wait, is this the stocks blog? Sorry. I just got carried away with Jim Cramer's latest rant. He's discussing World Wrestling Entertainment, Inc. (NYSE: WWE), a stock was down for a while. Yet its yield is over 5%.

Cramer interviewed chairman and "third-generation promoter" Vince McMahon on video conference. Cramer asked about WWE's international prospects, and McMahon said that his company's entertainment may be the biggest US export. McMahon said national attendance was actually down at events but the international audience more than makes up for it. Cramer asked McMahon about two movies, McMahon said they have some downside protection and they keep their own intellectual products. He said Spain, Italy, Portugal, Philippines are all growing after recent launches. Cramer said that the future seems brighter than the past and Cramer thinks the dead-money past performance is about to change. He said you should even do a "Mo'm-Back" and buy it before this changes.

Oddly enough, Cramer didn't ask any guidance questions or real financial questions. Maybe that, too, would be whack. WWE traded up 3.2% today, so we'll have to see how it performs on Friday.