While the product may be fake, World Wrestling Entertainment's (NYSE: WWE) fourth-quarter loss was all to real. The athletic-entertainment company saw fourth-quarter profit fall 37%, matching analysts expectations with its earnings of 18 cents per share. A year ago, Vince McMahon's company raked in 30 cents per share. For the full year, WWE made 62 cents per share, down from 72 cents per share in 2007.

Quarterly revenue fell 5% to $125.4 million from $132.6 million a year earlier. Revenue took the largest hit from a fall in live and televised entertainment revenue. The Street expected WWE to pull in revenue of $125.9 million. Full-year revenue rose to $526.5 million.

World Wrestling Entertainment (NYSE: WWE) entered a match it apparently was unprepared to win this time around. I'm talking about a match for the most coveted prize on Wall Street: The Earnings Championship Belt.

During the second quarter, WWE had to lie down for the count. The top line saw a depressing decrease of nearly 6%, coming in at $129.7 million. The bottom line saw no growth whatsoever, as WWE earned $0.10 per diluted share, the same amount that was earned in the year-ago period. According to Briefing.com, this represents a miss of two pennies. One thing that must be noted is that the big Wrestlemania event took place during the second quarter last year and the first quarter this year.

Of course, one of the most fascinating elements of WWE's stock is its incredible yield. Right now, the company is trading at a yield greater than 9%. Considering WWE's massive brand power in sports entertainment, and the fact that wrestling should always be with us, that sounds like a great deal, correct? It could be over the long term.

However, a look at the cash-flow statement does not offer a lot of encouragement, to be honest. Operational cash flow declined massively, dropping 94% during the six-month period. And for both the quarterly period and the half-year period, there was negative free cash flow by management's own calculation. So, as can be seen, servicing a dividend with no free cash flow is like Rey Mysterio trying to body slam Andre the Giant.

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.