Syfy Channel has pinned a deal for "Smackdown."

World Wrestling Entertainment Inc's  "Smackdown," which for years was a mainstay on the UPN and CW networks before moving to News Corp.'s My Network TV, is now headed to NBC Universal's Syfy Channel, people close to the situation said.

A deal, which will be announced later this week, further solidifies the growing relationship between NBC Universal and Vince McMahon's WWE. Syfy already carries the show "NXT," which is a reality program featuring wannabe wrestlers trying to make it to the big leagues of WWE. NBC Universal's USA cable channel also carries WWE programming including "WWE Raw." 

Although terms were not disclosed, My Network TV was shelling out roughly $20 million a year for "Smackdown." Syfy's price tag is believed to be closer to $30 million a year.

Although "Smackdown" is more than 10 years old, it still does very well with men, particularly the 18-34 demographic, and generally averages about 3.5 million viewers overall. "Smackdown" will continue to air on Friday nights when it moves to Syfy later this year, most likely in either late September or early October.

WWE is still looking to launch its own cable network, probably sometime in 2011. This latest deal with NBC Universal is another sign that the two could end up partnering on such a channel. WWE chief Vince McMahon has close relationships with NBC Universal brass, particularly Dick Ebersol, who oversees all sports programming for the company. Just a few weeks ago, Ebersol took part in an induction ceremony for broadcaster Bob Uecker into the WWE's hall of fame, which was also broadcast as a special on the USA Network. 

-- Joe Flint

Photo: Great Khali, right, knocks down the Undertaker on "WWE Friday Night SmackDown" in 2006. Credit: Mike Groll / Associated Press.

THQ, the publisher of UFC Undisputed and WWE video games, this afternoon reported it had eked a $542,000 profit, a penny a share, on sales of $357 million for its third quarter ended Dec. 31.

Just a year ago, the Agoura Hills game company looked like it might have been down for the count. It lost $192 million, also on $357 million in sales. THQ marshaled its resources, or perhaps pared them down, and launched a turnaround plan. The idea: cut costs, focus on just a couple of hard-core games and build on its strength in wrestling games and games for smaller kids.

So how's it going?

So far, so good. The company slimmed to 1,800 employees, down from 2,400 just 14 months ago. Once the No. 3 publisher, THQ is now No. 4 after Activision, Electronic Arts and Ubisoft Entertainment. But it seems to be finding a better groove in the lighter weight category, where it can pick its battles more selectively. Those cuts paid dividends; THQ turned a profit last quarter on the same revenue it took in a year ago, when it posted a massive loss.

"They've turned it around," said Michael Pachter, an analyst with Wedbush Morgan Securities. "The question is whether they can grow revenue."

Brian Farrell, THQ's longtime boss, insists the answer is yes.

"We've gained market share, and we're ramping up our digital games initiatives," Farrell told Wall Street analysts during a conference call, saying the company is "positioned for growth."

Key to THQ's plan is to test out new games online first where development costs are lower, via Facebook or downloads on Xbox Live or PlayStation Network. If the titles get traction, the game gets moved up the food chain as a bigger-budget disc-based console franchise.

It's a smart strategy, Pachter said. Though the digital download and online games business is still small, it's growing fast. Any upside, however minor, could move the needle for THQ, where "every little bit means a lot," Pachter said.

-- Alex Pham

USA Network's move to renew its deal for "Monday Night Raw" with World Wrestling Entertainment for another four years may be just the beginning of a broader partnership between the NBC Universal-owned cable network and Vince McMahon's WWE.

WWE, as was first reported here, is looking to start its own cable network within in the next 18 months, and NBC Universal might be a potential partner. NBC Universal has long ties to WWE that go beyond USA Network. The two companies were partners on the short-lived XFL football league, and NBC Universal sports chief Dick Ebersol and WWE Chairman McMahon have a long relationship.

One of the challenges facing McMahon and WWE is getting distribution for a new channel. NBC Universal has a channel that may fit the bill in its Universal HD network, a cable channel that carries high definition programming. Currently the channel, which is overseen by NBC Universal cable entertainment chief Bonnie Hammer, is a hodgepodge of reruns including "Hogan's Heroes" (yes, they've upgraded it to HDTV-like quality) and "Monk." It also has some sports, movies and even carries a high-definition version of "Raw."

There have been very preliminary chats between the two companies about working together on the WWE network. While Universal HD is a digital channel and only in 55 million homes, WWE programming is a big draw and it would likely help boost distribution for the network.

Obviously there are bigger fish to fry at NBC Universal right now, with cable giant Comcast inching closer to taking control of the entertainment company. For WWE, having Comcast take over NBC would be a plus because Comcast has cable systems reaching almost 25% of the country.

-- Joe Flint

Photo: WWE Chairman Vince McMahon. Credit: Eric Johnson / WWE.

Vince McMahon doesn't want anyone thinking his wrestling superstars are a bunch of wine-tasting wimps. 

McMahon's World Wrestling Entertainment Inc. has told the American Wine Foundation, parent of the Wine School of Philadelphia with the U.S. Patent and Trademark Office, that it is infringing on its copyright by calling one of its wine classes "Sommelier Smackdown." As any WWE fan knows, "Smackdown" is the name of one of its most popular franchises.

In a letter to the Wine School of Philadelphia, the WWE told the wine sippers that its use of the word "smackdown" is "likely to create consumer confusion as to WWE's affiliation, sponsorship and/or approval" of the class. Yes, because we all know how similar the demo is of wine snobs and wrestling fanatics.

American Wine Foundation President Keith Wallace knows he's outgunned, but he's still going to try to a few rounds with the WWE (sorry for the mixed metaphor).

"We can't go toe to toe with this national multi-corporation," Wallace says, mixing his metaphors as well. Wallace does think he has a case. "Smackdown is not a term they can protect. ... `Sommelier Smackdown' is clearly a parody. It's just a big company trying to bully a small firm." Wallace notes that WWE has hundreds of employees, "and I have five."

A WWE spokesman says it went after American Wine Foundation only after the foundation tried to file a trademark application for "Sommelier Smackdown."

"It's not us going after piddly little Joe Blow here," the spokesman said. "We do own the trademark, and we created the term `Smackdown.' "

Let's save everyone including the poor bureaucrats at the patent office time and money here. How about the wine snobs send McMahon, Chris Jericho and everyone else at WWE a few cases of the grape and in return WWE will let the wine folks keep their bones intact.

-- Joe Flint

Updated: Economist Peter Schiff is also weighing a run as a Republican for Dodd's seat.

Maybe The Rock and Triple H will serve as campaign managers.

Linda McMahon, the chief executive officer of World Wrestling Entertainment Inc., announced today she is resigning to run for Senate in her home state of Connecticut. McMahon, a Republican, will look to unseat Democrat Christopher Dodd in the 2010 election.

Although not nearly as flamboyant as her husband -- WWE Chairman and ringmaster Vince McMahon -- Linda McMahon is considered the brains behind the brawn. She has been CEO of WWE since 1997 and is respected on Wall Street. She and her husband have been focusing on making over WWE from a raunch-fest to more family-friendly entertainment, albeit a family that likes to throw each other around a ring and talk in double entendres (for more on how the WWE has been repositioning itself, read our Aug. 24 story). Whether the move toward kinder, gentler wrestling was in part motivated by her political aspirations remains to be seen, but it probably won't hurt.

With deep pockets and a fairly established presence in the state, McMahon could be a force in the race. According to the The Hill, a Washington political publication, McMahon's potential opponents for the Republican nomination are former U.S. Rep. Rob Simmons, economist Peter Schiff and former Ambassador to Ireland Tom Foley. Interestingly, former Connecticut governor and Sen. Lowell Weicker is on the WWE's board of directors.

Inside the WWE, McMahon's exit comes as the company is in the midst of an expansion. Vince McMahon, who will assume his wife's CEO position, indicated last month that he wants to launch a cable network and is also pushing harder to make more movies with his stable of wrestling talent.

-- Joe Flint

Photo: Linda McMahon. Credit: Linda McMahon for Senate.

Vince McMahon's World Wrestling Entertainment Inc., wants to start its own cable network.

In an interview with Company Town, McMahon said he wants to launch the channel within the next two years and that he will pitch it as a network for the basic tier, which is the hardest one to get carriage on.

Launching a cable network is just the latest push in McMahon's effort to remake the WWE. For years, WWE programming was a tough sell to advertisers and families because of its raunchy nature and sexual innuendo. Now he's pushing a softer, gentler WWE. For more on his strategy, please read our story in today's Los Angeles Times.

Although this may not seem like the most ideal time to try to get a  network off the ground, McMahon's WWE has a pretty strong track record that cable and satellite operators will find hard to ignore. Whatever one thinks of WWE content, it does attract a big audience. USA Network's "Raw," for example, averages 5.5 million viewers and all of the WWE's shows on broadcast and cable combined average 16 million viewers per week. WWE is also starting bringing in more blue chip advertisers, including AT&T, Pepisco and Procter & Gamble. 

McMahon is also a force on pay-per-view. WWE does about 14 pay-per-view events annually that attract anywhere from 500,000 to 1.4 million buys. In other words, he has some juice with distributors. With a library of over 100,000 hours of programming, he's not lacking for content.

"We have a lot of clout that most people don't," McMahon said. While WWE wants its own network, McMahon said he has no plans to take "Raw" off of USA or move any of his other properties.

"It won't be a threat, it'll be an integration," he said, adding, "it's good for `RAW' to be on USA." Of course, McMahon also knows it will also help him in negotiations with his partners. "Having your own network allows you a lot of leverage."

-- Joe Flint

Photo: WWE Chairman Vince McMahon. Credit: WWE