While most of the speculation that Rey Mysterio might be joining the WWE has been quieted in recent weeks, there is news coming out as to why the decision by the WWE was made not to pursue the former WWE Champion. After all, he seemed to check a lot of boxes for the company when it came to their international marketability.
Mysterio had been in talks with GFW and WWE but, according to Sports Illustrated, WWE decided they will not sign him to a deal. The reason is less about Mysterio and more about his representation. Vince McMahon was not thrilled about working with Mysterio’s reps, specifically Konnan.
Konnan and WWE go way back in their history, and not in a good way. The two sides haven’t been on the best of terms since he left the company before his TV debut as Max Moon. So too, Konnan has an issue keeping his comments about all things wrestling (especially the WWE) to himself. Mysterio's close relationship with Konnan was seen as a negative, and this coupled with the WWE's rumored budget cuts, made the decision less difficult.
It's not that Konnan has been banned by the WWE—he was recently welcomed backstage at a WWE event by Chris Jericho, but he did not take that opportunity to mend any of the issues that exist between himself and the WWE office. The WWE believes that if Konnan can't be trusted, the relationship with Mysterio likely wouldn't work, and Mysterio, while an attraction, is not a large enough attraction to put up with a headache.
For Mysterio, Konnan's unintentional interference to employment is not the end of the world. Mysterio is likely to receive a lucrative offer from Global Force Wrestling, and would instantly become the company’s biggest star, potentially replacing Alberto El Patron. Patron's future in GFW is questionable given his recent public relations trouble.
If there is a sticking point between Mysterio and GFW, it's GFW's new regulations regarding third-party bookings. Mysterio will want the ability to appear on independent cards, and if GFW doesn't allow such a move or wants a cut of Mysterio's revenue from third-party bookings, Mysterio may not appear for the WWE or GFW.
This is all speculation of course. At the end of the day, Mysterio could choose to cut loose Konnan as a rep to ensure employment in the WWE for one last run. It just doesn't seem likely at this point.