World Wrestling Entertainment, Inc. (WWE) Loses Saudi Media Rights Deal
In recent years, WWE had entered into a multiyear television distribution rights agreement with Saudi-controlled Orbit Showcase Network (“OSN”) and a partnership with the Saudi General Sports Authority to host live events in Saudi Arabia. However ideological differences between the Company and the Saudi government led to the Saudi government’s refusal to pay millions of dollars it owed to WWE and OSN’s early termination of its agreement with WWE. As a result, on February 6, 2020, WWE disclosed its disappointing financial performance due to its inability to secure a favorable broadcasting deal with the Saudi government, revealing that the Saudi media rights deal was no longer part of WWE’s financial forecast. Following all of its disclosures, WWE’s stock traded as low as $32.38 on March 12, 2020, representing a staggering 67% decline from its class period high of more than $100.