WWE Inks Deal for Saudi Events, Boosting Hope for Wider Accord
(Bloomberg) -- World Wrestling Entertainment Inc. rose as much as 7% in extended trading after the company expanded its live event partnership in Saudi Arabia to include a second large-scale event.
The partnership with the Saudi General Entertainment Authority runs through 2027, the parties said Monday. WWE and GEA also continue to work toward a media agreement in the Middle East-North Africa region.
Investors had grown increasingly concerned about the WWE’s progress into the Middle East. A delay in completing a deal in the area contributed to a 16% drop in the stock on Oct. 31. The company also slashed its forecast for operating income, in part because of the delay.
The shares fell an additional 5% earlier on Monday. Several wrestling blogs reported that WWE hadn’t been paid for an event this year in Saudi Arabia, which led to a dispute at the company’s Crown Jewel event in the region last week.
WWE said late Monday there was no such dispute.
Shares of WWE soared as high as $56.86 in late trading after Monday’s announcement. They were down 29% this year as of the close.
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