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Tue 5 Nov 2019 08:16 AM

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WWE signs expanded deal for Saudi events

The World Wrestling Entertainment partnership with the Saudi General Entertainment Authority runs through 2027

WWE signs expanded deal for Saudi events

WWE and GEA also continue to work toward a media agreement in the Middle East-North Africa region.

World Wrestling Entertainment 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.