By Jacob Passy
Big Bird and Shamu are at odds.
The nonprofit behind the "Sesame Street" television show has sued SeaWorld's parent company, alleging the aquatic park operator hasn't been paying royalties and shortened operations of a Sesame-themed park with limited notice.
Sesame Workshop filed the lawsuit Thursday in federal court in New York in a bid to terminate a licensing agreement with SeaWorld Entertainment, which changed its name in 2024 to United Parks and Resorts. Sesame Workshop also wants to recover payments owed and punitive damages.
"While we did not want to end a partnership that has spanned 45 years, we have regrettably determined that the termination of our agreement is the only path forward," Sesame Workshop said. The companies' most recent licensing agreement was finalized in 2017.
United Parks didn't immediately comment.
An end to the agreement would allow Sesame to pursue relationships with other theme-park operators. Last year, the nonprofit reached an agreement with Netflix to distribute its content.
SeaWorld and Sesame have worked together for decades to design parks and attractions. The first Sesame Place park opened in the Philadelphia area in 1980. United Parks and Resorts also operates Busch Gardens and Discovery Cove parks.
Conflict between the two companies has simmered for years. After SeaWorld failed to pay royalties in 2022, according to the lawsuit, the two companies went into arbitration. Sesame alleged in its lawsuit that it didn't receive payment until 2025, only after it went to court.
In September, United Parks announced that a Sesame Place location in San Diego, which opened in 2022, would move to a seasonal operating schedule. The park closed for the year just days later.
Families who had purchased annual passes or were planning visits blasted the change on social media. Special Halloween and Christmas events at the park were also canceled.
People with annual passes to Sesame Place San Diego were offered similar cards to a nearby SeaWorld park that provide unlimited admissions and access to holiday events.
Sesame Street characters and attractions are featured in most of United Parks' other properties, including its Busch Gardens and SeaWorld parks. A Sesame Street-themed section of the SeaWorld park in San Antonio was closed in 2024 and now has a different theme. Sesame's lawsuit alleges that SeaWorld hadn't paid fees owed due to the closure.
SeaWorld and its parent company have struggled for more than a decade to return to prominence after fallout from the release of an exposé about the company's handling of its orcas.
United Parks' properties drew around 22 million visitors in 2024, according to an industry report.
Write to Jacob Passy at jacob.passy@wsj.com
(END) Dow Jones Newswires
March 12, 2026 19:30 ET (23:30 GMT)
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