Sesame Street Nonprofit Sues SeaWorld Parent Company Over Unpaid Royalties

According to the Wall Street Journal, the nonprofit that's behind the hit kids' television show "Sesame Street" is suing SeaWorld's parent company, United Parks & Resorts. 

The reason? Sesame Street alleges that the company hasn't been paying them royalties and shortened the operations of a Sesame Street-themed park with "limited notice." 

More About the Suit 

The lawsuit was filed Thursday in federal court in New York by Sesame Workshop, attempting to terminate its licensing agreement with SeaWorld Entertainment. In 2024, SeaWorld Entertainment changed its name to United Parks & Resorts. 

In addition to terminating the licensing agreement, Sesame Workshop is seeking to recover unpaid amounts 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.

“We are aware of the lawsuit filed by Sesame Workshop and look forward to setting the record straight in court,” a United Parks representative said in a statement.

Should Sesame Street end this pact, it'll be able to form relationships with other parks. 

Speaking of relationships, Sesame Street struck a deal with Netflix last year to distribute its content. 

Background on the Relationship to This Point

As mentioned in their statement, Sesame and SeaWorld have worked together for nearly half a century. The first Sesame Place opened near Philadelphia, Pennsylvania, in 1980. 

Now, the relationship has been in conflict for a few years after SeaWorld didn't pay royalties in 2022, per the lawsuit. After that, they went into arbitration, and Sesame alleges they didn't get paid until 2025, and after that, it went to court. 

Also, in September 2025, United Parks announced that Sesame Place in San Diego, California, would move to a seasonal schedule. The park initially opened in 2022, and days after the announcement of the new schedule, it closed for the year. 

With the change, families who had purchased annual passes or who had upcoming visits took to social media to voice their displeasure. The closure also included the cancellation of Halloween and Christmas events. 

Another Sesame Street-themed section of SeaWorld in San Antonio closed in 2024, and Seame alleges it hasn't been paid the fees due to the closure. 

The Journal mentioned that all United Parks properties drew a combined 22 million visitors in 2024.