Sesame Street vs. SeaWorld: Sesame Workshop files lawsuit to end deal

Could Sesame Street, Elmo, Big Bird, and Cookie Monster leave SeaWorld soon?

Sesame Workshop, the nonprofit organization behind "Sesame Street" and its famous characters, filed a lawsuit in New York against SeaWorld and its parent company, United Parks & Resorts, accusing the company of failing to honor its agreement, failing to pay royalties and fees, and for allegedly tarnishing the Sesame Street brand.

The lawsuit, filed on Thursday in U.S. District Court, Southern District of New York, seeks to terminate the agreement between Sesame Street and SeaWorld, and seeks various damages.

The backstory:

SeaWorld and Sesame Street have had a partnership for nearly 50 years. SeaWorld has several Sesame Street-themed lands in its parks, including SeaWorld Orlando and Busch Gardens Tampa Bay in Florida, and Sesame Place San Diego in California.

Big picture view:

According to the lawsuit, Sesame Workshop alleges that:

• In 2022, SeaWorld failed to pay millions in royalties for Sesame Place Langhorne Park
• In 2024, SeaWorld decided not to open a third Sesame Street-branded park.
• In 2024, SeaWorld shuttered Sesame Street Bay of Play in SeaWorld San Antonio, and announced it would replace it with a different brand.
• In 2024, SeaWorld "abruptly" announced it would close Sesame Place San Diego and transition to a seasonal schedule, but didn't notify Sesame Workshop.
• Continued to use Sesame Street brands in its marketing and social media, while allegedly locking out Sesame Workshop

"SeaWorld has engaged in a series of willful, unilateral retaliatory breaches designed to undermine the parties’ relationship and harm Sesame Workshop," the lawsuit reads.

What they're saying:

"We are aware of the lawsuit filed by Sesame Workshop and look forward to setting the record straight in court," a spokesperson for United Parks & Resorts said in a statement.

According to the lawsuit, SeaWorld Orlando allegedly sent a letter in September 2025 to Sesame Workshop, accusing the organization of not investing in the Sesame Street brand. FOX 35 cannot independently confirm that allegation, and has reached out to United Parks for comment.

"Sesame Workshop has been and remains one of the most iconic, beloved, and well-supported children’s brands in media," reads the lawsuit, seemingly refuting the allegation.

Will there be changes to Sesame Street Land at SeaWorld Orlando?

"SeaWorld Orlando will continue normal park operations, including Sesame Street Land, with no changes to the guest experience," a spokesperson said in a statement.

Sesame Street Land is home to many attractions, including Abby's Flower Tower, Cookie Drop, Elmo's Choo Choo Train, as well as a splash pad.