Media company and talent agency Endeavor is looking to extract itself from a major deal with Saudi Arabia's sovereign wealth fund as world leaders demand answers about the fate of U.S.-based dissident Saudi journalist Jamal Khashoggi.
This year, the investment vehicle backed by the Saudi government negotiated an investment of at least $400 million for a less than 10 percent stake in Beverly Hills-based Endeavor, as the desert kingdom opened its doors to the entertainment industry.
Now, Endeavor, run by agent Ari Emanuel, is trying to get out of the transaction but has not finalized the legally complicated move, according to a person familiar with the matter who was not authorized to comment.
The Hollywood Reporter reported earlier that Endeavor wanted to back out of the deal, after the New York Times reported that Endeavor was reassessing it.
A spokeswoman for Endeavor declined to comment.
Endeavor's abandonment of the Saudi money would be the latest sign that Hollywood is backing away from the potential business opportunity in the restrictive Middle Eastern country after the disappearance of Khashoggi, a former palace insider who became a critic of conservative nation's monarchy.
Saudi Arabia _ which has 30 million people, many of whom are young and highly educated _ is viewed as a potentially lucrative new market for American entertainment companies.
Saudi Crown Prince Mohammed bin Salman toured Los Angeles earlier this year as part of a larger visit to the United States. He was welcomed by studio chiefs, media tycoons and top-tier filmmakers, as well as Silicon Valley bigwigs.
Mohammed was hailed as a reformer, partly because of his openness to modernization and his desire to turn Saudi Arabia into an entertainment hub. The country has lifted a 35-year ban on movie theaters and recently allowed women to drive.
But multiple media industry heavyweights have distanced themselves from the country in recent days. Executives including Viacom Inc. chief Bob Bakish and STX Entertainment head Bob Simonds have decided not to participate in an upcoming conference in the Saudi capital, Riyadh.
A year ago, Khashoggi went into self-imposed exile in the United States after a government crackdown netted dozens of people, some of them his friends, as the crown prince moved to consolidate power. The 59-year-old has not been seen since he walked into the Saudi Consulate in Istanbul, Turkey, on Oct. 2. He had gone there to obtain a document before his pending marriage to his Turkish fiancee.
Saudi Arabia has disavowed any knowledge of what happened to Khashoggi. On Sunday the nation threatened economic retaliation against anyone who sought to act against it.
