More details have been revealed about why WWE's deal with Charlie Sheen fell apart. His appearance on the 1,000th RAW event through Skype was his one and only appearance. It was through a verbal agreement as both expected to work together in the future, but nothing was ever finalized.
The plan was for Sheen to appear on two more episodes of RAW and have a match with Daniel Bryan at SummerSlam. When WWE found out how much money he wanted to wrestle, they put a stop to the whole thing. WWE officials were also worried about what his reputation would do for the company. This was around the same time that the company's stage caught fire, AW made his "Kobe Bryant" comments and Rosa Mendes was abused by a former WWE talent.
They decided the risks outweighed the benefits and cut their losses.