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Opera at Covent Garden (1734–41)

In 1733, the Earl of Essex received a letter with the following sentence: "Handel became so arbitrary a prince, that the Town murmurs." The board of chief investors expected Handel to retire when his contract ended, but Handel immediately looked for another theatre. In cooperation with John Rich he started his third company at Covent Garden Theatre. Rich was renowned for his spectacular productions. He suggested Handel use his small chorus and introduce the dancing of Marie Sallé, for whom Handel composed Terpsicore. In 1735, he introduced organ concertos between the acts. For the first time, Handel allowed Gioacchino Conti, who had no time to learn his part, to substitute arias. Financially, Ariodante was a failure, although he introduced ballet suites at the end of each act. Alcina, his last opera with a magic content, and Alexander's Feast or the Power of Music based on John Dryden's Alexander's Feast starred Anna Maria Strada del Pò and John Beard.

Early 1737 he produced Arminio and Giustino, completed Berenice, revived Partenope, and continued with Il Parnasso in Festa, Alexander's Feast, and the revised The Triumph of Time and Truth which premiered on 23 March. In April Handel suffered a mild stroke, or rheumatic palsy, resulting in temporary paralysis in his right hand and arm. After brief signs of a recovery, he had a relapse in May, with an accompanying deterioration in his mental capacities. He had strong competition from John Frederick Lampe; The Dragon of Wantley was first performed at the Little Theatre in the Haymarket in London on 16 May 1737. It was a parody of the Italian opera seria.

In Autumn 1737 the fatigued Handel reluctantly followed the advice of his physicians and went to take the cure in the spa towns of Royal Tunbridge Wells, Aix-la-Chapelle (Burtscheid) in September. All the symptoms of his "disorder" vanished by November. On Christmas Eve Handel finished the score of Faramondo, but its composition was interrupted by that of the Funeral Anthem for Queen Caroline. On Boxing Day he began the composition of Serse, the only comic opera that Handel ever wrote and worked with Elisabeth Duparc.

A harp and organ concerto (HWV 294) and Alexander's Feast were published in 1738 by John Walsh. He composed music for a musical clock with a pipe organ built by Charles Clay; it was bought by Gerrit Braamcamp and was in 2016 acquired by the Museum Speelklok in Utrecht. Deidamia, his last opera, a co-production with the Earl of Holderness, was performed three times in 1741. Handel gave up the opera business, while he enjoyed more success with his English oratorios.