Things for Disney just keep getting worse and worse. From failing movies at the box office and abysmal content on Disney Plus, to poor park attendance and ramifications from politically charged activists, resulting in the governor of Florida taking away Disney’s special autonomous tax status it enjoys in Florida, Disney is now being sued by an investor over the fallout from involving themselves in Florida’s politics. This, in addition to Disney’s plummeting stock price amid poor earnings from their 4th quarter, portends more bad news that Disney does not need right now. If this lawsuit prevails, will it start opening financial doors that Disney has so secretly kept under lock and key? Who knows. But it doesn’t look like Disney is going to see a light at the end of the tunnel anytime soon. Has Disney fallen too far? Has the once trusted brand for families, now the woke poster child for identity politics activists, just proved the old adage you reap what you sow?
Bob Chapek Tried to Keep Disney Out of the Politics
Disney investor Kenneth Simeone, filed a lawsuit in Delaware Chancery Court, alleging that Disney’s involvement in Florida’s Parental Rights in Education bill, resulted in severe financial loss for the company. Florida’s Parental Rights in Education bill, or the “Don’t say gay bill” dubbed by the fake news legacy media, stated that children in 3rd grade and younger are not allowed to be taught about explicitly sexual themes such as LGBTQ themed subjects. Then CEO Bob Chapek, trying to do what was sensible, initially kept Disney out of the political fray as the storm brewed from activists within the company. This only enraged the leftist activists within the company even more, eventually having Chapek bend the knee during a “hostage” video, in which Chapek basically vowed to fight against the legislation. This didn’t sit well with governor Ron DeSantis, who took swift action, resulting in the cancellation of the autonomous tax advantage Disney has enjoyed in Florida for over 50 years. It’s also worth noting that Bob Chapek was trying to stay neutral on the politics front…something his predecessor, now current CEO Bob Iger dove feet first into. The mess Disney is finding itself mired in presently, can all be attributed to Bob Iger’s obsession with leftist politics.
Related: Bad News for CEO Bob Iger
This Lawsuit Could Lay the Groundwork for Further Litigation Against Disney
Disney investor Kenneth Simeone, claims that this politically motivated action by Disney, has made Disney suffer financially. What’s interesting, is that Simeone is suing for internal records regarding the decisions Disney made surrounding the Florida bill. This would bring to light why Disney thought it pertinent to their business to get into the politics of Florida state, which could also lay the ground work for further litigation by Disney investors. Whether or not Simeone prevails in the lawsuit, it’s undeniable to the casual observer at least, that Disney has suffered as a result of their involvement in Florida’s politics. This has also, in my opinion, shown an unwanted spotlight on Disney’s obsession with identity politics in their content. As a result, the flood gates were opened and it was an identity politics free for all at Disney that turned off fans and more importantly, families that once trusted their children with Disney’s content.
Disney Might Just be in a Hole Too Big to Climb Out Of.
Ever since the Florida debacle, Disney’s stock has dropped precipitously. With its current value of $89, Disney is one of the Dow Jones’ worst performing stocks. It has even fallen below its historic pandemic level of $94, which at least then, Disney had the excuse of having a forced shutdown of its businesses. Sure, one could blindly lay the cause of Disney’s stock decline on current economical conditions, but with the failures at all branches of the company, it sure feels self inflicted. It’s no wonder some investors might be upset that their investment is failing. Kenneth Simeone has plenty of evidence to back up his lawsuit, it’s just a matter of winning against a giant like Disney. Disney is in a possible precarious situation right now, and this lawsuit by an investor might start a ball rolling that Disney can’t stop, and shed light on Disney’s true financial state.
