Walt Disney Co (NYSE: DIS) moves down in pre trading session on Monday, Chief Executive Bob Iger retaliated against Florida Republican Governor Ron DeSantis, calling him “anti-business” for what appeared to be reprisal against Disney for taking a position on legislation.
Despite originally attempting to maintain its neutral stance, Disney came out against Florida’s Parental Rights in Education Act, also known as the “Don’t Say Gay” bill since it forbids students from discussing their sexual orientation and gender identity in the classroom.
Soon after, DeSantis and the Florida legislature took action to remove the company’s virtual sovereignty over a 24,000-acre (9,712-hectare) tract around the Orlando Walt Disney World Resort.
Iger acknowledged that Disney may not have handled its stance on the measure effectively in response to a question at the company’s annual shareholder meeting, but noted that businesses had a right to voice viewpoints. He spoke
Iger stated, “To seek to penalize a firm for exercising a constitutional right, it simply seems absolutely wrong to me.”
Also, he mentioned that 50 million people will visit Disney World this year, and that Disney employs 75,000 people in the state. Iger stated that Disney intends to increase its commitment in Florida by spending $17 billion over the following ten years and adding 13,000 new jobs. The actions appear to be intended only as payback for a stance the corporation took, according to Iger. They also appear to be hostile to Florida.
A bill that gave DeSantis effective power over a board that monitors construction in the special taxing district was supported by Florida lawmakers in February. The governor gave his approval to the legislation and appointed five supervisors to oversee the areas where Disney had exercised a great deal of authority.
Disney has long sought for amendments to restrict the board’s power before the takeover by DeSantis’ picks. On Monday, DeSantis requested an investigation into what he claimed was a last-minute attempt by Disney and the departing board to “usurp the power” of the incoming board from Florida’s inspector general.
DeSantis stated in a letter obtained by Reuters that “these collusive and self-dealing agreements attempt to void the recently approved law, weaken Florida’s legislative process, and violate the will of Floridians.”
A suggestion that Disney provide an annual report detailing its reliance on China for labor, raw materials, finished goods, theme park income, and other factors was rejected by shareholders. A shareholder motion requesting additional details about the company’s charity efforts was also rejected.
