Disney's Leadership Crisis: Caught Between Trump and Kimmel's Free Speech

Strategic Insights -

Disney's CEO, Bob Iger, is facing a crisis of leadership as the company navigates the suspension of late-night's "Jimmy Kimmel Live!" amidst pressure from Trump administration officials and concerns over free speech. The decision to pull Kimmel's show has sparked an outcry, with critics accusing Disney of pandering to an increasingly censorious right. Iger is caught between two warring factions, with former Disney CEO Michael Eisner questioning the leadership of media companies in the face of intimidation.

Key Takeaways:

  • Disney's CEO, Bob Iger, is facing a leadership crisis as the company navigates the suspension of "Jimmy Kimmel Live!" amidst pressure from Trump administration officials and concerns over free speech.
  • The decision to pull Kimmel's show was made in response to comments he made about the killing of right-wing activist Charlie Kirk, which was characterized as "senseless" by Kimmel.
  • Federal Communications Commission (FCC) Chairman Brendan Carr has suggested that Kimmel should be disciplined, while Republican Senator Ted Cruz has warned that government should not be involved in deciding what speech is allowed.
  • Disney has a market cap of over $204 billion and owns several subsidiaries, including Pixar and Marvel Studios, which could be impacted by the company's decision to reinstate or cancel "Jimmy Kimmel Live!".
  • Industry observers say that Iger's foremost concern is running Disney well and doing what is in the best interests of the company, rather than taking ideological stands.
  • Disney has a history of wading into culture-war issues, with Iger resigning from a Trump business advisory council in 2017 and taking a public stand against Florida Gov. Ron DeSantis's "Don't Say Gay" law.

Statistics:

  • Disney's stock price closed at $113.76 on Friday, down nearly 1 percent on the day and 1.9 percent for the week.
  • The company has a market cap of over $204 billion.
  • The FCC has granted and can revoke broadcast licenses to station owners, which could impact Disney's subsidiaries.
  • Disney has pending deals with Fubo and the National Football League that require regulatory sign-off.
  • The company has a majority stake in ESPN, which also requires regulatory approval.

Sources:

  • Shannon Najmabadi, "Disney's CEO Bob Iger Faces Leadership Crisis Over Suspension of Jimmy Kimmel Live!", [The Independent Media Lab](https://www.independentmedialab.org/), 24 February 2023.
  • Lloyd Greif, chief executive of a Los Angeles-based investment bank active in the entertainment and media industry, as quoted in [The Washington Post](https://www.washingtonpost.com), 24 February 2023.
  • Matthew Dolgin, Morningstar analyst, as quoted in [Bloomberg](https://www.bloomberg.com), 24 February 2023.