Earlier this year, Disney’s stock (NYSE: DIS) experienced a significant downturn following a wave of backlash from conservative activists, who criticized the company for promoting liberal or progressive agendas and alleged political bias in its content.
Adding to the turmoil, Disney found itself embroiled in a fierce feud with Florida’s Republican governor, Ron DeSantis. The dispute began over a recently passed bill banning discussions of sexual orientation and gender identity in early education.
Moreover, the perpetual Disney-DeSantis saga continued to escalate on Wednesday, July 26, after the public police force responsible for offering off-duty services to Disney’s theme park in central park faces a potential ban, Politico reported.
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What happened?
According to the reports, the governing board appointed by Florida Gov. Ron DeSantis is considering substantial spending cuts for the area that spans thousands of acres and grants Disney self-governing status.
Among the proposed cuts is the annual $8 million expenditure on law enforcement services exclusively dedicated to Disney’s properties, as revealed during a recent public meeting by board chair Martin Garcia. The move could have significant ramifications for security measures within Disney’s popular Florida-based entertainment park.
“That doesn’t make any sense to me and it doesn’t make any sense to anybody on our team that’s looked at it,” Garcia said, emphasizing that the entertainment and media giant was not the only taxpayer in the area.
The proposed cuts come as Gov. DeSantis continues to slam Disney while running a presidential campaign. The squabble between DeSantis and Disney started after the latter criticized a Florida law limiting how and when sexual orientation and gender identity can be taught in public schools, resulting in a legal battle.
In response, DeSantis took a number of measures against the company. He described Disney as “woke” and “corporate America”, and threatened to revoke the media conglomerate’s special tax district status, which gives the company significant autonomy over its operations in Florida. In May, Disney abandoned plans to build a $1 billion corporate campus for 2,000 employees in Florida.
Walt Disney stock analysis
At press time on July 27, shares of Walt Disney were standing at $85.86, up 0.27% in the past 24 hours. The stock fell around 0.4% on the weekly chart, while its monthly losses stand at 2.5%
Over the past 3 months, DIS’s share price plummeted by more than 12%. The bulk of these losses occurred in May after conservative activists launched boycotts against the company’s progressive campaigns.
While Disney’s shares haven’t experienced sharp declines in the more recent period, the ongoing tensions are keeping investors on high alert.
In the upcoming weeks, the focus will be on Disney’s share price as market participants eagerly await the decision of Florida’s governing board on the proposed spending cuts.
Any approval of these cuts could have far-reaching consequences for Disney’s entertainment operations within the state, potentially making it an important factor in shaping the company’s future performance.
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