Though @Disney lost this fight, it rids CEO @RobertIger of one major distraction in his quest to right Disney’s ship. It will also accelerate short-term park expansions now that the company can operate on solid ground.
This is important because the park business is a major cash cow for Disney while its other businesses, TV and movies, are in decline or show weakness and the new #CTV advertising business is still ramping up. Disney+ is still losing money and cannot yet make up for the losses in TV. An expanded park business will buy Disney time.
This will also reduce the pressure on Disney brought by activist investor Nelson Peltz’ proxy fight for seats on Disney’s board.
Iger had publicly criticized #Florida’s law restricting classroom instruction on gender identity and sexual orientation, dubbed “Don’t Say Gay” by its opponents. In reply, the state legislature removed Disney’s control over the special tax district containing the company’s parks that it had had for decades.
Disney then passed large park expansion plans just before the new governing entity of the district, the Central Florida Tourism Oversight Board, took power.
In this settlement, Disney agreed to rescind those plans. It did however only put on hold its appeal of the dismissal of its lawsuit against Florida contending the legislature’s move was in retaliation for Disney opposing the law.
However, it appears that frozen appeal is a bargaining chip in negotiations over future park expansions. –
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