Categories: World

Florida governor and Disney CEO angry at each other: ‘This is anti-business’

Florida Governor Ron DeSantis and Disney CEO Bob Iger disagree. DeSantis wants top Disney executives investigated for expressing support for the LGBT community. The governor calls him “too smart”. Iger argues that it’s a matter of freedom of expression. “This battle of political culture appears to have largely overtaken investors,” says investment strategist Wim Zwanenburg of Stroeve & Lemberger.

DeSantis is angry that former Disney CEO Bob Chapek has spoken out against the “Don’t Say Gay” law. He stipulates that teachers are not allowed to discuss LGBTI-related topics with children up to nine years old. According to Disney CEO Iger, the measures the governor now wants to take are “anti-business” and “anti-Florida.”

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“Ultimately, this story is about who controls Disneyworld in Florida,” says Zwanenburg. “DeSantis calls the ‘Magic Kingdom’ a state within a state, but Iger points out that Florida has big interests in Disney.” Walt Disney World in Orlando attracts more than 50 million visitors each year.

“DeSantis goes against state business interests with his statements”

Wim Zwanenburg, investment strategist at Stroeve & Lemberger

According to Iger, Florida therefore has a large financial interest in the popular amusement park. It was also announced during the shareholders’ meeting that Disney wants to invest more than $17 billion over the next few years and that approximately 13,000 additional jobs will be created. “DeSantis therefore goes against the economic interests of the state with his statements.”

Political controversy

Disney thus became a party to a political controversy, while Bob Iger was recruited to strategically get the company back on track. Due to the great competition between various streaming services such as Netflix, HBO Max and Amazon Prime, Disney has to keep investing. Disney Plus is a loss on its own, but Disney as a whole is very profitable. Even if the shareholders lost a lot when the amusement parks were closed during corona,” says Zwanenburg.

The feud between DeSantis and Disney appears to be a major issue for shareholders. “During the meeting, there was a lot of discussion about how Disney should position itself now,” Zwanenburg says. “But the analyst reports focus primarily on Disney’s business prospects, which means the political culture battle appears to be partly ignored by the investor.”

Florida Gov. Ron DeSantis wants top Disney executives investigated for expressing support for the LGBT community. The governor calls him “too smart”. (ANP/Abaca Press)

Author: Myrtle Koopman
Source: BNR

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