Disney has found itself under fire once again, but this time, the criticisms are coming from within its own ranks. The controversy surrounding the suspension of Jimmy Kimmel Live! has sparked not only public backlash but also internal protests from a group of Disney shareholders.
These investors are accusing the company of prioritizing political and affiliate considerations over the financial welfare of the company, claiming that Disney’s actions have led to significant financial harm and a breach of fiduciary responsibility.
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The events leading to this confrontation began on September 17, when Disney made the abrupt decision to pull Jimmy Kimmel Live! from the air after Kimmel made controversial comments about Charlie Kirk and Donald Trump. Before making the call, Disney had been informed by affiliate broadcasters NexStar Media and Sinclair Broadcasting that they would not air the show due to the remarks.
As a result, the network suspended the late-night program, a decision that triggered an outpouring of support for Kimmel from various public figures and even some former Disney employees.
Within days, Disney faced fierce backlash. Prominent figures like former President Barack Obama, former Disney CEO Michael Eisner, and well-known actors such as Mark Ruffalo and Tom Hanks all criticized the company’s decision.
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Protests also erupted outside Disney’s Burbank studio lot, as fans and employees alike voiced their discontent with the suspension.
Following the suspension, Kimmel’s legal team began working to bring the host back to the air, entering negotiations with Disney. Sinclair Broadcasting, however, set a list of demands for Kimmel’s return, including a public apology to Charlie Kirk’s family. Kimmel refused to comply, claiming that his comments were “mischaracterized” and that he would not “kowtow to the outrage.”
On September 22, Disney made the decision to reinstate Kimmel, announcing that Jimmy Kimmel Live! would return to the airwaves the following night, September 23. However, the controversy didn’t end there.
Related: Sinclair Broadcast Group Confirms Decision Not to Air Jimmy Kimmel’s Return Episode
In addition to external criticism, Disney found itself under scrutiny from its shareholders, some of whom accused the company of “breaching its fiduciary responsibility” by making decisions based on “improper political and affiliate considerations” rather than focusing on the financial interests of the company.
The group of shareholders, which includes the American Federation of Teachers and Reporters Without Borders, voiced their concerns in a letter obtained by Semafor, stating:
Although we are pleased that ABC did the right thing and put Jimmy Kimmel back on the air last night, due to the Trump administration’s continued threats to free speech, including with respect to ABC, we are writing to seek transparency into the initial decision to suspend him and his show.
There is a credible basis to suspect that the Board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above the best interests of the Company and its stockholders.
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They are requesting access to Disney’s “corporate books and records” to investigate any potential wrongdoings, claiming that the suspension harmed Disney’s brand and financial standing.
Disney is legally required to provide access to certain records under Delaware law, but the shareholders are restricted from seeing day-to-day management decisions. They are asking for board-level communications and financial data that could reveal how the suspension impacted the company financially.
The shareholders are particularly concerned about how the suspension affected Disney’s revenue, particularly its advertising and streaming services, and how Disney executives make decisions about “politically sensitive programming.”
Related: Inside Disney’s Business Decision to Remove Jimmy Kimmel
In their letter, the group claimed:
The fallout from suspending Jimmy Kimmel Live! sparked criticism as an attack on free speech, triggered boycotts and union support for Mr. Kimmel, and caused Disney’s stock to plummet amid fears of brand damage and concerns that Disney was complicit in succumbing to the government overreach and media censorship.
The impact on Disney’s stock was immediate. Following Kimmel’s suspension, Disney’s stock fell by over 2%, representing a loss of approximately $4.4 billion in market value. Shareholders argue that this drop is directly tied to the company’s decision to suspend Kimmel and the subsequent backlash, which they say has damaged the company’s reputation and hurt investor confidence.
Do you believe Disney shareholders have a valid claim about the company’s financial management? Do you think the suspension of Jimmy Kimmel Live! will continue to affect Disney’s stock price and brand? Are you glad to see Jimmy Kimmel back on TV? Share your thoughts with us in the comments below!
The proof is in the pudding! His viweeship is down 64% today. He isn’t funny. He’s not a comedian. On a scale of 1 to Johnny Carson (10), he’s a -1. Too much personal attacks and nasty politics. Like when George Carlin stopped being funny and started snarling at us, his career went south. Kimmel should buy a used car business and try selling cars for a living before he tanks on live TV.