Brand Makers
Dil Ka Jod Hai, Tootega Nahin
Disney faces shareholder backlash over Jimmy Kimmel suspension, investors demand transparency
Disney investors, including AFL-CIO and AFT, have demanded internal records on Jimmy Kimmel’s recent suspension, alleging fiduciary breaches and political interference. They warned of legal action if Disney fails to provide details on financial and affiliate impacts.
Disney abruptly pulled Jimmy Kimmel Live! this week following the host’s remarks on conservative activist Charlie Kirk, who was killed in a Utah shooting.
Walt Disney Co. is facing fresh heat from investors after several shareholder groups demanded access to internal records related to last week’s suspension of late-night host Jimmy Kimmel, Reuters reported. The move reflects mounting concerns over corporate governance, political pressure and potential financial fallout tied to the controversy.
In a letter sent Wednesday, lawyers representing the American Federation of Teachers, AFL-CIO, and Reporters Without Borders asked Disney to disclose documents explaining how the company arrived at its decision to temporarily pull Jimmy Kimmel Live from air. The letter alleged a “credible basis” to suspect that Disney’s board and executives may have breached fiduciary duties by prioritizing political or affiliate concerns over shareholder interests.
The dispute stems from Kimmel’s remarks on September 15 about the accused killer of right-wing activist Charlie Kirk, which ignited outrage on social media and drew pressure from the Trump administration. Disney-owned ABC suspended the show for nearly a week before Kimmel returned on Tuesday night, combining humor with contrition in his first broadcast back.
Ironically, the episode drew 6.26 million viewers, the program’s biggest audience in more than a decade, even though affiliates Nexstar and Sinclair, who operate about 70 ABC stations, refused to air it. Shareholders are now seeking records that quantify the potential revenue hit and explain Disney’s negotiations with affiliates over the incident.
The groups have threatened legal action if Disney fails to provide the requested documents within five business days. Such a lawsuit could put Disney’s leadership under court scrutiny at a time when the company is already battling activist investors, declining linear TV revenues and ongoing succession challenges.
Disney has not responded to the shareholder demands.
SPOTLIGHT
"The raucous, almost deafening, cuss words from the heartland that Piyush Pandey used with gay abandon turned things upside down in the old world order."
Read MoreThe new face of the browser: Who’s building AI-first browsers, what they do and how they could upend advertising
From OpenAI’s ChatGPT-powered Atlas to Microsoft’s Copilot-enabled Edge, a new generation of AI-first browsers is transforming how people search, surf and interact online — and reshaping the future of digital advertising.