What happened: On March 9, 2022, former Disney CEO Bob Chapek attacked Gov. Ron DeSantis (R., Fla.) for supporting the Parental Rights in Education bill, instigating a feud with the popular governor that persists to this day. Since then, Disney’s stock price has lost a third of its value.
By the numbers:
Disney stock was trading at $133.65 a share when Chapek accused DeSantis of promoting legislation that would “unfairly target gay, lesbian, nonbinary, and transgender kids and families.”
Disney shares opened at $89.44 and continued to fall on Wednesday ahead of DeSantis’s formal entry into the 2024 presidential campaign.
That’s a decline of 33.1 percent in a little over 14 months.
Disney announced Wednesday it was preparing to heartlessly fire more than 2,500 employees in an effort to save money.
What they’re saying:
“Ron DeSantis couldn’t beat Donald Duck, how the hell does he think he’s going to fare against Donald Trump?” Nina Turner, the left-activist and failed congressional candidate backed by Bernie Sanders, said on Tuesday.
“You know, if you can’t beat Donald Duck, how are you gonna beat Donald Trump?” Kari Lake, the failed gubernatorial candidate backed by former president Donald Trump, said while attacking DeSantis on Tuesday.
Why it matters: Corporations shouldn’t pick fights with politicians, especially not a popular governor who was overwhelmingly reelected last year.
Bottom line: He fights. He wins.
Analysis
The feud between Bob Chapek and Gov. Ron DeSantis has had a significant impact on Disney’s stock price, which has dropped by a third since the incident. The decline in stock price has been accompanied by Disney’s announcement of layoffs, which has further damaged the company’s reputation. Meanwhile, DeSantis has been reelected with a significant margin, and his popularity has only grown since the feud began.
What’s Being Said
The feud has attracted attention from both sides of the political spectrum, with left-activist Nina Turner and failed gubernatorial candidate Kari Lake both weighing in on the matter. However, the consensus seems to be that corporations should avoid picking fights with politicians, especially those who are popular and have a strong base of support.
Conclusion
The feud between Chapek and DeSantis serves as a cautionary tale for corporations that may be tempted to engage in political battles. In the end, it’s clear that DeSantis emerged victorious, and Disney suffered significant losses as a result of the conflict.
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