Walt Disney Co. DIS is not one to be cowed down by the Flordia state government's maneuverings, spearheaded by Governor Ron DeSantis, and remained increasingly committed to the state.
What Happened: Disney is set to invest $17 billion in central Florida's Walt Disney World hub over the next decade, CEO Bog Iger and Parks Chief Josh D'Amaro have been hinting over the past few months, CNBC reported. The investment will result in the creation of 13,000 jobs, the report added.
The entertainment giant's stance assumes importance as DeSantis has officially announced his candidacy for the 2024 Republican presidential primary.
D'Amaro reportedly told at the JPMorgan Global Technology, Media and Communications Conference that the $17 billion investment gives a sense of how aggressive the company is being in Walt Disney World.
Among the plans are the transformation of EPCOT Theme Park, the new Stars Tours attraction and the new Tiana attraction, the executive reportedly said. The investment will also go into some of the "blue sky" ideas Disney presented in 2022 at the D23 Expo in Anaheim, Califonia, he added.
See Also: Best Media Diversified Stocks
Why It's Important: Disney lending voice against Florida's "don't say gay" law, which prohibits discussion of sexual orientation and gender identity among young children in school, landed it in the crosshairs of DeSantis.
In retaliation, the Governor revoked the special administrative status Disney enjoyed for governing the land around its Florida Disneyland. The Iger-led company filed a lawsuit against DeSantis, alleging that the state was engaged in witch-hunting. The company also pulled the plug on a $1 billion project for shifting some of its California workforces to Florida.
A recent survey by Axios showed that Disney's reputation among the Republicans suffered a blow, taking the company’s overall reputation ranking lower. Reports suggest the standoff with Disney would hurt DeSantis as well.
Disney closed Friday’s session up 0.17% at $88.29, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
