DeSantis and Disney
DeSantis and Disney
Florida Governor Ron DeSantis claimed that he has moved on from the feud with the Walt Disney Company that resulted in an ongoing lawsuit against his government.
The prolonged conflict between DeSantis and Disney began in 2022, when the entertainment giant spoke out against the state's Parental Rights in Education Act, better known colloquially as the 'Don't Say Gay Bill,' which strictly limited the ability for teachers to discuss gender and sexuality issues in public schools. The governor pushed back against the company, pushing for legislation that ultimately dissolved the special jurisdiction that had allowed Disney a special level of self-governance around its popular Walt Disney World theme park.
Over the course of the feud, Disney managed to enact a special declaration that allowed them to retain development rights within the special governance region and filed a lawsuit against the DeSantis administration alleging that the company had been targeted with political retribution for exercising its First Amendment rights. While the administration has fought to push back against these maneuvers, many have argued that they have damaged DeSantis's credibility as a leader, with former RNC Chair Michael Steele saying, 'When you lose a battle against Mickey Mouse, it's kind of hard to take you seriously.'
During a Monday interview with CNBC, DeSantis, who is currently seeking the GOP nomination for president in 2024, both stood by his government's efforts targeting Disney and claimed that he and his allies had 'basically moved on' from the feud. He argued that Disney "will lose this lawsuit" and urged CEO Bob Iger to drop it, citing the business other parks could do in Florida without a management zone. special.
"It's a great place to do business," says DeSantis. “Your competitors are all doing great here, Universal, SeaWorld. They don't have the same privileges as you. So all we want is to treat everyone the same, and let's move on. I completely agree with that. But I don't agree with giving special privileges, you know, to a particular company to the exclusion of all others.
'I just want to say, go back to what you did well. I think that would be the right business decision, and all that.
Newsweek has reached out to Disney via email for comment.
Despite claiming to have "ignored" the feud, DeSantis frequently cited his conflicts with Disney during his presidential campaign, at one point accusing the company of child molestation. Iger, speaking to CNBC in July, denied that allegation in strong words.
"The last thing I want for the company is to get embroiled in culture wars," says Iger. “We are the top performers in the world and are proud of our achievement there. Quite frankly, the idea that Disney somehow sexualizes children is absurd and inaccurate.
Iger also defended his company's lawsuit against the Florida government, arguing that Disney "has a right" to speak out against the Don't Say Gay bill, and saying DeSantis' response "wasn't what it was." we can sit still and forgive." .'
A new office complex and the relocation of a division in California should have created more than 2,000 jobs, but went bankrupt as the company and Governor Ron DeSantis continued to clash.
The project, near Orlando's Lake Nona Town Center, above, involves the relocation of Disney employees from Southern California. Credit... Disney
In March, Disney called Florida Governor Ron DeSantis an "anti-business" for his scorching efforts to tighten surveillance at the company's theme park near Orlando . Last month, when Disney sued the governor and his allies over what he called a "targeted government campaign of retaliation," the company made clear that $17 billion of planned investments in Walt Disney World is in danger.
'Does the government want us to invest more, employ more workers and pay more taxes?' Robert A. Iger, Disney's chief executive, said on an earnings conference call with analysts last week.
On Thursday, Iger and Josh D'Amaro, Disney's president of amusement parks and consumer products, showed they weren't cheating by unplugging a proposed office complex built in Orlando at a cost of about $1 billion. . That would bring more than 2,000 Disney jobs to the region, with median salaries of $120,000, according to Florida Department of Economic Opportunity estimates.
The project, near downtown Lake Nona, was expected to cost $864 million, but the estimated price has recently reached nearly $1.3 billion. Disney planned to move up to 2,000 employees from Southern California, including most of the so-called Imagineering division, which works with Disney studios to develop theme park attractions.
Most affected employees complained harshly about having to move - some quit - but Disney kept going, in part because the Florida tax credit would allow the company to recoup up to 570 million dollars over 20 years for the construction and occupancy of the complex.
When announcing the project in 2021, Mr. D'Amaro cited the rationale as "Florida's business-friendly environment".
Mr. D'Amaro's tone in Thursday's email to employees was much colder. He cited "changing business conditions" as the reason for the cancellation of the Lake Nona project. "I remain optimistic about the business direction of Walt Disney World," D'Amaro said in the memo. He noted that $17 billion is still set aside to build Disney World over the next decade — growth that will create about 13,000 jobs. "I hope we can," he said.
The memo viewed by The New York Times made no mention of Mr. DeSantis. But the company's battle with the governor and his allies in the Florida Legislature contributed prominently to Disney's decision to cancel the Lake Nona project, according to two people briefed on the matter. this on condition of anonymity to discuss private discussions. A spokesman for Mr Iger said he was not available for an interview.
A spokesman for Mr DeSantis said in an email: 'Disney announced the possibility of establishing a Lake Nona campus nearly two years ago. The project never materialized and the state is unsure if it will. Given the company's financial difficulties, falling market capitalization, and falling share price, it's not surprising that the company is restructuring its business and canceling failed business ventures.
Florida officials have repeatedly pointed to the development of Lake Nona as an example of economic dynamism in Orlando, which has taken a heavy toll during the pandemic. Noting that hotel chains and retailers are moving to the Lake Nona area in anticipation of Disney's arrival, the Orlando Business Review in January called the resort "the main economic driver of the area." area."
In a statement, Jerry L. Demings, the mayor of Orange County, which includes Orlando, said he was "unfortunate" that Disney canceled its plans. “However, these are the consequences of not having an inclusive and collaborative work environment between the State of Florida and the business community,” Mr. Demings said.
Government Gavin Newsom from California thanks Disney. "That's over 2,000 jobs that will be welcomed by Golden State with open arms," Newsom wrote on Twitter.
Disney incurred millions of dollars in project-related costs, including relocation costs for approximately 200 employees who had moved to Florida from California. Mr D'Amaro said in his memo that the company would discuss options with those workers, "including the possibility of bringing you back". (It's unclear if any of those who quit instead of moving will have the option to return to their jobs.) The Lake Nona project was originally slated to open next year. Last July, Disney pushed back the move to 2026, citing construction delays related to the pandemic.
The Lake Nona campus, about 20 miles from Disney World near Orlando International Airport, was championed by Bob Chapek, who was Disney's chief executive from 2020 until his layoff last year. Mr. Iger, who retired to take over at Disney, was much less enthusiastic about the project - even before the company got mired in a fight with Mr. DeSantis. As soon as he returned to Disney, for example, Iger began telling associates that it made no sense to move Imagineering away from Disney studios. As he likes to say, "creative teams need to stay together."
Mr. Iger has repeatedly rejected Mr. Chapek's decisions. For example, in February, he announced that Disney would restructure its internal operations, ending the framework put in place by Mr. Chapek. In March, amid mass layoffs, Mr Iger ended a 50-person metaverse project Mr Chapek had started.