Disney Shareholders Demand Transparency Over Kimmel Suspension

Shareholders of The Walt Disney Company have expressed concerns regarding the recent suspension of late-night host Jimmy Kimmel. In a letter addressed to CEO Bob Iger, attorneys representing the American Federation of Teachers (AFT), the AFL-CIO, and Reporters Without Borders questioned whether the board and executives prioritized political or affiliate considerations over the company's and its stockholders' best interests.

The letter suggests that the board and executives may have breached their fiduciary duties by placing improper considerations above the company's and its stockholders' best interests. It also indicates that the AFT and Reporters Without Borders are assessing the board's ability to impartially consider a demand for action, including the possibility of filing a derivative lawsuit on Disney's behalf if fiduciary duties were not properly discharged.

The suspension of Kimmel's show, "Jimmy Kimmel Live!", reportedly led to a significant decline in Disney's stock value, amounting to a $4 billion loss. The letter attributes this decline to the abrupt decision to suspend Kimmel, which appeared to be in response to threats from FCC Chairman Brendan Carr and actions by ABC affiliates owned by Nexstar Media Group and Sinclair Broadcast Group, who refused to air the show.

The letter sets a deadline of five business days for Disney to respond, stating that failure to comply may result in legal action to compel the production of relevant documents and communications. It also emphasizes the importance of preserving all related documents and communications.

Disney has not responded to requests for comment on the letter. Roberta Kaplan, one of the attorneys representing the shareholders, emphasized the importance of freedom of speech, stating that the government should not threaten to punish individuals for their speech, and large media companies should not succumb to unconstitutional threats or blackmail.