Connect with us

Politics

'Politics is bad for business.' Why Disney's Bob Iger is trying to avoid hot buttons

Published

on

'Politics is bad for business.' Why Disney's Bob Iger is trying to avoid hot buttons

Bob Iger wants out of the culture wars.

Walt Disney Co. and its chief executive have made a sharp pivot since doubling down on diversity and inclusion efforts in the wake of George Floyd’s murder in Minneapolis four and a half years ago. At the time, Disney’s top executives, including then-Chairman Iger, vowed in a message to employees: “We intend to keep the conversation going … for as long as it takes to bring about real change.”

The Magic Kingdom dropped its pomp greeting to fans for its nightly fireworks display. “Good evening, ladies and gentlemen, boys and girls” became a gender-neutral salutation to “dreamers of all ages.” Pixar’s animated movie, “Lightyear,” included a brief kiss between two women characters; and Disney’s animated film, “Strange World,” featured the company’s first biracial queer teen hero.

But in the past week, Disney acknowledged that a transgender athlete storyline had been removed from an upcoming Pixar animated series, “Win or Lose,” about a middle-school softball team. In a statement, Disney said it recognized “many parents would prefer to discuss certain subjects with their children on their own terms and timeline.”

And Iger signed off on the settlement of a high-profile defamation lawsuit brought last spring by President-elect Donald Trump, amid howls from journalists that the owner of ABC News had caved to political pressure.

Advertisement

Disney agreed to pay $1 million for Trump’s legal fees and donate another $15 million for Trump’s future presidential library.

Trump sued ABC News and anchor George Stephanopoulos last spring after the journalist asserted during an on-air interview that a civil court jury had found Trump “liable for rape” in a case brought by advice columnist E. Jean Carroll. Instead, New York jurors determined Trump was liable for “sexual abuse.”

Disney Chief Executive Bob Iger.

(Jay L. Clendenin/Los Angeles Times)

Advertisement

Some First Amendment experts believed ABC had a winning case, in part, because of a high hurdle for public officials to prove defamation.

The network “might well have prevailed if they had hung in there,” prominent journalist Margaret Sullivan wrote in a Substack opinion piece. “Instead, this outcome encourages Trump in his attacks on the press — and he needs no encouragement.”

Disney declined to comment for this story or make Iger available for an interview.

People close to the company, who were not authorized to comment, said Disney’s general counsel had recommended the settlement with Trump and that the decision to remove the transgender storyline from “Win or Lose” had been made months earlier.

A bruising fight with DeSantis

Disney’s retrenchment comes nearly three years after it found itself sinking in political quicksand.

Advertisement

In early 2022, Disney became a target for Florida Gov. Ron DeSantis after then-Chief Executive Bob Chapek waffled on a response to a Florida law aimed at preventing classroom discussions about sexual identity. Chapek’s instinct was to stay out of the fray and he initially defended the company’s initial silence, saying in a letter to Disney employees that corporate statements “do very little to change outcomes or minds.”

Such proclamations are “often weaponized by one side or the other to further divide and inflame,” Chapek wrote.

But after loud protests from employees and activists — and a Twitter post from then-retired Iger, who warned the Florida legislation “will put vulnerable, young LGBTQ people in jeopardy” — Chapek reversed course.

DeSantis seized on Disney’s shifting stance and branded the company as “woke.”

In conservative circles, the pejorative label stuck.

Advertisement

“When you assign a private entity to a political team, then very quickly people will begin to view things in that light,” said Michael Binder, a University of North Florida political science professor who studied the Disney-DeSantis dispute.

Iger, who returned as chief executive two years ago to replace Chapek, recognized the existential threat.

“Our primary mission needs to be to entertain,” Iger said during the company’s 2023 investor meeting. “It should not be agenda-driven.”

Iger increasingly has stressed the importance of steering the company away from overt political messaging.

“The stories you tell have to really reflect the audience that you’re trying to reach but that audience, because they are so diverse … can be turned off by certain things,” Iger said during an April appearance on CNBC. “We just have to be more sensitive to the interests of a broad audience. It’s not easy.”

Advertisement

Disney’s nearly two-year fight with DeSantis was bruising.

“DeSantis was using Disney as a political foil to make a case for his run for presidency,” said Binder, the director of University of North Florida’s Public Opinion Research Lab. “That was not something that we had seen before: Governors and elected officials outwardly attacking private companies, particularly a Republican going after a company.”

University researchers found DeSantis’ “woke” campaign against Disney had gained traction, at least among conservatives — despite the fact that Disney has long been one of Florida’s largest employers and a pillar of its tourism economy.

In a public opinion poll in early 2023 of Florida registered voters, the Public Opinion Research Lab found that only about 27% of Republicans in the state had a “favorable” view of Disney. Meanwhile, 76% of the Democrats polled were fans of the Mouse House.

“There was a huge split, and that’s not great for a company that’s trying to market to everybody,” Binder said.

Advertisement

Republican lawmakers closed ranks with DeSantis and Disney lost its unique land-use authority in Central Florida. Disney filed a First Amendment lawsuit the following year, arguing that DeSantis and state Republicans had waged a concerted campaign to punish Disney for exercising its speech rights to criticize Florida’s anti-LGBTQ+ legislation.

Earlier this year, a federal judge threw out Disney’s First Amendment lawsuit.

Disney settled with Florida, but the DeSantis episode brought into stark relief the hazards of promoting the company’s values to a global audience during polarizing times.

“Disney provides a product: entertainment,” said Charles Elson, a former director at the Weinberg Center for Corporate Governance at the University of Delaware. “It shouldn’t be about politics.”

Besides, Elson said, it becomes messy and costly for companies to extricate themselves after taking a political stand.

Advertisement

“When you get into politics, you are making a statement,” Elson said. “And when you get out, that also becomes a statement.”

Iger has long championed Disney’s efforts to diversify its casts and storylines.

The 101-year-old company introduced its first Black princess in 2009. Nearly a decade later, it released the movie “Coco,” which was rich in Latino culture. Its 2018 Marvel film, “Black Panther,” became a juggernaut, earning $1.3 billion in global ticket sales.

The original “Moana,” which was inspired by Polynesian mythology, earned the mantle of most streamed movie on Disney+. The sequel, released over Thanksgiving weekend, has shattered box office records and has already raked in $750 million internationally.

“Our businesses create entertainment, travel and consumer products whose success depends substantially on consumer tastes and preferences that change in often unpredictable ways,” the company said in its most recent annual report.

Advertisement

“Consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brand,” the report added.

A cloudy defamation case

Disney has since joined a growing list of businesses that have opted to stand down rather than antagonize the president-elect — to the dismay of some First Amendment experts who believed Disney could have defeated Trump‘s defamation claims in the ABC News case.

Last year, a federal judge in Florida tossed out a lawsuit Trump filed against CNN, which sought $475 million in punitive damages. Trump claimed his reputation had been sullied by the network’s references to his efforts to overturn the results of the 2020 election as “the Big Lie.”

But defending Stephanopoulos’ statements may have been more fraught, according to people familiar with Disney’s internal deliberations.

Disney’s General Counsel Horacio Gutierrez and other high-level executives grew concerned after the judge in the case last July denied Disney’s motion to dismiss the case, according to one knowledgeable insider. In that ruling, U.S. District Judge Cecilia M. Altonaga wrote that “a reasonable jury could interpret Stephanopoulos’s statements as defamatory.”

Advertisement

Altonaga was appointed by former President George W. Bush.

Disney also figured it risky to present the case to a jury in South Florida, where Trump is particularly popular, the knowledgeable people said. Polls also have found a growing lack of trust in the news media.

An ‘entertainment-first’ company

Disney lawyers recognized that some legal conservatives might champion the case to the U.S. Supreme Court, where three Trump appointments sit. What’s more, U.S. Supreme Court Justice Clarence Thomas has expressed a desire to overturn the landmark New York Times vs. Sullivan court decision, which would have been at the heart of the ABC News case.

Disney didn’t want to jeopardize 60 years of press freedoms bestowed through that decision. Not to mention the harm to Disney’s and ABC’s image by trying to withstand Trump broadsides during his second term. CNN, in particular, sustained reputational damage after dueling with Trump, who labeled the cable news channel “fake news.”

“You don’t want to get in a fight with the head of a government that regulates you,” Elson said. “Politics is bad for business.”

Advertisement

Disney is trying to walk — but not cross — the line. During its meeting with shareholders earlier this year, Iger said he believes Disney has “a responsibility to do good in the world.”

“The Disney company can have a positive impact on the world … fostering acceptance and understanding of … people of all different types,” Iger told CNBC last spring. “But we need to be an entertainment-first company.”

Politics

San Diego sues to stop border barrier construction

Published

on

San Diego sues to stop border barrier construction

NEWYou can now listen to Fox News articles!

The city of San Diego sued the federal government to stop the construction of razor wire fencing on city-owned land near the U.S.-Mexico border, accusing federal agencies of trespassing and causing environmental damage.

The city filed the complaint in the U.S. District Court for Southern California on Monday. The complaint named Department of Homeland Security Secretary Kristi Noem and Secretary of War Pete Hegseth among the defendants.

The city accused the federal government of acting without legal authority when they entered city property in Marron Valley and began installing razor wire fencing.

“The City of San Diego will not allow federal agencies to disregard the law and damage City property,” said City Attorney Heather Ferbert in a news release. She said the lawsuit aims to protect sensitive habitats and ensure environmental commitments are upheld.

Advertisement

NEWSOM SUES TRUMP ADMINISTRATION OVER CALIFORNIA NATIONAL GUARD DEPLOYMENT ORDER TO OREGON

San Diego is suing the federal government to stop the construction of razor wire fencing on city property in Marron Valley. (Justin Hamel/Bloomberg via Getty Images, File)

According to the lawsuit, federal personnel including U.S. Marines accessed the land without the city’s consent, and damaged environmentally sensitive areas protected under long-standing conservation agreements.

DHS Secretary Kristi Noem and Secretary of War Pete Hegseth were among the federal officials named in San Diego’s lawsuit. (Reuters/Brian Snyder; AP Photo/Alex Brandon)

San Diego argues the fencing has blocked the city’s ability to manage and assess its own property and could jeopardize compliance with environmental obligations.

Advertisement

An American flag can be seen through the barbed wire surrounding the CoreCivic Otay Mesa Detention Center on October 4, 2025 in San Diego, California. (Kevin Carter/Getty Images)

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

The lawsuit also accuses the federal government of trespassing and beginning construction without proper authority or environmental review, and unconstitutionally taking the land in violation of the Fifth Amendment.

Fox News Digital reached out to DHS and the Pentagon for comment.

Advertisement
Continue Reading

Politics

Commentary: Tim Walz isn’t the only governor plagued by fraud. Newsom may be targeted next

Published

on

Commentary: Tim Walz isn’t the only governor plagued by fraud. Newsom may be targeted next

Former vice presidential contender and current aw-shucks Minnesota Gov. Tim Walz announced this week that he won’t run for a third term, dogged by a scandal over child care funds that may or may not be going to fraudsters.

It’s a politically driven mess that not coincidentally focuses on a Black immigrant community, tying the real problem of scammers stealing government funds to the growing MAGA frenzy around an imaginary version of America that thrives on whiteness and Christianity.

Despite the ugliness of current racial politics in America, the fraud remains real, and not just in Minnesota. California has lost billions to cheats in the last few years, leaving our own governor, who also harbors D.C. dreams, vulnerable to the same sort of attack that has taken down Walz.

As we edge closer to the 2028 presidential election, Republicans and Democrats alike will probably come at Gavin Newsom with critiques of the state’s handling of COVID-19 funds, unemployment insurance and community college financial aid to name a few of the honeypots that have been successfully swiped by thieves during his tenure.

In fact, President Trump said as much on his social media barf-fest this week.

Advertisement

“California, under Governor Gavin Newscum, is more corrupt than Minnesota, if that’s possible??? The Fraud Investigation of California has begun,” he wrote.

Right-wing commentator Benny Johnson also said he’s conducting his own “investigation.” And Republican gubernatorial candidate Steve Hilton is claiming his fraud tip line has turned up “(c)orruption, fraud and abuse on an epic scale.”

Just to bring home that this vulnerability is serious and bipartisan, Rep. Ro Khanna, the Silicon Valley congressman rumored to have his own interest in the Oval Office, is also circling the fraud feast like a vulture eyeing his next meal.

“I want to hear from residents in my district and across the state about waste, mismanagement, inefficiencies, or fraud that we must tackle,” Khanna wrote on social media.

Newsom’s spokesman Izzy Gardon questioned the validity of many fraud claims.

Advertisement

“In the actual world where adults govern,” Gardon said, “Gavin Newsom has been cleaning house. Since taking office, he’s blocked over $125 BILLION in fraud, arrested criminal parasites leaching off of taxpayers, and protected taxpayers from the exact kind of scam artists Trump celebrates, excuses, and pardons.”

What exactly are we talking about here? Well, it’s a pick-your-scandal type of thing. Even before the federal government dumped billions in aid into the states during the pandemic, California’s unemployment system was plagued by inefficiencies and yes, scammers. But when the world shut down and folks needed that government cash to survive, malfeasance skyrocketed.

Every thief with a half-baked plan — including CEOs, prisoners behind bars and overseas organized crime rackets — came for California’s cash, and seemingly got it. The sad part is these weren’t criminal geniuses. More often than not, they were low-level swindlers looking at a system full of holes because it was trying to do too much too fast.

In a matter of months, billions had been siphoned away. A state audit in 2021 found that at least $10 billion had been paid out on suspicious unemployment claims — never mind small business loans or other types of aid. An investigation by CalMatters in 2023 suggested the final figure may be up to triple that amount for unemployment. In truth, no one knows exactly how much was stolen — in California, or across the country.

It hasn’t entirely stopped. California is still paying out fraudulent unemployment claims at too high a rate, totaling up to $1.5 billion over the last few years — more than $500 million in 2024 alone, according to the state auditor.

Advertisement

But that’s not all. Enterprising thieves looked elsewhere when COVID-19 money largely dried up. Recently, that has been our community colleges, where millions in federal student aid has been lost to grifters who use bots to sign up for classes, receive government money to help with school, then disappear. Another CalMatters investigation using data obtained from a public records request found that up to 34% of community college applications in 2024 may have been false — though that number represents fraudulent admissions that were flagged and blocked, Gardon points out.

Still, community college fraud will probably be a bigger issue for Newsom because it’s fresher, and can be tied (albeit disingenuously) to immigrants and progressive policies.

California allows undocumented residents to enroll in community colleges, and it made those classes free — two terrific policies that have been exploited by the unscrupulous. For a while, community colleges didn’t do enough to ensure that students were real people, because they didn’t require enough proof of identity. This was in part to accommodate vulnerable students such as foster kids, homeless people and undocumented folks who lacked papers.

With no up-front costs for attempting to enroll, phonies threw thousands of identities at the system’s 116 schools, which were technologically unprepared for the assaults. These “ghost” students were often accepted and given grants and loans.

My former colleague Kaitlyn Huamani reported that in 2024, scammers stole roughly $8.4 million in federal financial aid and more than $2.7 million in state aid from our community colleges. That‘s a pittance compared with the tens of billions that was handed out in state and federal financial aid, but more than enough for a political fiasco.

Advertisement

As Walz would probably explain if nuanced policy conversations were still a thing, it’s both a fair and unfair criticism to blame these robberies on a governor alone — state government should be careful of its cash and aggressive in protecting it, and the buck stops with the governor, but crises and technology have collided to create opportunities for swindlers that frankly few governmental leaders, from the feds on down, have handled with any skill or luck.

The crooks have simply been smarter and faster than the rest of us to capitalize first on the pandemic, then on evolving technology including AI that makes scamming easier and scalable to levels our institutions were unprepared to handle.

Since being so roundly fleeced during the pandemic, multiple state and federal agencies have taken steps in combating fraud — including community colleges using their own AI tools to stop fake students before they get in.

And the state is holding thieves accountable. Newsom hired a former Trump-appointed federal prosecutor, McGregor Scott, to go after scam artists on unemployment. And other county, state and federal prosecutors have also dedicated resources to clawing back some of the lost money.

With the slow pace of our courts (burdened by their own aging technology), many of those cases are still ongoing or just winding up. For example, 24 L.A. County employees were charged in recent months with allegedly stealing more than $740,000 in unemployment benefits, which really is chump change in this whole mess.

Advertisement

Another California man recently pleaded guilty to allegedly cheating his way into $15.9 million in federal loans through the Paycheck Protection Program and Economic Injury Disaster Loan programs.

And in one of the most colorful schemes, four Californians with nicknames including “Red boy” and “Scooby” allegedly ran a scam that boosted nearly $250 million in federal tax refunds before three of them attempted to murder the fourth to keep him from ratting them out to the feds.

There are literally hundreds of cases across the country of pandemic fraud. And these schemes are just the tip of the cash-berg. Fraudsters are also targeting fire relief funds, food benefits — really, any pot of public money is fair game to them. And the truth is, the majority of that stolen money is gone for good.

So it’s hard to hear the numbers and not be shocked and angry, especially as the Golden State is faced with a budget shortfall that may be as much as $18 billion.

Whether you blame Newsom personally or not for all this fraud, it’s hard to be forgiving of so much public money being handed to scoundrels when our schools are in need, our healthcare in jeopardy and our bills on an upward trajectory.

Advertisement

The failure is going to stick to somebody, and it doesn’t take a criminal mastermind to figure out who it’s going to be.

Continue Reading

Politics

Wyoming Supreme Court rules laws restricting abortion violate state constitution

Published

on

Wyoming Supreme Court rules laws restricting abortion violate state constitution

NEWYou can now listen to Fox News articles!

The Wyoming Supreme Court ruled on Tuesday that a pair of laws restricting abortion access violate the state constitution, including the country’s first explicit ban on abortion pills.

The court, in a 4-1 ruling, sided with the state’s only abortion clinic and others who had sued over the abortion bans passed since the U.S. Supreme Court overturned Roe v. Wade in 2022, which returned the power to make laws on abortion back to the states.

Despite Wyoming being one of the most conservative states, the ruling handed down by justices who were all appointed by Republican governors upheld every previous lower court ruling that the abortion bans violated the state constitution.

Wellspring Health Access in Casper, the abortion access advocacy group Chelsea’s Fund and four women, including two obstetricians, argued that the laws violated a state constitutional amendment affirming that competent adults have the right to make their own health care decisions.

Advertisement

TRUMP URGES GOP TO BE ‘FLEXIBLE’ ON HYDE AMENDMENT, IGNITING BACKLASH FROM PRO-LIFE ALLIES

The Wyoming Supreme Court ruled that a pair of laws restricting abortion access violate the state constitution. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

Voters approved the constitutional amendment in 2012 in response to the federal Affordable Care Act, which is also known as Obamacare.

The justices in Wyoming found that the amendment was not written to apply to abortion but noted that it is not their job to “add words” to the state constitution.

“But lawmakers could ask Wyoming voters to consider a constitutional amendment that would more clearly address this issue,” the justices wrote.

Advertisement

Wellspring Health Access President Julie Burkhart said in a statement that the ruling upholds abortion as “essential health care” that should not be met with government interference.

“Our clinic will remain open and ready to provide compassionate reproductive health care, including abortions, and our patients in Wyoming will be able to obtain this care without having to travel out of state,” Burkhart said.

Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction and delayed its opening. A woman is serving a five-year prison sentence after she admitted to breaking in and lighting gasoline that she poured over the clinic floors.

Wellspring Health Access opened as the only clinic in the state to offer surgical abortions in 2023, a year after a firebombing stopped construction. (AP)

Attorneys representing the state had argued that abortion cannot violate the Wyoming constitution because it is not a form of health care.

Advertisement

Republican Gov. Mark Gordon expressed disappointment in the ruling and called on state lawmakers meeting later this winter to pass a constitutional amendment prohibiting abortion that residents could vote on this fall.

An amendment like that would require a two-thirds vote to be introduced as a nonbudget matter in the monthlong legislative session that will primarily address the state budget, although it would have significant support in the Republican-dominated legislature.

“This ruling may settle, for now, a legal question, but it does not settle the moral one, nor does it reflect where many Wyoming citizens stand, including myself. It is time for this issue to go before the people for a vote,” Gordon said in a statement.

APPEALS COURT SIDES WITH TRUMP ON BUDGET PROVISION CUTTING PLANNED PARENTHOOD FUNDS

Gov. Mark Gordon expressed disappointment in the ruling. (Getty Images)

Advertisement

One of the laws overturned by the state’s high court attempted to ban abortion, but with exceptions in cases where it is needed to protect a pregnant woman’s life or in cases of rape or incest. The other law would have made Wyoming the only state to explicitly ban abortion pills, although other states have implemented de facto bans on abortion medication by broadly restricting abortion.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Abortion has remained legal in the state since Teton County District Judge Melissa Owens blocked the bans while the lawsuit challenging the restrictions moved forward. Owens struck down the laws as unconstitutional in 2024.

Last year, Wyoming passed additional laws requiring abortion clinics to be licensed surgical centers and women to receive ultrasounds before having medication abortions. A judge in a separate lawsuit blocked those laws from taking effect while that case moves forward.

The Associated Press contributed to this report.

Advertisement

Continue Reading

Trending