NEW YORK, May 18 (Reuters Breakingviews) – Walt Disney (DIS.N) isn’t mickey-mousing around. The $170 billion media company said on Thursday that it was pulling a $1 billion project that would have moved jobs from California to the Sunshine State – part of expansive plans that include spending $17 billion on revamping its flagship Florida theme park over the next decade.
Disney’s threatened retreat from the state is meaningful, and it can get worse for the state’s leader, Governor Ron DeSantis.
The battle between the two sides escalated last year when state Republicans passed legislation targeting a district that housed Disney’s theme parks that allowed it special tax rules and self-governing abilities.
DeSantis signed a bill in February aimed at taking control of that district, stripping it of some of its controls. Disney’s Chief Executive Bob Iger called the move “anti-business”, though nonetheless announced the company’s investment plans at its annual shareholder meeting.
A further pullback on spending would have big consequences for the local economy. DeSantis, a Republican, personally also has a lot riding on the decisions he makes impacting business.
He is expected to enter the presidential race next week as a member of the party traditionally seen as aligned with big companies. If he starts to make enemies with the Mouse House, other powerful corporate leaders might share in Iger’s dismay.
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.)
CONTEXT NEWS
Walt Disney is cancelling plans to build a nearly $1 billion corporate campus, according to an email to employees on Thursday. Disney parks chief Josh D’Amaro said “changing business conditions” prompted Disney to reconsider its 2021 plan to relocate employees. The decision comes in the midst of an ongoing legal battle with state Governor Ron DeSantis.
DeSantis will officially enter the 2024 U.S. presidential race next week, according to a Reuters story citing two sources familiar with the decision.