The Walt Disney Company is pulling the plug on spending nearly $1 billion to establish a new corporate campus in Florida, costing the state much more than the additional money itself.
Around 2,000 workers would have relocated to a Disney-owned property at Lake Nona near Orlando, helping further develop the area. The deal is not dead.
DeSantis wanted to push Disney, thinking it would cave in under Republican pressure, but it seems like some things are more important than making a profit. Disney is fighting for its first amendment rights and dignity.
The state of Florida is waging war on Disney and enacting laws that would target a single corporation.
What is DeSantis' game plan?
DeSantis' office says Disney's move is "unsurprising."
Employees received word of the cancellation in an internal email. According to the email, "considerable changes" led to the company's decision.
Even though the email does not refer to politics or DeSantis, it has been taken to be a reference to growing hostilities between Disney and Florida lawmakers.
"Disney announced the possibility of a Lake Nona campus nearly two years ago. Nothing ever came of the project, and the state was unsure whether it would come to fruition," DeSantis' office said.
Many of the jobs that were slated for relocation to Florida were higher-paying, white-collar jobs and tech-focused positions.
Bob Iger, the previous chief executive who made an unexpected comeback to replace his successor, Bob Chapek, has proposed significant changes to strengthen the company's business, which has been under strain as the traditional film and television sectors are struggling.
Disney has been protected by the success of its theme parks, which have kept the company profitable, unlike other media organizations.
But as investors anticipate a difficult road ahead, the value of its share price has decreased by half since peaking in March 2021.
Earlier this year, Iger announced a plan to save $5.5 billion, involving a sweeping reorganization of the company's operations and roughly 7,000 job cuts.
What do you think about Disney pulling away from a major investment?
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