Now, a coalition of Disney investors are going public. Their demands for access to company records follow the shocking suspension of Jimmy Kimmel from his late-night show, “Jimmy Kimmel Live!” That’s what initiated the suspension in response to Kimmel’s September 15 monologue. In that performance, he took on the political argument over the assassination of right-wing activist Charlie Kirk. The investors argue that Disney’s cancellation was not in the best interests of shareholders, but motivated by political pressures.
“Jimmy Kimmel Live!” airs every weeknight at 11:35 p.m. ET and features a diverse lineup of guests, including celebrities, athletes, and comedians. Aside from policy discussions, the show’s most popular guests have been its musical acts and human interest subjects, joining its stand-up comedy intros in attracting mass audiences. A vibrant, high-energy vibe is created by a house band that backs Kimmel during much of the show.
Kimmel’s unexpected suspension has drawn furious outcry from the investors whose money she brought to the firm. In turn, they believe this decision was politically motivated, by party affiliation and not business considerations. Now, one of the lawyers representing the investors, Roberta Kaplan, tells NPR that she is inspired by that outcome. Kaplan stated, “A bedrock of the United States and the key to our survival as the world’s oldest democracy is freedom of speech.”
The investors contend that “Disney’s stock suffered significant declines in response to the abrupt suspension, which appeared to be in response to political threats.” In particular, they claim that the Board and executives violated their fiduciary duties. Rather than serving the interests of shareholders, they put the political first.
This is why the American Federation of Teachers and AFL-CIO filed motions to intervene last month. They, along with Reporters Without Borders, are advocating for more transparency. They are looking for board materials including communications and public policies related to Kimmel’s suspension. While this incident is very unfortunate, it does provide an important Edu to share with corporate governance advocates and free speech advocates.
“There is a credible basis to suspect that the Board and executives may have breached their fiduciary duties of loyalty, care, and good faith by placing improper political or affiliate considerations above the best interests of the Company and its stockholders.”
Disney has been facing growing pressure from investors and advocacy groups. They want transparency on how political whims are shaping the company’s programming choices. Its outcome could greatly affect the ability of entertainment companies to engage in political discourse in a world that is growing more and more politically polarized.