💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Analysis-DeSantis' showdown with Disney carries political risk

Published 04/26/2023, 06:08 PM
Updated 04/27/2023, 12:22 PM
© Reuters. FILE PHOTO: Florida Governor Ron DeSantis speaks at the 2023 NHGOP Amos Tuck Dinner in Manchester, New Hampshire, U.S., April 14, 2023.     REUTERS/Brian Snyder
DIS
-

By James Oliphant and Alexandra Ulmer

(Reuters) -In his face-off with Walt Disney (NYSE:DIS) Co, Florida Governor Ron DeSantis has frequently adopted the pose of a swaggering gunfighter out of the Wild West.

“There’s a new sheriff in town,” DeSantis boasts to conservative audiences nationwide as he prepares to launch his 2024 presidential bid.

The flex brings him cheers from the friendly crowds. But as his clash with Disney escalates, so does the political risk for DeSantis and his nascent campaign.

The news on Wednesday that Disney had filed a federal lawsuit against DeSantis brought him a fresh round of criticism, particularly from fellow Republicans who contend that DeSantis’ approach is at odds with the pro-business policies the party typically favors.

Former South Carolina Governor Nikki Haley, who is also seeking the 2024 Republican nomination, needled DeSantis, saying to Disney in a tweet “my home state will happily accept your 70,000+ jobs if you want to leave Florida.”

South Carolina, she said, “is not woke, but we’re not sanctimonious about it either.”

The lawsuit was the latest development in a battle sparked last year by Disney’s criticism of a Florida law that banned classroom instruction of sexual orientation and gender identity for young students, dubbed by opponents as the "don't say gay" bill. That led to the state’s attempt to strip the theme park of its independent governing powers.

The complaint accuses DeSantis of illegally using the state government to punish a company for exercising its free-speech rights.

Speaking in Jerusalem on Thursday as part of a week-long international trade mission, DeSantis decried the lawsuit.

"I don't think the suit has merit, I think it's political," DeSantis told reporters at a news conference.

FRESH CONCERNS

DeSantis is expected to announce his presidential run next month. And while his hardline stance against Disney has roused part of the conservative base, it has also prompted fresh questions about whether he can muster enough widespread support across the party to defeat former President Donald Trump in the 2024 Republican primary.

Trump has capitalized on the Disney drama, recently declaring on social media that the company was getting the better of DeSantis and suggesting that Disney could end up damaging Florida’s economy by reducing its footprint there.

While DeSantis has tried to portray himself as a trustworthy, pro-growth steward of Florida’s economy, his stance on Disney has left some deep-pocketed Republican donors befuddled. Billionaire Ken Griffin of Citadel Securities last year remarked that DeSantis’ actions amounted to “retaliation against corporate America.”

“The war with Disney made some sense for a time in the context of Governor DeSantis’ presidential aspirations. Now it’s coming across as petty and personal,” said Carlos Curbelo, a former Republican U.S. representative from Miami. “What seemed like a political win for the governor is starting to become a liability.”

Robert Bigelow, a hotel magnate who recently handed $20 million to a super PAC supporting DeSantis, said he was standing by the governor.

“On balance, the governor is a fair man and he is a lawyer, so I assume Disney and the governor are prepared for a strong fight,” Bigelow told Reuters on Wednesday.

In a national Reuters/Ipsos poll taken this week, 44% of Republicans said they had a more favorable view of DeSantis because of the fight with Disney. But 73% - including 82% of Democrats and 63% of Republicans - said they were less likely to support a political candidate who backs laws designed to punish a company for its political or cultural stances.

© Reuters. FILE PHOTO: Florida Governor Ron DeSantis speaks at the 2023 NHGOP Amos Tuck Dinner in Manchester, New Hampshire, U.S., April 14, 2023.     REUTERS/Brian Snyder

Mac Stipanovich, a retired Republican lobbyist in Florida and a frequent critic of DeSantis, said the governor had taken the conflict too far and could pay a political price.

“He has gotten all he is going to get out of this gambit with the right-wing zealots,” Stipanovich said. “From here on out, he will just appear more petty, vindictive and foolish to everyone else.”

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.