Home Disney News Disney faces serious consequences after DeSantis signs new bill

Disney faces serious consequences after DeSantis signs new bill

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Disney faces serious consequences after DeSantis signs new bill
Credit: Disney

Disney has already faced a serious consequence after DeSantis signed the new law. Let us know your thoughts on what happened.

Florida vs. Disney Conflict

Credit: KtP

The state of Florida and Disney World have been in a heated match the last several weeks over House Bill 1557 – also called the Parental Rights in Education. You can read more about this in our story HERE.

The tension between Disney and the state of Florida escalated as state Republicans set their plans on repealing the Reedy Creek Improvement Act of 1967. Essentially, the law states that Disney is its own governing body within Orange and Osceola counties.

Reedy Creek Improvement Act of 1967

Credit: Disney

This Act allows Disney to make their own laws, zone their own land, and essentially do whatever they want within those limits. By stripping the company of those abilities, Disney would be regulated by Orange and Osceola Counties.

Emergency services would now be responsible for calls on Disney property. Disney would also have to seek approval for new attractions, restaurants, and hotels.

Bill Passes

www.rcid.org

Both the Florida Senate and House met this week and both voted on the bill to dissolve the Reedy Creek district. Then, yesterday, Governor Ron DeSantis signed the bill into law repealing the Reedy Creek Improvement Act of 1967.

Now What?

Screenshot of Ameritrade Disney Stock Activity

After the news spread through media sources yesterday, Disney faced an immediate financial consequence. Disney stock (DIS) hit the lowest price in over a year! Yesterday, April 22, Disney stock closed at $118. As you can see from the screenshot above, the 52-week stock price was $189.22. Do you think Disney stocks will rebound or continue to be low?

 What are your thoughts on Disney stock prices decreasing after DeSantis signs bill to repeal the Reedy Creek Improvement Act of 1967? Do you think it will go back up or not? Please share your thoughts with us in the comments below and on Facebook.

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16 COMMENTS

  1. My family (4 generations) have been visiting Disney World for almost 50 years. As if your spouse cheated, Disney betrayed us! The Magic has been destroyed. We’re getting divorced. No more visits to Disney theme parks, canceling Disney streaming and divesting all financial interest in Disney stocks and funds which invest in Disney. Angry and Heart Broken!

  2. Since this bill doesn’t actually take effect for over a year and there are provisions to renegotiate, I think speculators are actually missing the big picture. Disney has a large bond that needs to be paid off. As with the practices of government lately, there is a good chance that this is all a smoke screen to get rid of that bond without there actually being any real changes to anything else. Remember it wasn’t that long ago that Disney was a major contributor to DeSantis and if he is running for President, he is going to need major contributors again. This could all be just a “you scratch my back, I’ll scratch yours’ scenario. I think all of the loopholes were put into this bill for a reason and not sure all the facts have actually surfaced yet.

  3. Tax revenue from Disney and the Disney guests will continue to foot the expenses. What will be different now will be that Disney will need to have approval from Orange County to do improvements or construction in DW. Why should Disney be treated any differently than Universal, SeaWorld, Legoland, or any other business in the area? It shouldn’t. The Reedy Creek District should have been dissolved a long time ago.

  4. Hello ladies and gentlemen, boys and girls.
    The governor of Florida passes a law and Disney HQ’d in California makes a statement “Florida’s HB 1557, also known as the ‘Don’t Say Gay’ bill, should never have passed and should never have been signed into law,” “Our goal as a company is for this law to be repealed by the legislature or struck down in the courts. Does this sound a little retaliatory on Disney’s part? Now to disagree as a company may be their right but to make that statement might be stepping over the line a little? How about we don’t agree with the bill and we will respectfully voice our concerns with the Governor of the great state of Florida? Now a good course of action maybe to clean house on upper management? It does not look like a firing may be a recommended course of action but what about going about it like other business’s do with employee’s under contract. Pay them out and send them packing? Might be millions spent in the short term but could save billions in the long run? Those Disney stocks at an all time low might actually start going back up almost immediately and it might send a positive message to the paying customer base. As far as a tax bill to the local counties. There does seem to be a lot of special districts around if Florida. So every time one gets dissolved the locals pick up the tab if they mismanaged the district and accrued debt? Along with companies debt also comes their assets? Disney has a lot of assets (look at their portfolio) and probably just one of them could be sold off to more than satisfy that debt and cover the cost of all kinds of services for years for Disney World . Still confusing as to what the bill had to do with the company’s business operations and their paying customer base (K-3 year olds normally do not buy tickets)? With the special district in place do they even pay taxes to the schools? After 50 years it was probably time to reevaluate how much of an advantage Disney may be getting in comparison to their competitors in the area? Maybe re-creating the district with changes and leveling the playing field was long overdue anyway? It would seem that most going to Disney World are there for the most “Magical” time they can experience and not contributing to expanding Disney’s portfolio. Leave the drama at the gate? As long as you let others enjoy (and not interfere with) their time at the parks with their families most people do not care if you want to identify as Mickey or Minnie Mouse or a ham sandwich, that is your right. Right?

  5. I absolutely. agree. CEO, Bob Chapek, made a major error in getting involved in politics and slamming Governor DeSantis. Disney should be a magical place, not a political forum. I think it’s best that Chapek resign.

  6. I think once Florida realizes the extra expense, they just added to their tax load, they may want to rescind their new ruling. It is going to cost these counties big money to finance the EMS, Fire, Sanitation, etc. If they can’t put out a fire quick enough or get there quickly enough, I can see negligence lawsuits against the cities and counties. I’m quite sure Disney will come out of this on top. I might even add some Disney to my portfolio.

  7. Disney needs to stick to what they (used to) do best…customer service, entertainment and creating magical experiences. Stay out of politics. Politics can be a very slippery slope.

  8. Agree with all the previous comments. Disney needs to get back to entertainment and guest services…which they used to do so well.

  9. On behalf of ladies and gentleman, boys and girls…Please Disney, take responsibility for your WOKENESS and stop it! We so want to return to the Disney we knew and loved, but won’t as long as they’re allowing a small minority run the show.

  10. I can’t believe Disney fought over parental rights. The beauty of Disney used to be that you could go to Disney to escape controversies. now Disney is the one of the most controversial companies in the world. If Disney is going to mess in local politics, there is no reason why it should not be treated the same as every other company in Florida. i am very proud of Florida for enacting this bill.

  11. I agree I LOVE DISNEY BUT THE ONLY ONE THIS hurts is USI DISNEY won’t leave florida ,WALT choose it for a reason…the state has to stop being a baby punishing a child ,okay DISNEY got a huge break BUT THEY BRING ALOT OF REVENUE AND JOBS INTO THE STATE. not just direct employees what about all the business that are suppliers of everything

  12. I think Disney should have stuck to THEIR business…entertainment. Kudos to the the state of FL for defending parental rights. If WDW would understand they have NO business in politics and trying to take parental rights away; those topics/issues have no place in a school setting.

    Will be a long time before we return to WDW.

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