Staff Reports
The Walt Disney Company has taken a hit in the media spotlight after it opted to settle President-elect Donald Trump’s defamation lawsuit against ABC News for a staggering $15 million. This decision has all the hallmarks of a corporate backtrack, with executives getting spooked by the potential for a Florida jury to side with the former president. After all, those voters showed they weren’t shy about their preferences last November.
Disney’s head honcho Bob Iger, likely getting some unsolicited advice from worried lawyers, realized that dragging this case through the courts could lead to a decidedly un-magical conclusion. If the case had gone to the Supreme Court, it looked like the justices might revisit the New York Times v. Sullivan ruling—an outcome that would send shivers down the spines of media conglomerates everywhere. Keep that defamation shield intact, and avoid the hardworking folks over at Disney getting ambushed with a sizable verdict. Sounds like they chose the lesser of two evils and got out of the courtroom before the sharks could smell the blood in the water.
Report: Disney Executives Feared a Florida Jury Would Side with Trump in ABC News Defamation Case https://t.co/Zfb9wvUgOS
— Dawn Wildman (@WildmanDawn) December 19, 2024
Meanwhile, George Stephanopoulos, the ABC anchor whose habitual disinformation kick-started the whole mess, is reportedly reeling from Disney’s sudden decision. Rumors are swirling that he may exit the network soon, and one can’t help but imagine the internal drama at ABC News, where journalists seem to be throwing shade at their corporate leaders by leaking details of the fiasco. They must be feeling quite frosty toward the suits after that $15 million check written to a man they’d rather not have to talk about.
Yet, the speculation doesn’t stop there. With Dana Walden—close buddy of Vice President Kamala Harris—skating under the radar, it looks like her influence had a role in this whole decision too. Perhaps keeping the press arm of Disney afloat while maintaining party connections proved too tempting for the Disney boardroom.
As for the implications of this $15 million settlement, it’s a drop in the ocean for a company that raked in nearly $89 billion just last year. But the optics are everything. Disney’s choice to back off and settle indicates their recognition of the potential backlash from a protracted legal battle—not to mention the embarrassing tidbits regarding ABC News that might have been unearthed in the process. With a fresh Trump presidency just around the corner, it looks like Disney is holding onto its brand with all the fervor of a kid clutching their last Mickey Mouse ice cream bar.
