Walt Disney Co
This agreement concludes a contentious two-year standoff sparked by Disney's opposition to Florida's "Don't Say Gay" law, which restricts classroom discussions on gender identity and sexual orientation.
In retaliation, DeSantis and the state legislature moved to dissolve the Reedy Creek Improvement District, a Disney-controlled entity for over 50 years, replacing it with the Central Florida Tourism Oversight District under state control, the Variety reports.
The Central Florida Tourism Oversight District, which provides municipal services like firefighting and planning for the theme park, was previously under the influence of Disney supporters.
With the settlement, announced by Walt Disney World Resort President Jeff Vahle, a new phase of cooperation is anticipated between Disney and the district's new leadership appointed by DeSantis.
This change aims to foster significant investments, job creation, and economic opportunities in Florida.
The legal battle saw DeSantis and the Republican-controlled Florida Legislature appoint a new board to the district, challenging Disney's free speech rights.
Disney had responded by suing DeSantis and his appointees. The dispute intensified when Disney's board attempted to maintain control over design and construction by signing last-minute agreements before the change in governance.
These agreements were contested by the new board, leading to further legal actions.
Under the new settlement, Disney acknowledges the nullification of these previous agreements and plans to work with the new board on a new development agreement, paving the way for future collaboration and development plans, AP News reports.
In February, Disney reported first-quarter revenue of $23.5 billion, lagging the Street consensus of $23.6 billion. Adjusted EPS of $1.22 beat the Street consensus of $0.99.
The stock gained 26% in the last 12 months. Investors can gain exposure to the stock via AdvisorShares Gerber Kawasaki ETF
Price Actions: DIS shares are trading higher by 0.31% at $120.30 on the last check Wednesday.
