Walt Disney Co. (NYSE:DIS) is facing heightened regulatory scrutiny after the Federal Communications Commission (FCC) ordered an early review of licenses for its ABC stations, amid a growing feud involving President Donald Trump, late-night host Jimmy Kimmel, and the media giant.
The order, announced Tuesday by FCC Chairman Brendan Carr, requires Disney to file renewal applications years ahead of schedule as part of a broader probe into the company's diversity, equity and inclusion (DEI) policies.
It comes as Business Insider reported that newly installed CEO Josh D’Amaro has decided to keep sports network ESPN inside the company rather than pursue a spinoff.
FCC Escalates Pressure On Disney
The early review affects eight ABC-owned stations in major markets, including New York, Los Angeles and Chicago, with licenses otherwise not due for renewal until 2028-2031.
Carr linked the move to an investigation launched last year into whether Disney's DEI initiatives violate communications law.
Disney did not immediately respond to Benzinga‘s request for comment.
In a post on X, FCC Commissioner Anna Gomez called the move "unprecedented, unlawful, and going nowhere.”
Kimmel Feud Fuels Political Firestorm
The timing has intensified those questions. The FCC move came one day after Trump called on ABC to remove Kimmel after the host joked during a White House Correspondents’ Dinner monologue that First Lady Melania Trump had "a glow like an expectant widow."
Late Monday, Kimmel rejected accusations that the remark incited violence, calling it a "very light roast."
The timing of correspondence so close to Kimmel's latest fight with the Trump administration is "coincidental," a person familiar with the FCC's plans told the Wall Street Journal.
Kimmel’s show "Jimmy Kimmel Live!" was temporarily suspended in September following comments the host made after the killing of conservative activist Charlie Kirk.
ABC pulled the show for several days after ABC affiliate owners Nexstar Media Group (NASDAQ:NXST) and Sinclair (NASDAQ:SBGI) said they would stop carrying the show. However, Kimmel soon returned, and his contract was later extended through May 2027.
What's Next?
Disney has until May 28 to file its renewal applications, after which the FCC could decide whether to escalate the matter further.
The media giant’s stock closed down 0.86% at $101.47 on Tuesday, having lost about 9.3% so far this year.
According to Benzinga’s Edge Rankings, the stock has a strong growth rank, although price trends look weak in the medium and long term.
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