Disney shareholders are demanding answers about the company’s decision to suspend late night host Jimmy Kimmel.
The group, which includes the American Federation of Teachers and Reporters Without Borders, Inc., have penned a letter to Disney requesting that the media giant turn over any books and records related to the move, arguing the abrupt decision led to “significant declines” in the company’s stock.
The letter, which was first reported by Semafor and later obtained by TheWrap, is asking for any materials concerning Kimmel’s suspension, its actual or potential impact on company revenue, shareholder value, advertising revenue, or corporate reputation and any company policies procedures, or other practices regarding “politically sensitive programming decisions” around late-night content.
They’re also asking for emails between board members, including Disney CEO Bob Iger, communications between Disney and the federal government or political organizations and copies of Disney’s affiliate agreements with Nexstar and Sinclair. Additionally, they’re asking for any documents related to the financial, contractual or reputational impact of Nexstar and Sinclair’s decision to continue to preempt Jimmy Kimmel Live! indefinitely on their ABC affiliate stations and Donald Trump’s Truth Social post on Tuesday evening in which he suggested he would go after ABC and Disney for reinstating Kimmel.
“Although we are pleased that ABC did the right thing and put Jimmy Kimmel back on the air last night, due to the Trump administration’s continued threats to free speech, including with respect to ABC, we are writing to seek transparency into the initial decision to suspend him and his show,” the letter states. “There is a credible basis to suspect that the Board and executives may have breached their fiduciary duties of loyalty, care and good faith by placing improper political or affiliate considerations above the best interests of the Company and its stockholders.”
The letter notes that Disney will have five business days to share the documents before the group pursues all available remedies in order to compel them to. They are represented by Roberta Kaplan, who sued Donald Trump on behalf of E. Jean Carroll, Norman Eisen’s Democracy Defenders Fund and Christopher Clark of Clark, Smith Villazor LLP.
Representatives for Disney did not immediately return TheWrap’s request for comment.
ABC’s decision to pull “Jimmy Kimmel Live!” indefinitely last week came after the host was pulled from Nexstar and Sinclair’s stations for comments made about Charlie Kirk’s alleged assassin.
Disney and ABC’s move triggered protests from writers and union members, calls to cancel Disney+, Hulu and ESPN+ subscriptions, and an open letter from the American Civil Liberties Union signed by over 400 artists condemning the suspension.
In a statement on Monday, Disney said it pulled Kimmel to “avoid further inflaming a tense situation at an emotional moment for our country,” adding that some of his comments were “ill-timed and thus insensitive.” But after “thoughtful conversations” with Kimmel, a decision was reached for “Jimmy Kimmel Live!” to return on Tuesday.
Despite Kimmel’s return to ABC, which drew a total of 6.26 million viewers on broadcast, both Nexstar and Sinclair refused to bring Kimmel back Tuesday evening and the show remains dark on their stations as conversations between them and Disney remain ongoing.
Nexstar, which has more than 200 owned or partner stations in 116 U.S. markets reaching 220 million people, owns 23 ABC affiliate stations and partners with nine other stations. Meanwhile, Sinclair has nearly 40 ABC affiliate stations.
Disney stock closed at $113.43 apiece on Wednesday, up 1.04%. Shares of the media giant are down 1.25% in the past five days and 3.64% in the past month, but are up 13.2% in the past six months, 2.36% year to date and 21.07% in the past five years.
