Key Takeaways:
The escalating conflict between Donald Trump and Disney over a late-night joke is creating the first major political test for new CEO Josh D’Amaro, reviving concerns over corporate speech and presidential pressure.
The political pressure on Walt Disney Co. (DIS) is intensifying after former President Donald Trump on Monday demanded the firing of ABC host Jimmy Kimmel for a joke about Melania Trump. The call for termination, which followed a similar demand from the first lady, frames a joke from Kimmel’s April 23 show as a "despicable call to violence" just days before an assassination attempt at the White House Correspondents' Dinner.
"That type of rhetoric has led crazy people to believe crazy things, and they are inspired to commit violence because of those words," White House press secretary Karoline Leavitt said during a press briefing Monday, calling Kimmel's comments "completely deranged."
The controversy centers on a joke from Kimmel’s mock White House Correspondents’ Dinner monologue, where he said of the first lady, “you have a glow like an expectant widow.” In a post on X, Melania Trump called the monologue "hateful and violent rhetoric," while the former president wrote on Truth Social that Kimmel "should be immediately fired by Disney and ABC."
The standoff creates a significant challenge for Disney and its new Chief Executive Officer Josh D’Amaro, who took over from Bob Iger just six weeks ago. The situation echoes a similar event less than a year ago when ABC briefly suspended Kimmel under pressure from the Trump administration, raising questions for investors about the company's ability to navigate political risk without alienating its talent or a significant portion of its audience.
All eyes are on D’Amaro, who now faces his first major political controversy as CEO. While Disney, ABC, and representatives for Kimmel have so far remained silent, the decision-making will likely involve key executives who handled the previous incident, including Dana Walden, now D'Amaro's No. 2. In the prior event, Walden explained the suspension as an effort to “take the temperature down,” a strategy that ultimately angered both sides of the political spectrum. The company's response now will be a critical indicator of its strategy under new leadership.
This incident is almost a direct repeat of a controversy in September 2025. Then, Kimmel was suspended for a week after joking about the MAGA movement's reaction to the assassination of conservative activist Charlie Kirk. That suspension came after Trump-appointed FCC Chairman Brendan Carr publicly pressured ABC and at least two major affiliate owners, Nexstar and Sinclair, said they would preempt the show. ABC reversed its decision in less than a week after a public backlash, and Kimmel's anti-Trump commentary has only grown more prominent since. The current silence from Nexstar and Sinclair may give Disney more room to maneuver than it had in the 2025 incident.
This article is for informational purposes only and does not constitute investment advice.
