雅虎香港財經 Disney's battle with Ron DeSantis is finally over — here's how they got there
The feud between Disney (DIS) and Republican Florida Governor Ron DeSantis has reached its conclusion, with a $17 billion development plan set for Orlando's Walt Disney World Resort following a years-long battle over the company's special tax district.
The district, previously known as the Reedy Creek Improvement District (RCID), allowed Disney to operate as a self-governing entity since its inception; however, DeSantis seized control of the district last year following Disney's opposition to the state's so-called Don't Say Gay law. The law forbids instruction on sexual orientation and gender identity from kindergarten through third grade.
At the time of his board takeover, DeSantis removed Disney's hand-picked RCID board members and Florida lawmakers retroactively invalidated the agreement between Walt Disney World and the district. DeSantis then appointed five new people to call the shots and rebranded the district as the Central Florida Tourism Oversight District (CFTOD).
But Disney got what it wanted in the end: the ability to invest in its theme parks without interference from state or government politicians.
In a vote completed Wednesday night, the CFTOD unanimously approved a 15-year plan to expand Walt Disney World. The plan includes the flexibility for Disney to build a fifth theme park and other minor parks, like water parks, over time. The company can also expand retail and office space and add hotel rooms, among other properties and attractions.
In March, the entertainment giant and the state of Florida reached a settlement to end ongoing litigation over the special tax district. But a separate federal case between Disney and DeSantis still loomed in the background.
In February, Disney filed a notice of appeal after a federal judge dismissed its free speech case against the governor, determining the company's position ultimately "lacked standing," or the right to sue DeSantis and a separate government official.
But Wednesday's development agreement officially ended all litigation between the two sides.
Jeff Vahle, president of Walt Disney World, said the plan will “deliver even more memorable and extraordinary experiences for our guests.”
Meanwhile, Bryan Griffin, a spokesman for DeSantis’s office, said in a statement to Yahoo Finance, "Disney and the state of Florida continue working well together under CFTOD’s new governance structure, and we are pleased to see CFTOD and Disney reach a new development agreement that secures up to $17 billion in future investment in the state of Florida."
"This agreement is a big win for central Florida and will lead to numerous jobs and improved guest experiences."
Disney has previously said its investments will create 13,000 new jobs and "thousands of other indirect jobs that will attract more people to the state and generate more taxes."
At Wednesday night's board meeting, CFTOD member Brian Aungst added, "Walt Disney World is inextricably intertwined in the fabric of the state of Florida, and the success of Walt Disney World is the success of Central Florida and vice versa."
The high-profile Florida showdown has served as an overhang for Disney as it grappled with challenges that included a declining linear TV business, slower growth in its parks business, and losses in its streaming division. The company recently won its proxy battle against activist investor Nelson Peltz.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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