Disney Acknowledges that its Left-Wing Political Views Have Affected Shareholders

The father of capitalism, Adam Smith, brought us capitalism, bringing the “invisible hand” of free market to the world 300 years ago, and Disney is now admitting it has been slapped by the hand in a pushback on its political and social agenda, legal expert Jonathan Turley wrote in an op-ed for The Hill on Saturday.

“In recent filings, Disney appears to acknowledge that Smith’s invisible hand is giving the ‘House of Mouse’ the middle finger,” Turley wrote. “In a new corporate disclosure, Disney acknowledges that its controversial political and social agenda is costing the company and shareholders.”

Turley pointed to Disney’s SEC filing this week that acknowledged some mistakes leading to losses potential stretching into billions with pair of statements listed in bold:

“We face risks relating to misalignment with public and consumer tastes and preferences for entertainment, travel and consumer products, which impact demand for our entertainment offerings and products and the profitability of any of our businesses.”

“We face risks related to changes in our business strategy or restructuring of our businesses, which have affected and may continue to affect our cost structure, the profitability of our businesses or the value of our assets.”

Disney was forced to admit “consumer acceptance” is going impact its bottom line.

“Generally, our revenues and profitability are adversely impacted when our entertainment offerings and products, as well as our methods to make our offerings and products available to consumers, do not achieve sufficient consumer acceptance,” the filing read. “Further, consumers’ perceptions of our position on matters of public interest, including our efforts to achieve certain of our environmental and social goals, often differ widely and present risks to our reputation and brands.”

Disney’s battle with Florida under Gov. Ron DeSantis on the Parental Rights in Education Law potential sought to appeal to the masses, but might have alienated half of its consumers, according to Turley.

Also, he added, Disney potential lost $1 billion on “recent ‘woke’ movie flops.”

“Disney’s products are now viewed by many conservatives as empty virtue signaling and endless attempts to indoctrinate children,” Turley wrote. “Moreover, when the company publicly declares its opposition to a popular parental rights bill in Florida, it is moving away from a commercial to a political focus.

“That is the problem with the invisible hand. You can bring movies to the public, but you cannot make them sell. Once an unassailable and uniting brand, Disney brand is now negatively associated with activism by a significant number of consumers.”

Disney can absorb losses in the name of activism, but returning CEO Bob Iger “now appears to be seeking to ‘quiet things down’ after years of culture wars,” Turley noted.

“Iger has come to accept that a company does indeed have to sell products to survive,” he concluded.

Disney continues to struggle to make its streaming business profitable. Cord-cutting has also taken a toll, with ESPN shrinking to 71 million households from 74 million in fiscal 2022.

Since Disney took on DeSantis, the company has lost billions as customers have been turning off Disney+ and Hulu. In March 2021, the company’s market cap was roughly $358 billion. Today, it is roughly $155 billion.

Eric Mack |

Eric Mack has been a writer and editor at Newsmax since 2016. He is a 1998 Syracuse University journalism graduate and a New York Press Association award-winning writer.

© 2023 Newsmax. All rights reserved.

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