In the six weeks since Josh D’Amaro took over Disney, the setbacks have been almost incessant.
OpenAI has abandoned its text-to-video conversion tool, Sora, canceling a billion-dollar deal with Disney. A major video game maker has faltered, clouding a partnership that Disney relies on for growth. “The Bachelorette,” on Disney-owned ABC, imploded amid a scandal involving its star. Then Mr. D’Amaro announced layoffs related to company-wide marketing cutbacks.
But now Hollywood’s new CEO is faced with a real emergency, which could influence his mandate: guiding Disney through a political crisis with President Trump.
Federal regulators on Tuesday ordered a review of all station licenses held by ABC. The Federal Communications Commission said in a document that the review was related to an investigation into ABC’s diversity and inclusion policies, but it came after Mr. Trump demanded that the network fire its late-night host, Jimmy Kimmel.
The federal government has never before ordered such a sweeping review of a major television network’s licenses, which allow companies to broadcast in local markets. If the FCC decides to block the renewal of ABC stations’ licenses, the network will have plenty of recourse in court.
Disney would most likely win a court battle: The legal standard for denying a license renewal is nearly insurmountable, independent media lawyers said. But Disney could find itself stuck in months, if not years, of costly legal wrangling with the federal government.
“It is very unusual for a new CEO to be subjected to such a significant test so soon,” said Jeffrey Sonnenfeld, president of the Chief Executive Leadership Institute at Yale, who recently published a book on Mr. Trump’s leadership style. “It’s a burden, but it could also be extremely valuable. Josh will now see who he can trust inside, who understands how he wants to operate.”
Disney owns only eight of the more than 200 local stations broadcasting ABC programming. But Disney stations are the backbone of the network because they cover the largest markets, including New York, Los Angeles, Chicago, Philadelphia, Houston and San Francisco.
Disney declined to make Mr. D’Amaro available for an interview. In a statement, the company said it was “confident” that its stations were operating in “full compliance” with FCC rules.
“Our record demonstrates our continued qualification as a licensee under the Communications Act and the First Amendment,” Disney said, adding that it was prepared to defend itself “through appropriate legal channels.”
James P. Gorman, Disney’s chairman, said at a conference in Norway on Tuesday that he was confident in Mr. D’Amaro’s ability to lead the company through the crisis.
“He’s world class, so I’m confident he will rise to the occasion and do what’s right,” he said, noting that Mr. D’Amaro would be “guided by the board.” (Mr. Gorman was responding to a question about Mr. Trump’s comments about Mr. Kimmel. The FCC later ordered a review.)
Before becoming CEO, Mr. D’Amaro spent his entire career in the experiences business at Disney: theme parks, resorts, cruise ships. The situation with Mr. Kimmel and Mr. Trump is therefore new territory. To achieve this, Mr. D’Amaro will need to rely on his new senior management team, including Dana Walden, Disney’s chairman, who played a key role in defusing a similar fight between Mr. Kimmel and conservatives in September.
Mr. D’Amaro and Ms. Walden were rivals for the top job, and Disney’s board created a new position to entice Ms. Walden to stay with the company. Now the two must share a burrow.
Mr. D’Amaro need only look to the recent history of Disney leadership for an example of just how high the stakes are. Shortly after Bob Chapek took over the company in 2020, he found himself in a heated political conflict with Governor Ron DeSantis of Florida over legislation known as “Don’t Say Gay.” Mr Chapek’s handling of the situation has sparked a political storm, with right-wing figures railing against the “Disney revival”. The affair contributed to his firing in 2022. (Robert A. Iger came out of retirement to take over as CEO of Disney and remained there until Mr. D’Amaro took over.)
There is no indication that Disney intends to fire Mr. Kimmel. In fact, the new general manager sent the opposite message on Monday.
Earlier in the day, Mr. Trump and the first lady, Melania Trump, said Mr. Kimmel should be fired for a joke he made on “Jimmy Kimmel Live!” last Thursday. The host pretended to be the master of ceremonies at the upcoming White House Correspondents’ Association dinner and, addressing a fake Mrs. Trump, said she had the “glow” of a “future widow.”
On Saturday, the dinner was canceled after a man carrying deadly weapons breached security outside the Washington Hotel ballroom where the event was taking place. A 31-year-old suspect has been charged with attempting to assassinate Mr. Trump.
Ms. Trump said Monday that Mr. Kimmel “should not have the opportunity to come into our homes every night to spread hate.” But instead of removing him from the airwaves or forcing him to apologize, Mr. D’Amaro allowed the comedian to host his show normally.
“It was a very light joke about the fact that he’s almost 80 and she’s younger than me,” Mr. Kimmel said in his monologue. “This was in no way a call for assassination, and they know it. »
In the months to come, Mr. D’Amaro will also have to grapple with questions that go far beyond “Jimmy Kimmel Live!” » Some analysts question whether Disney’s television business, which includes several cable networks, makes sense in the streaming era.
“It will be very interesting to see how Josh handles this situation — does he show a willingness to face some really tough decisions,” said Rich Greenfield, founder of LightShed Partners, a research firm. “I hope this sparks further discussion about which assets are core to the Walt Disney Company and which are tertiary. Late night television doesn’t make money for Disney. Why are they even in this business?”
