Entertainment giant Walt Disney Co. (DIS) is facing a potential boycott after the ABC television network that it owns indefinitely suspended the late night program Jimmy Kimmel Live!
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The Jimmy Kimmel program was effectively canceled after the comedian made comments related to the killing of conservative activist Charlie Kirk. In response, Brendan Carr, chair of the Federal Communications Commission (FCC) that oversees broadcast networks in the U.S., threatened regulatory consequences, leading ABC to cancel Jimmy Kimmel’s show.
The situation has drawn the anger of major Hollywood unions and progressive groups, each of which is accusing ABC and its affiliates of censorship and demanding a boycott of Disney properties, including the popular Disney+ streaming service. There is also a growing chorus on social media calling for a boycott of Disney products and services.
Merger Issue?
There are reports that ABC network affiliate Nexstar Media Group (NXST) influenced the decision to cancel Jimmy Kimmel Live! Nexstar is currently involved in a $6.2 billion merger with Tegna (TGNA), which requires approval from the FCC in order to proceed.
Hollywood’s most influential unions, including the Writers Guild of America and the SAG-AFTRA union that represents actors, have condemned the cancellation of Jimmy Kimmel, saying it threatens First Amendment free speech rights and the entire entertainment industry. Disney executives have not commented publicly on the Jimmy Kimmel cancelation.
Is DIS Stock a Buy?
The stock of Walt Disney Co. has a consensus Strong Buy rating among 22 Wall Street analysts. That rating is based on 19 Buy and three Hold recommendations issued in the last three months. The average DIS price target of $137 implies 18.67% upside from current levels.
