State governments usually work to support the key businesses operating in their states.
That manifests in a lot of different ways, but it includes things like building roads and infrastructure to ease access to a new office building or factory.
You rarely see a governor threatening a company that brings billions of dollars in taxes to the state while it employs tens of thousands of people at well above the state's minimum wage.
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That, of course, is what's happening in Florida, where Gov. Ron DeSantis has made Walt Disney (DIS) -) one of his top targets. The right-wing candidate for the Republican presidential nomination has held Disney up as a symbol of his self-named War on Woke.
He could have picked Starbucks or Target -- both have large presences in his state and are often considered progressive by right-leaning people -- but he chose Disney. DeSantis made the Mouse House a target after its former chief executive, Bob Chapek, spoke out against the governor's so-called Don't Say Gay legislation.
That led to DeSantis dissolving Disney's Reedy Creek Improvement District, the body which governs the land Disney World sits on, and replacing it with a board of handpicked cronies. Disney has sued over the issue and the state has countersued with the battle likely to go on for months before the courts intervene.
Now, after Disney CEO Bob Iger, during Disney's second-quarter-earnings call, gave a fiery speech basically asking DeSantis whether Florida wants his company's investment, the company made a more subtle move. That effort was outlined in a Securities and Exchange Commission filing along with its third-quarter earnings report.
It's not as bold as Iger canceling the company's planned $1 billion headquarters near Disney World, but it does put DeSantis in some horrible company.
Disney issues a Florida warning
Every public company issues a long statement warning about things that might go wrong and could hurt its business. Many of these are related to weather or acts of God, but some involve specific political situations. In this case, Disney sees a material need to warn investors about the operating climate in Florida.
"In Florida, steps directed at the company (including the passage of legislation) have been taken and future actions have been threatened, which collectively could negatively impact (and may have already impacted) our ability to execute on our business strategy, our costs and the profitability of our operations in Florida," the company said in an SEC filing.
Disney offers similar language on countries including Russia and China, which are run by dictators.
Disney World's business has slowed
In its earnings news release, Disney said business at Disney World was down in the quarter.
"Lower operating income at our domestic parks and resorts was attributable to a decrease at Walt Disney World Resort, while results at Disneyland Resort were up modestly compared to the prior-year quarter," the company reported.
Disney did not openly blame DeSantis for the slowdown, and factors including higher-than-normal temperatures, inflated airfare costs, and the country's general economic uncertainty likely played roles.
"The decrease at Walt Disney World Resort was primarily due to higher costs and lower volumes. The increase in costs was attributable to inflation and accelerated depreciation related to the planned closure of 'Star Wars: Galactic Starcruiser.' Lower volumes were due to decreases in occupied room nights and attendance," Disney said.
