Walt Disney Co's (NYSE: DIS) dispute with Florida Governor Ron DeSantis continues to play out, as reports suggest the media giant has halted plans to move some California-based employees to the Sunshine State.
What Happened: Disney has pushed back its original itinerary of moving around 2,000 workers at its Parks, Experience, and Product division to its new campus in the Orlando community of Lake Nona, from the end of this year to 2026, the Hollywood Reporter reported, citing a Disney spokesperson's statement.
Many of these employees were reportedly Imagineering workers, involved in designing and engineering the theme parks and rides.
The company reportedly said that the delay has to do with its intention to provide some flexibility to the relocating employees, as the new campus is set to be completed only in 2026.
Disney had made the decision to shift to Florida to avail of $570 million in tax breaks promised by the state.
Related Link: Why This Analyst Thinks Disney And This Company Are Uniquely Positioned In The Media Space
A Political Decision? The delayed relocation is seen as the precipitation of the ongoing dispute between Disney and DeSantis.
It all started with Disney, under pressure from its employees, taking up cudgels against the state passing a law to ban discussing sexual orientation and gender in classrooms for children from kindergarten to the third grade. The law is widely known as the "Don't Say Gay" law.
The state retaliated, with the Republican legislators passing a bill to end Disney's "special purpose district" privilege by June 2023. This provision allows the company to self-govern in the land occupied by the "Walt Disney World Resort."
Price Action: Disney shares ended Wednesday's session 1.76% higher at $95.88, according to Benzinga Pro data.
