DIsney is reportedly in the crosshairs of the Federal Communications Commission over its controversial diversity, equity and inclusion policies as the federal agency continues a clampdown on the “woke” initiatives.
FCC chair Brendan Carr said he’s putting the “finishing touches” on a letter to the Mouse House, which has been criticized for its DEI efforts, according to an interview he gave to Punchbowl News.
Carr declined to reveal which specific policies he would probe but said that the letter would include similar concerns that he recently raised with Comcast and Verizon.
He added that he was concerned with “whether they’re engaged in any of this sort of DEI discrimination that could run afoul of our EEO [equal employment opportunity] rules or potentially our public interest standard.”
“We’re going to get to the bottom of everything that is ongoing here and stay tuned on that one,” he said during Thursday’s sitdown.
Disney and the FCC did not immediately return requests for comment.
Disney shares were down more than 2% on Friday.
The stock has tanked nearly 17% in the past year and 9% year to date.
The move comes after Carr penned a letter to Disney Chief Executive Bob Iger in December, warning him that he would be monitoring the media giant’s carriage negotiations with local broadcast TV stations.
In that letter, Carr accused Disney’s broadcast network ABC of “attempting to extract onerous financial and operational concessions from local broadcast TV stations under the threat of terminating long-held affiliations, which could result in blackouts and other harms to local consumers of broadcast news and content.”
The FCC also reinstated a “news distorion” complaint against ABC affiliate WPVI-TV over the network’s fact-checking of Donald Trump during a presidential debate.
During the Punchbowl interview, Carr also echoed his previous threat to block mergers & acquisition for any company that embraces DEI policies.
“Any company that wants to get a transaction approved by the FCC, we have to make a finding that approving the transaction will serve the public interest,” he said. “I have a hard time seeing a path forward for a company that’s promoting these invidious forms of DEI discrimination for the FCC to get a yes.”
“And so what I’ve suggested to regulated companies — not just ones that are looking to do deals before the FCC but all businesses regulated by the FCC — is I suggest that they get busy ending their promotion of DEI,” he continued. “If any particular business is not sure whether that applies to them, they should let me or my office know.” Like Verizon, like Comcast, we’ll send them a letter and let them know exactly what we have in mind.”
Disney previously said it would end its “Reimagine Tomorrow” initiative, a DEI policy that was aimed at promoting stories from underrepresented groups.
Earlier this week, Disney’s shareholders voted to reject a proposal that would’ve ended Disney’s involvement in the Human Rights Campaign’s Corporate Equality Index at its annual meeting, according to The Wrap.
The Index is a survey that measures corporate policies and practices related to LGBTQ+ workplace equality.
Disney’s board recommended against the proposal and its shareholders overwhelmingly agreed, with only 1% voting in favor, according to a preliminary tally.
In December, Disney-owned ABC News settled a defamation lawsuit brought by President Trump, shelling out $15 million toward a presidential library.