Disney sues Florida Gov. Ron Desantis over state's 'relentless campaign' to control theme parks

Walt Disney Co sued Florida Republican Governor Ron DeSantis on Wednesday, asking a court to overturn state efforts to exert control over the company's Walt Disney World theme parks in Orlando, intensifying a political battle between one of the largest U.S. companies and a potential White House contender.

The lawsuit marks the company's response to escalating efforts by DeSantis and his supporters to bring to heel Disney, which draws millions of visitors every year to its massive amusement parks, the first of which opened in 1971.

"The company is left with no choice but to file this lawsuit to protect its cast members, guests, and local development partners from a relentless campaign to weaponize government power against Disney in retaliation for expressing a political viewpoint unpopular with certain State officials," the company said in its lawsuit.

A DeSantis spokesperson called Disney's action "an unfortunate example of their hope to undermine the will of Florida voters."

"We are unaware of any legal right that a company has to operate its own government or maintain special privileges not held by other businesses in the state," DeSantis spokesperson Jeremy Redfern said on Twitter.

The lawsuit alleges that a newly formed DeSantis-appointed tourist board violated Disney's contract rights, and did so without just compensation and deprived it of due process. Disney also argues it was denied its First Amendment rights to free speech. The company is asking the court to declare Florida's legislative action unlawful.

The battle began last year after the company criticized a state law banning classroom discussion of sexuality and gender identity in schools.

Disney Chief Executive Bob Iger has called the retaliation against the company "anti-business" and "anti-Florida." The company employs roughly 75,000 people in the state.

DeSantis, who is seen as a likely candidate for the Republican 2024 presidential nomination, is currently traveling in Asia as part of a visit to several other countries.

Disney shares were up marginally on Wednesday afternoon.

State Republicans last year targeted Disney after it publicly clashed with DeSantis.

Florida lawmakers passed legislation that ended Disney's virtual autonomy in developing 25,000 acres in central Florida where its theme parks are located.

WATCH |DeSantis promises 'more to come' in fight with Disney:

DeSantis promises 'more to come' in fight with Disney

1 year ago

Duration 1:53

Florida's Republican governor, Ron DeSantis, took another swing at one of the biggest businesses in his state, Walt Disney World, as he makes campaign-like stops around the U.S. ahead of an expected run for president.

But before the takeover by DeSantis' appointees, Disney pushed through changes to the special tax district agreement that limit the board's action for decades.

Shortly before news of the lawsuit broke, Florida's new oversight board said Disney's plans for potential expansion of the Walt Disney World Resort did not comply with state law, and declared that agreement void.

The Central Florida Tourism Oversight Board unanimously supported an attorney's findings of legal flaws in the developers' agreement Disney reached in February with a previous board, including a lack of proper public notice.

"What our lawyers have told us is, factually and legally, what they created is an absolute legal mess," said board chairman Martin Garcia. "It will not work."

The tussle could boost DeSantis's support among U.S. Republican voters, a Reuters/Ipsos poll found, but also hurt him among the wider electorate.

Seventy-three percent of respondents including 82 per cent of Democrats and 63 per cent of Republicans said they were less likely to support a political candidate who backs laws designed to punish a company for its political or cultural stances.