In a significant development, Disney (NYSE:DIS) and Florida Governor Ron DeSantis (R-Fla.) have settled their longstanding disagreement, enabling Disney to proceed with its 15-year expansion plan for the Walt Disney World Resort near Orlando.
What Happened: Under the new agreement with the Central Florida Tourism Oversight District, Disney has pledged to invest a minimum of $8 billion in the resort over the next decade, with a total of $17 billion to be invested over 10 to 20 years, Reuters reported on Thursday. The deal also includes an expansion of an affordable housing initiative and a commitment that at least 50% of total spending in the expansion will benefit Florida businesses.
The agreement also allows Disney to build a fifth theme park, expand retail and office space, and add approximately 14,000 hotel rooms, raising the resort's total to nearly 54,000. Disney President Jeff Vahle stated the new agreement "paves the way for us to invest billions of dollars in Walt Disney World Resort".
Why It Matters: The resolution of the dispute between Disney and Governor DeSantis marks a significant shift in their relationship. The feud began when Disney opposed Florida's "Don't Say Gay" law, leading to a series of retaliatory actions by the state government.
Additionally, the feud had broader implications for Disney's business strategy. Governor DeSantis had publicly criticized Disney's leadership, attributing the company's struggles to its "woke" policies and comparing it to the backlash faced by Bud Light over a controversial promotion.
Governor DeSantis's "war on woke" policies had previously led to Disney canceling a $1 billion investment in Florida, causing a downturn in tourism and local business struggles. This new agreement could potentially reverse some of those negative economic impacts.
In March, Disney and the Florida government settled their legal disputes, which had included the dissolution of the Reedy Creek Improvement District, a Disney-controlled entity for over 50 years, and its replacement with the Central Florida Tourism Oversight District under state control.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari