The suspension of Jimmy Kimmel’s late-night show has resulted in significant financial losses for Disney.
Recent events have led to the show being put on hold after Kimmel mentioned the assassination of Charlie Kirk during a broadcast. His remarks on how conservatives, including Donald Trump, reacted, sparked controversy.
ABC decided to suspend the show ‘indefinitely’ following the episode. While some viewers welcomed this decision due to Kimmel’s comments, others were less satisfied.
Disney had planned for the show’s return on September 23, but these plans have been disrupted as ABC affiliate companies have opted not to air it.
Sinclair Broadcasting Group, a major American media company that owns several ABC-affiliated stations, announced that despite Kimmel’s imminent comeback, they will not broadcast his latest episode.
In a recent statement, Sinclair declared that Jimmy Kimmel Live! would be replaced with news programming, and they are in ongoing discussions with ABC.
“Beginning Tuesday night, Sinclair will be preempting ‘Jimmy Kimmel Live!’ across our ABC affiliate stations and replacing it with news programming,” the broadcaster stated on social media.
“Discussions with ABC are ongoing as we evaluate the show’s potential return.”
This decision is expected to result in a significant loss of viewers for Jimmy Kimmel Live!, leading to both financial and credibility challenges for Disney, according to a brand expert.
Crystal Gorges told FOX Business: “ABC and Disney are already under a microscope with the FCC pressure being so public, so viewers can easily connect the dots and interpret a suspension as political compliance rather than a programming decision.”
Gorges noted that the real financial threat isn’t from advertisers leaving but from alienating loyal viewers who perceive it as censorship.
“Loyal viewers who tune in night after night, or who pay for Disney/ABC bundle subscriptions, could feel like their voices are being silenced,” he elaborated. “That sense of alienation can quickly snowball into organized opposition, social media movements, or even subscriber cancellations.”
What are the financial repercussions for Disney?
Market Watch reported that Disney’s stock has fallen by 2.31 percent over the past five days in response to Kimmel’s show’s cancellation. Al Jazeera highlighted that Walt Disney Co. lost nearly $5 billion in stock market value overnight due to reports of Kimmel’s show not airing on affiliate stations.
Gorges suggested that the financial losses reflect a diminishing trust in the company.
He explained that the long-term financial risk stems from the perception that Disney is yielding to external pressures, such as political influences.
Sinclair has also called for Kimmel to issue a direct apology to the Kirk family and make a meaningful personal donation to both the Kirk family and Turning Point USA following his comments about the individual accused of the political activist’s killing.
Disney has been approached for comment.