In the six weeks since Josh D’Amaro took over Disney, the setbacks have been nearly nonstop.
OpenAI discontinued its text-to-video tool, Sora, nullifying a $1 billion deal with Disney. A major video game maker faltered, clouding a partnership that Disney is counting on for growth. “The Bachelorette,” on Disney-owned ABC, imploded amid a scandal involving its star. Next, Mr. D’Amaro announced layoffs related to companywide cutbacks in marketing.
But now Hollywood’s newest chief executive has been confronted with a genuine emergency, one that could color his tenure: guiding Disney through a political crisis with President Trump.
Federal regulators on Tuesday ordered a review of all station licenses owned by ABC. The Federal Communications Commission said in a filing that the review was related to an investigation into ABC’s diversity and inclusion policies, but it arrived after Mr. Trump demanded that the network fire its late-night host, Jimmy Kimmel.
The federal government had never before ordered such a sweeping review of a major television network’s licenses, which allow the companies to broadcast in local markets. If the F.C.C. decides to block the renewal of ABC’s station licenses, the network will have ample recourse in the courts.
Disney would most likely win a court battle: The legal standard for denying a license renewal is almost insurmountable, independent media lawyers said. But Disney could find itself locked into months, if not years, of expensive legal wrangling with the federal government.
“It’s highly unusual for a new C.E.O. to be given such a huge test so early on,” said Jeffrey Sonnenfeld, president of Yale’s Chief Executive Leadership Institute, who recently published a book about Mr. Trump’s leadership style. “It’s a burden, but it could also be hugely valuable. Josh is now going to see who he can trust on the inside, who understands how he wants to operate.”
Disney owns only eight of the more than 200 local stations that carry ABC programming. But Disney’s stations are the backbone of the network because they cover the biggest markets, including New York, Los Angeles, Chicago, Philadelphia, Houston and San Francisco.
Disney declined to make Mr. D’Amaro available for an interview. In a statement, the company said it was “confident” that its stations operated in “full compliance” with F.C.C. rules.
“Our record demonstrates our continued qualifications as licensees under the Communications Act and the First Amendment,” Disney said, adding that it was prepared to defend itself “through the appropriate legal channels.”
James P. Gorman, the chairman of Disney’s board, said at a conference in Norway on Tuesday that he was confident in Mr. D’Amaro’s ability to steer the company through the crisis.
“He’s world class, so I’m sure he’ll rise to the occasion and do what the right thing is,” he said, noting that Mr. D’Amaro would be “guided by the board.” (Mr. Gorman was responding to a question about Mr. Trump’s comments about Mr. Kimmel. The F.C.C. subsequently ordered its review.)
Before becoming chief executive, Mr. D’Amaro spent his entire career on the experiences side of Disney’s business: theme parks, resorts, cruise ships. So the situation with Mr. Kimmel and Mr. Trump is new terrain. Navigating it will require Mr. D’Amaro to lean on his newly installed senior leadership team — notably Dana Walden, Disney’s president, who played a key role in defusing a similar fight between Mr. Kimmel and conservatives in September.
Mr. D’Amaro and Ms. Walden were rivals for the top job, and Disney’s board created a new position to entice Ms. Walden to remain at the company. Now the two must share a foxhole.
Mr. D’Amaro need only look to Disney’s recent leadership history for an example of how much is at stake. Soon after Bob Chapek took over the company in 2020, he got into a heated political dispute with Gov. Ron DeSantis of Florida over legislation known as “Don’t Say Gay.” Mr. Chapek’s handling of the situation set off a political firestorm, with right-wing figures railing against “woke Disney.” The matter contributed to his firing in 2022. (Robert A. Iger came out of retirement to retake Disney’s helm and stayed until Mr. D’Amaro took over.)
There are no signs that Disney intends to fire Mr. Kimmel. In fact, the fledgling chief executive sent the opposite message on Monday.
Earlier in the day, Mr. Trump and the first lady, Melania Trump, said Mr. Kimmel should be fired for a joke he made on “Jimmy Kimmel Live!” last Thursday. The host pretended to be the M.C. of the upcoming White House Correspondents’ Association dinner and, addressing a faux Mrs. Trump, said she had the “glow” of an “expectant widow.”
On Saturday, the dinner was canceled after a man carrying deadly weapons breached security outside the Washington hotel ballroom where the event was taking place. A 31-year-old suspect has been charged with trying to assassinate Mr. Trump.
Mrs. Trump said on Monday that Mr. Kimmel “shouldn’t have the opportunity to enter our homes each evening to spread hate.” But instead of pulling him off the air or pushing him to apologize, Mr. D’Amaro allowed the comedian to host his show as normal.
“It was a very light roast joke about the fact that he’s almost 80 and she’s younger than I am,” Mr. Kimmel said in his monologue. “It was not by any stretch of the definition a call to assassination, and they know that.”
In the coming months, Mr. D’Amaro will also have to wrestle with questions that go well beyond “Jimmy Kimmel Live!” Some analysts have wondered if Disney’s television operations, which include several cable networks, make sense in the age of streaming.
“It will be very interesting to see how Josh navigates this — does he show a willingness to confront some really tough decisions,” said Rich Greenfield, a founder of LightShed Partners, a research firm. “I hope this catalyzes deeper discussions about what assets are critical to the Walt Disney Company and what assets are tertiary. Late-night television does not make money for Disney. Why are they even in that business?”
