Photo-illustration by Newsweek/Getty/Kimmel Leaves Disney Facing 'Existential Crisis'
By Marni Rose McFall
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Jimmy Kimmel has left Disney facing an existential crisis, according to the journalist Bill Carter.
"I don't think they've ever faced anything like this," Carter told Matthew Belloni on a recent episode of The Town podcast. Asked if Disney is facing an existential crisis, he said "absolutely."
And what it is facing is "one of the toughest equations in modern media," according to Matt Navarra, the social media consultant and news personality, who spoke to Newsweek about the crisis facing both Disney and the media more broadly.
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Newsweek has contacted Disney via email for comment.
Why It Matters
ABC pulled Kimmel's late-night show off the air following comments the comedian made regarding the assassination of Charlie Kirk. Kirk, 31, was fatally shot during an event at Utah Valley University on September 10.
In a statement shared with various news outlets on Wednesday, a spokesperson for the Disney-owned broadcaster said: "Jimmy Kimmel Live will be preempted indefinitely."
Kimmel's suspension has drawn praise from allies and supporters of President Donald Trump, but has in turn been condemned by Democratic lawmakers and free expression advocates.
It comes after ABC had agreed to settle a $15 million defamation lawsuit in the president's favor in December.
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What To Know
Trump has previously been a critic of Disney, branding it a "woke and disgusting shadow of its former self" in a May 2023 social media post.
Disney has repeatedly faced accusations of being "woke," and it made changes to certain shows this year, including removing a transgender storyline and introducing a Christian character.
The canceling of Kimmel's show also has political implications, and comes shortly after the canceling of The Late Show With Stephen Colbert.
"First Colbert, now Kimmel. Last-minute settlements, secret side deals, multi-billion dollar mergers pending Donald Trump's approval," said Democratic Senator Elizabeth Warren. "Trump silencing free speech stifles our democracy."
During his Monday night monologue, Kimmel made remarks about Kirk's death and its aftermath. He had previously shared his condolences to Kirk's family on social media.
In his TV remarks, Kimmel suggested that MAGA supporters were attempting to capitalize on the murder and distance themselves from the alleged shooter, Tyler Robinson, and mocked Trump's response to a reporter's question on Kirk's death.
FCC Chairman Brendan Carr, who is a Trump ally and appointee, addressed Kimmel's remarks in a podcast episode with conservative commentator Benny Johnson. He called Kimmel's comments "some of the sickest conduct possible," before saying: "This is a very, very serious issue right now for Disney... We can do this the easy way or the hard way."
Carter outlined the Catch-22 situation facing Disney following this, during the podcast episode, "If it fires him, it will have caved, and nothing, it will have no way to stand up, and the creative community will react against it, and there's a huge domino effect from that. If it stands by him, it loses huge amounts of money, and there's a domino effect from that," he said.
Speaking to Newsweek, Navarra said: "Bob Iger is now balancing one of the toughest equations in modern media. Creative freedom versus political survival. Pulling Jimmy Kimmel off air isn't just a programming decision, it's a cultural signal.
"But, the problem is this: that short-term appeasement might buy a moment of peace with regulators or political factions, but it's at the cost of long-term trust from Disney's own talent and audiences.
"If the creative community sees Disney as a company that flinches when it's pressured by government, you risk an internal revolt, especially from writers and comedians, showrunners. The kind of voices that built ABC's reputation for cultural commentary."
The negative response from the creative community has already begun.
Damon Lindelof, creator of the popular show Lost, which aired on ABC for six seasons, pledged in an Instagram post that he would not work with Disney unless Kimmel is reinstated. "I can't in good conscience work for the company," he said.
And while the Kimmel news has hit the headlines with a major impact, Navarra said: "What we've seen here, it's played out before."
He pointed to Disney's previous public spat with Governor Ron DeSantis in the wake of Florida's so-called "don't say gay" legislation, which ultimately hurt Disney's standing with conservatives, as well as its bottom line.
"That same tension is repeating here," Navarra said.
Navarra added that "Disney has built an empire on brave storytelling, on creative storytelling."
But it's not a simple situation. "Iger knows that regulatory power is real, and the FCC broadcast licensing and pressure from affiliate networks all come into play," Navarra said, adding that Disney is "responding to real, tangible risk."
Newsweek also spoke with Rodney Benson, a professor in the Department of Media, Culture, and Communication and an affiliated faculty member of the Department of Sociology at New York University, about the broader implications for the media landscape.
"It's a major structural problem that so many major news media are owned by companies or individuals with outside businesses subject to government regulation. It creates conflicts of interest and vulnerabilities that are susceptible to just the kind of undue government pressure that we're seeing now," Benson said.
"This moment seems like it could be a turning point. Each time a media company folds under the pressure, it makes it harder for it and others to resist in the future. But this FCC has over-reached with its heavy-handed tactics. If Disney stands up, others may feel empowered, and there is at least a chance the courts will back them up," he added.
What People Are Saying
Matt Navarra told Newsweek via a voice message: "This is bigger than Kimmel. This is about what happens when political power and platform control collide. What we're seeing now is a dangerous test case... This is not about Jimmy Kimmel, it's about whether politicians can reach into a media schedule and pull the plug on dissent."
Kara Swisher, the journalist, told CNN: "I think a lot of journalists should focus on Bob Iger at ABC, someone who owns, who is running Disney, this will be a real tarnish on his reputation."
Rodney Benson, a professor in the Department of Media, Culture, and Communication and an affiliated faculty member of the Department of Sociology at New York University told Newsweek over email: "When a government uses threats to suppress unfavorable content, then you're facing the very real possibility of what the economists call 'media capture'. In a democracy, how can a news organization justify allowing itself to be captured by the government? The First Amendment is on their side and a company like Disney has the means to defend itself. It should steel itself for the fight, because it's not going to end here even if it backs down."
What Happens Next
Iger is currently looking to find a successor, following an unsuccessful retirement where he was replaced with Bob Chapek, before ultimately being reinstated as CEO in 2022. There are reportedly plans that he will retire in 2026.
As for where Disney goes next, Navarra told Newsweek: "I think that the smarter move for Disney isn't to cave quietly, it's to create clarity. It's to be transparent with audiences and talent about where the line is, what's acceptable, what's not, and why."
Update 09/22/25 03:30 a.m. ET: This article has been updated to include comment from Rodney Benson.
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