Disney has lost $50 billion in value since the start of the war with Florida

DrIsney’s stock has lost nearly $50 billion in value since the beginning of March, when it took a political adventure to oppose Florida’s controversial new education law.

Disney stock is down more than 2% on Friday and down more than 8.5% over the past few days as Florida lawmakers work to penalize the company for wading through state policy. The stock’s market value has fallen by about $46.6 billion since March 1, just days before the company went out against the legislation.

The public rift between Republican lawmakers and Disney has recently been front and center in the battle over the Parental Rights to Education bill, which opponents have dubbed the “Don’t Say Like Me” bill.

Initially, Disney didn’t take a position on the legislation, which would ban the teaching of sexual orientation and gender identity in classrooms through third grade, but under pressure from investors and employees, the company relented and came out in strong opposition to the legislation. Moreover, Disney CEO Bob Chuck said that his company will end political donations in the Sunshine State.

Florida Senate passes bill calling for Disney World autonomy

Now Republican lawmakers are retaliating.

The Senate passed the GOP leadership this week, by 23 to 16 votes legislation This will dismantle the Reedy Creek Improvement District, which allows Disney to oversee zoning, infrastructure, laws and policing in the area around its parks. The state assembly also voted in favor of it by 70 to 38 votes.

The legislation dissolves special areas created prior to 1968 (Reddy Creek was incorporated in 1967). Thomas Smith, professor of finance at the University of Florida Gulf Coast, noted that there is no precedent for Florida to back off from a large private area like Reddy Creek and that the change is causing significant business uncertainty.

Florida Governor Ron DeSantis’ office has confirmed that the Reddy Creek area offers unfair Disney business benefits.

“Private areas in some cases show favouritism,” the office said. Washington Examiner In a statement this week. “Should the company operate as a regulator and a business at the same time? Should the company avoid standard environmental permit processes? Should the company engage in the eminent domain? Other companies do not get these privileges.”

Smith said to Washington Examiner That the Republican move could have unintended consequences for taxpayers and a chilling effect on business investment in the Sunshine State.

Reddy Creek reportedly has bond commitments of between $1 billion and $1.7 billion. If resolved, those commitments will likely be transferred to nearby Osceola and Orange counties, according to CNBC.

“Reddy Creek’s debt service alone is over $1 billion,” Democratic Senator Gary Farmer told CNN. “This bill does not stipulate how debt service will be assumed. Local government entities must collect the assets and liabilities of any dissolved Special Area.”

Reedy Creek’s self-government services are primarily paid for by the self-taxing Disney company, with the county raising an estimated $105 million annually. If Reddy Creek were to be taken over by neighboring counties, they would likely end up compensating for the loss of revenue needed to fund local services in the Special Territory.

“For me, the big problem here is that no one knows the financial ramifications,” Smith said, noting that taxpayers may end up footing the bill.

Republican sponsors of the legislation acknowledged that significant questions remain about the legal and financial implications of the legislation, but argued that logistics could be prepared over the coming months.

Smith said he doesn’t think the Republican decision to target Disney sets a good tone for the state, which promotes business-friendly goodwill. Smith said that while he doesn’t think it’s good corporate policy to delve into hot social and political issues like Disney, the move by the state legislature could scare away business investment in the state.

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“It can discourage other companies, in particular [those] in the high-tech field. “That might give them pause to see if they want to be here or not,” Smith said, adding that if the Democrats return to power, Disney’s precedent could lead them to retaliate in kind against the companies’ conservative advocacy.

“Now that Pandora’s Box is open, we can easily see a Democratic administration targeting someone, so I don’t think that’s good for the state,” he said.