Texan Senator Ted Cruz said entertainment giant Disney is prioritizing “wokeness” over profits, citing a Security and Exchange Commission (SEC) report as evidence. In its annual SEC report, Disney admitted to investors that its revenue had been “adversely impacted” by its political posturing, and its “efforts to achieve certain of our environmental and social goals” came with risks to its reputation.
Cruz described the admission as one of the “most stunning corporate disclosures I’ve ever read.” He added that it indicates Disney was forced to confess because its financial situation was so bad it had to own up. Cruz stated that being upfront about it will give less cause for investors to sue because Disney can say, “No, no, sorry, you invested, and we told you upfront.”
Earlier this year, the Disney corporation announced thousands of job losses and acknowledged it lost more than 2 million subscribers to its streaming service, Disney +. The subscriber loss was partly attributed to “woke” content, including a children’s cartoon denouncing Abraham Lincoln and discussing “white fragility.”
The past couple of years have also seen significant box office failures for Disney, including the “Toy Story” spin-off “Lightyear,” which was expected to do well but incurred a loss of $100 million. The movie featured a gay kiss that had initially been cut but was then restored after Floridian Governor Ron DeSantis passed the so-called “Don’t Say Gay” bill. A later film, “Strange World,” portrayed a gay teenage crush and lost more than $100 million, while “Elemental,” which described the experience of immigrants, also bombed.
When DeSantis passed the Parental Rights in Education Bill – which disallows discussion about adult issues with young kids in schools – Disney declared war on the Governor, who subsequently ended the corporation’s autonomous status. The Floridian did not, however, receive the support of his fellow Republicans, who openly said he had made a mistake. Donald Trump, for example, said DeSantis was “being destroyed by Disney.”