Walt Disney Co is suing Florida Republican governor Ron DeSantis, asking a court to overturn state efforts to exert control over the company's Walt Disney World theme parks in Orlando.
The action comes as the oversight board Mr DeSantis appointed to oversee development in and around Walt Disney World in central Florida endorsed a legal opinion that declared as void an agreement that laid the foundation for billions of dollars in future development of the theme park.
"The company is left with no choice but to file this lawsuit to protect its cast members, guests, and local development partners from a relentless campaign to weaponise government power against Disney in retaliation for expressing a political viewpoint unpopular with certain state officials," the company said in its lawsuit.
The ongoing effort by Mr DeSantis and his supporters to exert control over Disney began last year after the company criticised a state law banning classroom discussion of sexuality and gender identity in schools.
"We are unaware of any legal right that a company has to operate its own government or maintain special privileges," Mr DeSantis spokesman Jeremy Redfern said on Twitter.
The governor is currently traveling in Asia on a four-country trade mission.
Disney shares fell 1.4% to close at $96.61 on the New York Stock Exchange today.
Disney Chief Executive Bob Iger has called the retaliation against the company "anti-business" and "anti-Florida". The company employs roughly 75,000 people in the state.
State Republicans last year targeted Disney after it publicly clashed with Mr DeSantis, widely considered a 2024 presidential candidate.
Florida lawmakers passed legislation that ended Disney's virtual autonomy in developing 25,000 acres in central Florida where its theme parks are located.
But before the takeover by Mr DeSantis' appointees, Disney pushed through changes to the special tax district agreement that limit the board's action for decades.
The tussle could boost Mr DeSantis' support among US Republican voters, a Reuters/Ipsos poll found, but also hurt him among the wider electorate.
73% of respondents - including 82% of Democrats and 63% of Republicans - said they were less likely to support a political candidate who backs laws designed to punish a company for its political or cultural stances.
