M&A Approval Process Explained by FCC Chair in Deal Dispatch
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 19 2025
0mins
Should l Buy DIS?
Source: Benzinga
Cancellation of Late-Night Show: The cancellation of "Jimmy Kimmel Live" has sparked tensions between major corporations and regulators, particularly involving the FCC and Disney's compliance with public interest obligations related to political satire.
Corporate Maneuvering: Disney, Sinclair, and Nexstar are engaged in strategic actions to secure regulatory approvals for significant mergers and acquisitions, while also responding to political pressures regarding content and satire.
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Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 105.440
Low
123.00
Averages
137.29
High
152.00
Current: 105.440
Low
123.00
Averages
137.29
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Escalating Legal Threats: Netflix's litigation director, Mindy LeMoine, described Seedance 2.0 as a high-speed piracy engine that generates unauthorized derivative works, showcasing the company's aggressive stance on IP protection, which could lead to a legal confrontation with ByteDance.
- Industry Response: Concerns among media companies regarding AI videos are intensifying, with Warner Bros. also warning ByteDance, highlighting the urgent need for regulatory measures on AI tools, potentially prompting more companies to take legal action to safeguard their characters and brands.
- Future Outlook: While ByteDance has pledged to enhance video oversight, Netflix and other media companies may continue to pressure for stricter copyright protections, and failure to meet these demands could result in more severe legal consequences for ByteDance.
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- Free Speech Concerns: FCC Commissioner Anna Gomez criticized Paramount for allegedly yielding to political pressure by not airing an interview with Texas Senate candidate James Talarico, labeling it a troubling example of corporate capitulation, and emphasized that the FCC lacks authority to pressure broadcasters for political reasons, which could chill free expression.
- CBS Legal Block: On 'The Late Show,' host Stephen Colbert revealed that CBS lawyers informed him he could not air Talarico's interview or even mention the prohibition, indicating that Paramount may be reluctant to antagonize FCC Chair Brendan Carr, who has suggested revisiting rules that exempt talk shows from equal-time requirements for political candidates.
- Equal-Time Review: The FCC is reviewing whether ABC's 'The View,' owned by Walt Disney Co., violated equal-time rules after Talarico appeared on the program, highlighting an intensifying scrutiny of media exposure for political candidates by regulatory bodies.
- Stock Price Movement: Despite facing political pressure, Paramount's shares rose by 4.94% during Tuesday's regular session and an additional 0.50% in after-hours trading, reflecting market optimism about its short-term performance, although it continues to show a downward trend in the long term.
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- Show Blocked: Colbert accused CBS of blocking his broadcast of Texas Rep. Talarico's interview, labeling CBS's statement as 'crap' and urging the network to stand up against 'bullies' in the Trump administration.
- Legal Intervention: CBS lawyers informed Colbert that airing the interview could violate new FCC guidelines requiring adherence to the equal time provision, resulting in the show's inability to air as planned.
- Social Media Impact: Despite the interview not airing on television, the video garnered over 4.4 million views on YouTube, indicating significant public interest and support for Talarico, which could influence the outcome of the Texas Democratic primary.
- Political Context: This incident occurs amid Paramount's hostile bid for Warner Bros. Discovery, potentially affecting the company's relationship with the Trump administration and its political stance in Texas.
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- Travel Predictions: Preliminary figures indicate that Beijing is expected to see 110 million trips during the Lunar New Year, with a staggering 9.5 billion trips nationwide, reflecting a strong desire for new experiences among China's 1.4 billion population and signaling economic recovery.
- Tourism Resurgence: Xishuangbanna reported over 4 million visits and tourism revenue of 5.04 billion yuan (approximately $730 million) during the holiday, demonstrating the resilience of local tourism markets in attracting visitors despite economic challenges.
- Theme Park Launch: iQiyi opened its first theme park in Yangzhou, featuring virtual reality and live performances to meet the rising demand for offline entertainment, positioning it as a new growth driver for the company amid fierce competition in the streaming market.
- Luxury Market Trends: Despite retail sales in China growing only 0.9% in December, Louis Vuitton opened two new stores in the past year, emphasizing the use of social media and celebrity endorsements to attract consumers, showcasing the resilience of luxury brands during the festive shopping season.
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- Restaurant Tech Investment: The firm also boosted its stake in restaurant technology platform Toast by 4,618,077 shares, bringing its total to 8,015,277 shares, highlighting its belief in the digital transformation potential of the food service industry.
- Emerging Investments: In Q4, ValueAct established new positions in BlackRock and Liberty Live Holdings with 695,000 shares and 1,799,319 shares respectively, demonstrating a strategic pursuit of diversification in its portfolio.
- Reduction Strategy: Conversely, ValueAct reduced its stake in Disney by 1,314,000 shares, leaving it with 3,077,931 shares, reflecting a cautious outlook on the traditional media sector's future.
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- Sports Viewership Surge: Nielsen's January report indicates an 82% monthly increase in ESPN viewership, primarily driven by the College Football Playoffs, significantly boosting cable sports channels and reinforcing ESPN's leadership in the sports broadcasting market.
- Cable News Growth: Cable news channels saw a 13% rise in viewership from December, with FOX News Channel and CNN experiencing gains of 17% and 29% respectively, highlighting the appeal of an active news cycle and enhancing the competitive positioning of these networks.
- Broadcast Performance Improvement: Broadcast viewership increased by 4.2% in January compared to December, with NFL games dominating the top 15 broadcasts, and ABC's drama series 'High Potential' further enhancing the audience base, showcasing the strong draw of sports and entertainment content.
- Streaming Dominance Continues: Despite the rise in traditional TV viewership, streaming still commands 47% of the market share, with Netflix's 'Stranger Things' contributing 15.4 billion viewing minutes, underscoring the importance and growth potential of streaming platforms in daily entertainment consumption.
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