The Walt Disney’s (DIS) ABC News unit has agreed to pay $15 million to settle a long pending lawsuit related to President-elect Donald Trump’s defamation case. The amount will be termed as a “charitable contribution” and will go toward a non-profit organization that is responsible for building Trump’s presidential library. Both parties signed the agreement on Friday and issued a public statement on Saturday, December 14.
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Furthermore, ABC News will give another $1 million in legal fees to Trump’s lawyer, Alejandro Brito. The money toward the library is to be deposited in an escrow account within ten days, while the lawyer is also to be paid within ten days.
Details of Trump’s Defamation Lawsuit
ABC News anchor George Stephanopoulos said in an interview aired on March 10, 2024, on “This Week” that Trump had been found civilly liable for raping writer E. Jean Carroll and defaming her. However, a federal jury passed the judgment that Trump was liable only for sexual abuse under New York Law. Trump sued ABC News and Stephanopoulos almost immediately following the show.
The statement published on ABC’s website mentioned that both the news unit and the anchor regretted the statements made about Trump during the interview. An ABC News spokesperson also noted that the news house was happy that both parties reached a settlement. Meanwhile, Trump has appealed two verdicts passed in 2023 and this January that alleged he was liable for sexually abusing Caroll and ordered to pay damages to the victim.
America’s Big Tech Donate to Trump’s Inaugural Fund
Interestingly, America’s big tech companies are opening their coffers to Donald Trump’s inaugural fund to get in on his good books and mend ways from earlier tiffs. As of date, OpenAI’s Sam Altman, Instagram parent Meta Platforms (META), and Amazon’s (AMZN) Jeff Bezos have each pledged $1 million toward the inaugural fund. While, iPhone maker Apple (AAPL) is yet to make any such commitments, Trump hosted CEO Tim Cook for an evening dinner at his Mar-a-Lago resort last Friday.
Trump has been very vocal about the prominence and monopolistic powers of big tech companies. He is keen on ensuring innovation with safe and secure development and public awareness. Trump will also be responsible for making new AI (artificial intelligence) regulations. It remains to be seen how Trump will shape the future of these big tech companies.
Is Disney Stock a Good Buy Now?
Wall Street remains divided on Disney stock. On TipRanks, DIS stock has a Moderate Buy consensus rating based on 15 Buys and six Hold ratings. The average Walt Disney price target of $125.17 implies 10.4% upside potential from current levels. Year-to-date, DIS shares have gained 26.1%.
