The Walt Disney Company, a cornerstone of global entertainment, is reeling from a financial and public relations disaster in 2025, with CEO Bob Iger reportedly in a state of panic as the re-election of Donald Trump as the 47th U.S. President has triggered a massive customer backlash. Disney’s stock has plummeted, with the company losing an estimated $20 billion in market value since Trump’s victory on November 5, 2024. The fallout, fueled by a combination of controversial casting decisions, political missteps, and a polarized audience, has led to a significant exodus of customers from Disney’s theme parks, streaming services, and box office releases. As conservatives rally behind Trump’s criticisms of Disney’s “woke” agenda, Iger faces mounting pressure to stabilize the company amidst a storm of cultural and political upheaval.

A Perfect Storm of Controversy

Disney’s troubles began long before Trump’s re-election, but his return to the White House has amplified existing tensions. The company has been a lightning rod for conservative criticism in recent years, with Trump and his supporters accusing Disney of pushing a progressive agenda through its content and corporate policies. The live-action remake of Snow White, released on March 21, 2025, became a flashpoint, with star Rachel Zegler’s outspoken political comments and the film’s reimagined narrative drawing ire from conservative audiences. Zegler’s now-deleted Instagram post, which included a profane attack on Trump and his supporters, further alienated a significant portion of Disney’s customer base, leading to boycotts and a dismal $87 million global box office haul against a $450 million budget.

The Snow White debacle is just one piece of a larger puzzle. Disney’s broader strategy of diversifying its casting and modernizing classic stories has been met with mixed reactions. Films like The Little Mermaid (2023) and Mufasa: The Lion King (2024) faced similar accusations of “woke” casting, with conservative commentators arguing that Disney was prioritizing political correctness over storytelling. Trump himself has publicly targeted Disney, calling it “a woke disaster” during a 2024 campaign rally and vowing to hold the company accountable for what he perceives as an anti-American agenda. His remarks have resonated with his base, many of whom have vowed to abandon Disney’s parks, films, and Disney+ subscriptions.

Financial Fallout and Customer Exodus

The financial impact of this backlash has been staggering. Disney’s stock price, which hovered around $115 per share in early November 2024, has dropped to $85 as of August 27, 2025, wiping out billions in market capitalization. Theme park attendance, a key revenue driver, has declined significantly, with Walt Disney World reporting a 15% drop in visitors compared to the same period in 2024. Disneyland Resort in California has seen similar trends, with guests citing high ticket prices and dissatisfaction with Disney’s political stances as reasons for staying away. Disney+, once a bright spot for the company, has lost 3 million subscribers in the past six months, with many citing Zegler’s comments and Disney’s perceived alignment with progressive causes as their motivation for canceling.

The box office has been equally unkind. In addition to Snow White’s catastrophic performance, Mufasa: The Lion King underperformed with a $150 million global gross against a $200 million budget, further straining Disney’s theatrical division. The company’s 2025 slate, including Freakier Friday and Captain America: Brave New World, has seen moderate success but failed to offset the losses from high-profile flops. Analysts estimate that Disney’s theatrical losses alone could exceed $500 million for the year, a stark contrast to the success of competitors like Warner Bros., whose horror film Weapons crossed $200 million on a $38 million budget.

Bob Iger’s Response and Internal Turmoil

Insiders report that Bob Iger, Disney’s CEO since his return in 2022, is grappling with the crisis behind closed doors. Described as “freaking out” by sources within the company, Iger has faced criticism for his handling of Disney’s public image during Trump’s re-election campaign. Unlike in previous years, when Iger was vocal about his opposition to Trump’s policies, he has remained notably silent since the 2024 election. This shift has been interpreted by some as an attempt to avoid further antagonizing conservative audiences, but it has done little to stem the tide of customer defections.

Iger’s decision to settle a $15 million defamation lawsuit with Trump in December 2024, stemming from inaccurate reporting by ABC News, was seen as a capitulation to the President-elect. The settlement, which included Disney covering Trump’s legal fees, drew backlash from media advocates who feared it would embolden Trump to target other outlets. Within Disney, the move sparked dissent, with employees accusing Iger of bowing to political pressure. The company’s subsequent scaling back of diversity, equity, and inclusion (DEI) initiatives in February 2025, following an FCC investigation led by Trump-appointed Commissioner Brendan Carr, further alienated progressive staff members, creating a rift within the organization.

Trump’s War on Disney

Trump’s animosity toward Disney is not new, but his second term has given him a platform to escalate his attacks. During his first presidency, Trump clashed with Iger over Disney’s opposition to policies like the Paris climate accord withdrawal, prompting Iger to resign from Trump’s business advisory council in 2017. In 2025, Trump has taken a more aggressive stance, leveraging his influence to criticize Disney’s content and corporate decisions. His comments about Snow White and Zegler have fueled online campaigns, with hashtags like #BoycottDisney trending on X and amassing millions of views.

Trump’s administration has also taken concrete steps against Disney. The FCC’s investigation into Disney and ABC’s DEI policies, announced in March 2025, has raised concerns about potential regulatory action, including threats to the company’s valuable broadcast licenses. Trump’s past suggestions that Disney relocate its operations out of Florida, made during his feud with Governor Ron DeSantis, have resurfaced, with some speculating that he could push for punitive measures against the company’s Reedy Creek Improvement District, which grants Disney significant autonomy over its Florida properties.

A Polarized Audience and Cultural Divide

Disney’s struggles reflect a broader cultural divide in America, with the company caught between its progressive values and the expectations of a diverse audience. While films like Black Panther and Encanto demonstrated the commercial potential of diverse storytelling, the backlash against Snow White and other projects suggests that Disney’s approach has alienated a significant portion of its conservative fanbase. Posts on X have highlighted the sentiment, with users praising Trump for “holding Disney accountable” while others defend the company’s commitment to inclusivity.

The controversy surrounding Disney World’s Hall of Presidents attraction further illustrates this divide. Rumors that Disney considered closing the attraction after Trump’s re-election were debunked, but the company’s decision to update Trump’s animatronic figure in June 2025 sparked debate. Some fans praised Disney for maintaining the attraction’s tradition of honoring all U.S. presidents, while others criticized the move as pandering to Trump supporters. The attraction’s reopening, which went unannounced, was seen as an attempt to avoid further controversy.

The Path Forward for Disney

As Disney navigates this crisis, Iger faces a daunting challenge: rebuilding trust with customers while maintaining the company’s brand identity. The potential appointment of Dana Walden, a close ally of Vice President Kamala Harris, as Iger’s successor in 2026 could complicate matters, given Trump’s public criticism of her ties to Harris. Disney’s decision to resume advertising on X, owned by Trump ally Elon Musk, suggests an effort to mend fences with conservative audiences, but it has done little to quell the backlash.

To recover, Disney may need to rethink its content strategy, focusing on stories that resonate across political divides. The success of Freakier Friday, which grossed $180 million globally, indicates that family-friendly, apolitical content still has broad appeal. Streamlining production budgets, as seen in Warner Bros.’ Weapons, could also help mitigate financial risks. Additionally, Iger must address internal dissent, with employees divided over the company’s handling of political controversies and DEI policies.

A Make-or-Break Moment

Disney’s current crisis is a make-or-break moment for the company and its CEO. The loss of billions in market value, coupled with declining attendance and subscriptions, has put immense pressure on Iger to act decisively. Trump’s influence, amplified by his re-election and loyal base, poses a unique challenge, as Disney risks further alienating customers if it appears to capitulate to political demands. At the same time, the company must navigate a polarized landscape where every decision—from casting to corporate statements—is scrutinized.

As of August 27, 2025, Disney’s future remains uncertain. The company’s ability to weather this storm will depend on its capacity to balance its creative vision with the realities of a divided audience. For Iger, the stakes could not be higher: failure to adapt could cement Disney’s decline, while a successful pivot could restore the magic that has defined the House of Mouse for nearly a century. For now, as customers continue to leave and Trump’s shadow looms large, Disney faces a battle unlike any in its storied history.