Disney, ABC Reportedly Sue FCC Over Early License Renewals, Call It An 'Existential Threat'

• Disney and ABC asked the D.C. District Court for a “speedy hearing” and a temporary restraining order.
• They alleged in the lawsuit that the Trump administration’s actions against the broadcaster are based on its programming.
• The lawsuit specifically cites posts from President Donald Trump, including one in which he complained that late-night television hosts are “almost 100% negative” toward him.

The Walt Disney Co. (DIS), ABC and several of its owned-and-operated stations reportedly sued the Federal Communications Commission (FCC) on Tuesday, aiming to stop an early broadcast license renewal process, calling it an “existential threat.”

According to an NBC News report, the lawsuit asks a federal court in Washington, D.C., to immediately block the FCC from taking or threatening any action against the Disney and ABC stations in connection with the early renewal applications.

Disney shares were up nearly 0.4% in Tuesday’s opening trade.

DIS, ABC Seek A ‘Speedy Hearing’

The eight ABC stations whose licenses were subject to the FCC’s early renewal order are included in the lawsuit. Disney and ABC asked the D.C. District Court for a “speedy hearing” and a temporary restraining order.

The companies are seeking to stop the FCC from requiring the stations to file renewal applications years before their licenses would ordinarily come up for renewal.

The lawsuit says the order gave the stations only 30 days to file applications that “ordinarily take months to prepare.”

The complaint asks the court to “immediately” stop the FCC “from taking or threatening to take any action” against Disney and ABC’s stations related to the early license renewal applications.

DIS Calls FCC Action A 'Retaliatory Campaign'

Disney and ABC allege in the lawsuit that the Trump administration’s actions against the broadcaster are based on its programming.

The lawsuit specifically cites posts from Trump, including one in which he complained that late-night television hosts are “almost 100% Negative to President Donald J. Trump” and questioned whether broadcast licenses should “be terminated.”

The complaint also references the FCC’s actions involving ABC late-night host Jimmy Kimmel in September 2025, when Disney briefly pulled him off the air following pressure from FCC Chairman Brendan Carr.

During an interview with CNBC last week, Disney CEO Josh D’Amaro said that the company will “stand up” to journalistic integrity.

“We’re not going to be told how to run that side of our business. I like what we do. We tell incredible stories. I think we do it well. And we’re going to stay committed to that,” he said.

Why The FCC Is Calling In ABC's Licenses

The FCC said in its order in April this year that it has been investigating Disney’s ABC and its subsidiaries for possible violations of the Communications Act of 1934 and FCC rules, including the agency’s prohibition on unlawful discrimination. The agency said Disney’s ABC had responded to two Letters of Inquiry as part of the investigation, but that additional action was appropriate.

The FCC stated that its rules allow the agency to call a broadcaster’s licenses in for early renewal when it considers the renewal applications essential to the proper conduct of an investigation. The agency said that doing so allows it to continue its investigation while also assessing whether the broadcaster has met its broader public-interest obligations.

The FCC determined that calling in Disney’s ABC licenses for early renewal was “essential” under its regulations and directed the company to file renewal applications for all of its licensed TV stations within 30 days, by May 28, 2026.

What Retail Traders Think Of DIS Stock

Retail sentiment on Stocktwits around Disney trended in the ‘bullish’ territory at the time of writing.

DIS stock is down 9% year-to-date and 11% over the past 12 months. The S&P 500 ETF (SPY) and the Vanguard Total Stock Market Index Fund ETF (VTI) are up 20% over the past 12 months.

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