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A new report reveals that Disney decided to settle the defamation case with President-elect Donald Trump to avoid a jury trial in Florida and to protect their brand.

The settlement in Trump’s defamation suit against ABC News ended with the company agreeing to donate $15 million to Trump’s future presidential foundation and museum and having the network and its anchor George Stephanopoulos say they “regret” remarks made on air about the civil case against the former and future president.

Trump will also receive an additional $1 million from the network to cover his legal fees.

The New York Times cited “three people inside the company with knowledge of the discussions” who wished to remain anonymous in its report Wednesday that pursuing the case rather than settling would open the company up to a jury trial in the deep-red state of Florida. The company was reportedly concerned that the jury “would side with the president-elect and potentially award him a sizable sum exceeding what it would cost to settle.”

“Disney could have appealed, of course, and executives felt the law was on their side. But the appeals process also carried substantial risk, Disney lawyers concluded,” The Times noted.

“At a minimum, the $205 billion company would be litigating against a vindictive sitting president and risking harm to its brand,” the report continued, pointing to Disney’s costly legal fight with Florida Gov. Ron DeSantis.

The company also worried that ABC News could suffer as Trump’s previous criticism included thoughts about stripping the network of its broadcasting license.

“In the worst-cast scenario, Disney concluded, fighting the case could lead to the Supreme Court and become a vehicle for Mr. Trump and his allies to overturn the landmark First Amendment decision in New York Times v. Sullivan. That 1964 ruling, as well as a handful of subsequent cases, made it much harder for public figures like Mr. Trump to win libel lawsuits,” The Times noted, adding that Disney’s legal team decided “$16 million was a small price to pay for resolving a tricky case.”

Social media users weighed in on the alleged behind-the-scenes decisions.

Frieda Powers
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