In a significant development, Disney and the state of Florida have reached a settlement, putting an end to their years-long dispute. The Central Florida Tourism Oversight District, responsible for governing the special tax district where Disney is located, approved the settlement in a meeting held on Wednesday morning.

The conflict between Disney and Florida began nearly two years ago when Republican Governor Ron DeSantis established the Central Florida Tourism District to oversee the area in which Disney operates. The dispute escalated in March 2022 when Disney's then-CEO, Bob Chapek, voiced opposition to a controversial bill restricting teachings regarding sexual orientation and gender identity, denouncing it as a challenge to basic human rights. In response, DeSantis sought to terminate Disney's special privileges, appointing a new board of supervisors to oversee the district.

Disney filed a lawsuit against DeSantis and his allies, citing violations of the company's free speech rights. Meanwhile, the state of Florida threatened to raise taxes, utility rates, and develop land around Disney's theme parks. However, in a press conference on Wednesday, Governor DeSantis expressed satisfaction with the settlement, claiming that everything had been done in the best interests of the state.

As part of the settlement, Disney will drop its public records request lawsuit, which accused the oversight board of withholding files in violation of Florida law. This paves the way for Disney to negotiate a new development deal, as it considers the prior agreements null and void. The settlement also includes the dismissal of state-wide lawsuits filed by both parties, without any admission of fault or liability.

Both Disney and the Central Florida Tourism Oversight District view the settlement as a positive step towards collaboration and the promotion of world-class attractions. Jeff Vahle, President of Walt Disney World, expressed his satisfaction with the end of litigation, while Charbel Barakat, vice chairman of the Oversight District, highlighted the opportunity to showcase accountable governance in Central Florida.

The dispute between Disney and Florida had drawn attention and criticism, even from within the Republican party. The settlement is seen as a mutual victory for both parties and may provide Disney with a competitive edge against Universal Orlando's upcoming expansion.

With this legal battle now behind them, Disney faces another challenge at its upcoming shareholder meeting on April 3. Billionaire activist Nelson Peltz, through Trian Partners, has been vocal about his concerns regarding Disney's management decisions and leadership. Peltz aims to secure two board seats at Disney and has criticized the company for having "lost its way."

The settlement marks a pivotal moment for Disney and Florida, putting an end to a prolonged conflict and offering new opportunities for collaboration and growth.