Disney’s Walden Confirms Ongoing Negotiations for Kimmel’s Future Amid Budget Pressures

Key points

• Dana Walden, Disney’s president and chief creative officer, declined to announce a decision on Kimmel’s future, stating she is 'letting Casey Bloys make the news' regarding the broader corporate structure.
• Walden acknowledged that while Kimmel’s ratings are up, they are relative to a smaller overall late-night broadcast audience, making the show less lucrative despite strong digital presence on YouTube.
• The negotiations are complicated by Disney’s need to cut costs, with Kimmel previously suggesting late-night shows do not need to cost $120 million to produce.
• Kimmel’s current one-year contract extension, signed in December 2025, keeps him on the air through the 2026-27 season, with his deal expiring in May 2027.
• Walden emphasized the 'deep partnership' and personal friendship between Kimmel and Disney executives, noting they are trying to find a solution that honors both the business and the relationship.

Background

This development follows earlier reports in September that Kimmel’s contract might not be renewed, which ABC quickly denied. The situation is part of a broader trend of cost-cutting at Disney under CEO Josh D’Amaro, including recent layoffs and the consolidation of the 'One Disney' strategy. Kimmel’s show has also faced political pressure, including FCC scrutiny and pre-empted airings by Nexstar Media following jokes about Charlie Kirk.

How outlets are covering it

The Hollywood Reporter and Variety both highlight Walden’s emphasis on the 'challenging' economics of late-night television, noting that while digital views are high, they do not generate the same revenue as on-air advertising. Deadline focuses more on the specific budget negotiations, noting that Kimmel has previously argued for lower production costs and that Disney is walking a 'tightrope' to keep him happy while cutting expenses. All three outlets agree that the decision is not a 'no-brainer' due to the shrinking broadcast audience, despite Kimmel’s status as a free-speech symbol and a loyal Disney figure.

Why it matters

The future of Jimmy Kimmel Live! serves as a bellwether for the viability of traditional late-night television in an era of shrinking broadcast audiences and rising production costs. The outcome of these negotiations will likely set a precedent for other late-night shows, such as Seth Meyers’ Late Night, which has already faced budget cuts. It also reflects the broader financial pressures Disney faces as it consolidates its operations and adapts to changing media consumption habits.

What to watch

Disney and Kimmel are expected to continue negotiations to find a financially viable model for the show that honors their partnership. A decision on Kimmel’s future beyond the 2026-27 season is likely to be made before his contract expires in May 2027. The outcome may also influence the future of other late-night shows and the broader strategy for Disney’s entertainment division.