The Real Story of the Jimmy Kimmel Suspension
TV mergers, Nexstar TEGNA deal, Sinclair boycott, FCC review,
ABC ad losses, media consolidation, follow the money
11.03.25
When challenges arise, blame often falls on familiar targets—politicians, rivals, or other groups. In business, however, identifying the real drivers means following the money. Popular culture reminds us that key developments are usually shaped by transactions and financial incentives. By tracing financial flows, we move beyond surface narratives and gain a deeper understanding of the motivations behind decisions. At GGP, we focus on presenting factual information that clarifies how money influences outcomes, benefiting both brief readers and full subscribers.
The brief suspension of ABC's Jimmy Kimmel Live! in September serves as a notable example. Initial reports emphasized free speech and ideology, but a much closer look reveals the real issue: television station mergers and substantial advertising revenue are the main factors behind such decisions.
Late-night host Jimmy Kimmel made a joke on his ABC show on September 15th, 2025. He talked about the killing of conservative leader Charlie Kirk. Kimmel said President Trump's supporters, whom he called the "MAGA gang," were trying to tell the killer was not one of them. The killer was Tyler Robinson, who had left-leaning views. The joke upset many conservatives right away. FCC Chair Brendan Carr stated, "the sickest conduct possible", and called it a possible rule violation. Protests started outside the ABC studio. Some staff got threats.
ABC suspended Jimmy Kimmel Live! on September 17th. However, the show returned to the air less than a week later, on September 24th.
A TV merger deal played a hidden role in the short suspension, when two large station groups, Nexstar Media Group and Sinclair Broadcast Group, stopped airing the show on their ABC channels. The move hurt ABC financially and led the network to suspend the show for one week. These groups wanted to impress the federal regulators during a major merger review.
On September 17th, Nexstar announced it would not air Kimmel's show on its 28 ABC stations. These stations reach many homes in cities like Seattle and Nashville. Sinclair followed soon after, pulling the show from its 31 ABC stations in places like Baltimore and Las Vegas. Together, the two groups blocked the show from about 25% of U.S. TV homes.
ABC, owned by The Walt Disney Company, suspended production of Jimmy Kimmel Live! later that same day, September 17th. The network said the pause was indefinite. Without the stations airing it, ABC lost money, as the one-week stop cost the network between $1 million and $2 million in ad sales. The show generates $70 million, roughly a year's worth of revenue from sponsors like Allstate and McDonald's.
Why did Nexstar and Sinclair act so fast? Nexstar is trying to buy TEGNA, another station owner, in a $6.2 billion deal announced on August 19, 2025. The deal would make Nexstar the biggest local TV owner in the U.S., with stations reaching more than 39% of homes. But it needs approval from the Federal Communications Commission (FCC). Nexstar filed papers with the FCC in late September. The merger was partly responsible for the situation, prompting the FCC to review TV ownership rules on September 30th.
FCC Chair Brendan Carr praised Nexstar's decision to skip Kimmel's show. He called it a "strong case" for following rules. Some Democrats in Congress linked the preemption to the merger. They said Nexstar was trying to win favor with the FCC to get the deal approved. The merger is expected to close in the second half of 2026, pending approval.
Sinclair also has business reasons to act. The company owns 178 stations and has deals under FCC review, like a $1.5 billion station trade. On September 18th, Sinclair said it would replace Kimmel's show with local news. Sinclair asked Kimmel for an apology and a $500K donation to Kirk's family. It also wanted a meeting with ABC leaders.
The suspension lasted from September 17th to September 23rd. ABC announced on September 22nd that the show would return on September 24th. Nexstar and Sinclair ended their boycotts on September 26th, to air the Kimmel show again on their stations. Sinclair said the return would be immediate.
Experts believe the Kimmel fight may benefit Nexstar's merger, as it demonstrated the company’s ability to manage content issues independently. The deal is still under review as of November 2025, with no final decision from the FCC yet.
In the television industry, business deals can influence viewership. Station groups leveraged their control over airtime to promote ABC during a critical period of mergers and acquisitions.
The controversy surrounding Kimmel's joke quickly escalated into a larger confrontation between the left and the right. Conservatives argued that his suspension was a justified consequence of inappropriate humor, describing the situation as an example of "consequence culture," where individuals face repercussions for offensive remarks. Trump and his supporters contended that this was not censorship, but rather a matter of accountability.
On the other hand, those on the left viewed the suspension as an infringement on free speech. Protests erupted outside Disney's headquarters in Burbank on September 18th, with approximately 200 people gathering and holding signs that read "Don't Bend a Knee to Trump," "Resist Fascism," and "Cancel Disney+." In response to the situation, some fans decided to cancel their subscriptions to Disney+ and Hulu as a form of protest. A Sacramento resident, by the name of Hernandez Santana, a 64-year-old, allegedly fired three shots at an ABC affiliate station through a lobby window. The shots caused no injuries but shattering glass and prompting evacuations.
Left-wing voters and stars spoke out strongly. Jimmy Kimmel said on his return show that Trump and the government were trying to shut him down. He called the pressure "anti-American" and compared it to fighting fascists. Late-night hosts like Jon Stewart agreed. Stewart played clips of Trump calling opponents "fascists" and said the suspension showed real fascism from the right. Over 400 Hollywood names signed a letter from the ACLU. They claimed ABC succumbed to Trump's intimidation. Democratic leaders, such as Sen. Ed Markey, stated online that it was "censorship in action" amidst a "fascist uprising."
The debate also raised the issue of cancel culture. The left said the right was using cancel culture to silence critics. The right said their side was just about consequences, not bans. Trump allies pushed this idea to flip the story on free speech. But facts show none of this was the full truth. White House officials said they did not order the suspension. It came from ABC's own choice to fix business problems. The real push came from station owners protecting their deals, not direct orders from Trump or the FCC.
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