NEW YORK, December 30, 2025, 19:19 ET — After-hours
- Disney shares closed up about 0.5% and were little changed in extended trading.
- DOJ said Disney will pay $10 million to resolve allegations tied to kids’ privacy rules on YouTube.
- Investors are watching for compliance steps and any broader fallout for digital ad practices.
Walt Disney (DIS) shares were little changed in after-hours trading on Tuesday after the U.S. Justice Department said the company agreed to pay a $10 million civil penalty to settle allegations it violated children’s online privacy laws in some videos uploaded to YouTube.
The settlement matters because it targets how content makers label kid-directed videos online — a designation that can determine whether platforms collect data and serve targeted ads. Privacy enforcement has become a recurring headline risk for media groups as more viewing and marketing shifts to digital platforms.
For Disney, the dollar amount is small, but investors will be watching whether the case forces changes to how the company manages its kids’ content across third-party channels and whether regulators widen scrutiny beyond this complaint.
A DOJ complaint alleged Disney Worldwide Services and Disney Entertainment Operations failed to properly label some videos it uploaded to YouTube as “Made for Kids.” The department said that allowed Disney and others acting on its behalf to collect personal data from children under 13 and use it for targeted advertising. Reuters
The order, which finalizes a settlement announced in September, requires Disney to create a program to ensure it complies with the Children’s Online Privacy Protection Rule (COPPA) on YouTube going forward, the DOJ said. COPPA requires online services aimed at children under 13 to notify parents about what data they collect and obtain verifiable parental consent before collecting it.
Disney could not immediately be reached for comment, Reuters reported. The DOJ said the case was referred by the Federal Trade Commission.
In its September announcement, the FTC said the complaint involved kid-directed videos on YouTube and noted Disney receives a portion of advertising revenue generated on its videos, as well as revenue from ads it sells directly.
Disney shares closed at $114.79, up about 0.5% on the day. The stock traded between $114.10 and $115.28 and is in a 52-week range of $80.10 to $124.69, according to Google Finance.
The broader market ended slightly lower in choppy, holiday-thin trading. The S&P 500 slipped 0.14% and the Nasdaq fell 0.23%, while communication services stocks outperformed, Reuters reported.
“The growth rates are going to converge between technology and everything else next year,” said Mark Hackett, chief market strategist at Nationwide, describing year-end repositioning. Reuters
Separately, an SEC filing showed Sonia L. Coleman, Disney’s senior executive vice president and chief people officer, sold 2,431 shares at $114 per share on Dec. 24 under a Rule 10b5-1 plan — a preset trading program used by insiders.
Looking ahead, investors will watch for any Disney response and for details on how the company implements its compliance program for YouTube uploads. The FTC has said the proposed order would require Disney to run a video-review program to assess whether uploads should be designated “Made for Kids,” unless YouTube adopts age-assurance tools or changes the labeling framework. Federal Trade Commission
Traders are also digesting the Federal Reserve’s latest meeting minutes and looking toward the Fed’s next policy meeting on Jan. 27-28, with markets expecting no change in rates, Reuters reported.
Disney also has a cash dividend installment due on Jan. 15, 2026, after the board declared a $1.50 per share dividend payable in two $0.75 installments, according to the company’s investor relations site.
