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The FCC chair's correspondence aptly references ABC's recent settlement with Donald Trump, involving a defamation lawsuit that resulted in a $15 million payout to his foundation, along with $1 million in legal fees. This event illustrates a dire situation for Disney's news organization, suggesting a broader crisis of credibility in media institutions.
The Context of the Letter
The FCC chair—an appointment that many expected would usher in reforms concerning media ownership and public trust—raised important points about the plummeting public confidence in media outlets. The letter juxtaposes ABC's legal troubles with a general decline in media credibility, a predicament exacerbated by the negative perception of news organizations among many Americans.