The Federal Communications Commission is reportedly considering an unprecedented review of broadcast licenses held by The Walt Disney Company after Jimmy Kimmel's comment on First Lady Melania Trump.
The FCC may decide not to initiate the procedure, but Chairman Brendan Carr has already challenged Disney's licenses, citing diversity initiatives.
The controversy began when Jimmy Kimmel made a monologue about the first lady looking like an expectant widow, prompting President Donald Trump and First Lady Melania Trump to demand his firing.
Disney's stock fell almost 1% in Tuesday morning trading, but the FCC has not publicly confirmed the launch of any formal review or enforcement action.
Last year, Kimmel's show was temporarily taken off the air after he commented on the murder of right-wing activist Charlie Kirk, infuriating conservatives and prompting threats from Carr.
Carr has been a staunch critic of ABC's diversity programs, and the FCC review could be related to this issue.