I'm of two minds on this, I think all comedians should be able to make fun of anything, but at the same time, just because you have the right to free speech doesn't mean you get to avoid the consequences of what you say. Whether I agree with the outcome or not, if ABC don't like what Jimmy Kimmel said, they are free to pull his show off the air and fire him all they want, Kimmel is not entitled or owed TV time nor is ABC required to broadcast his show. But, by the same token, ABC must then be willing to accept the consequences of doing that and any bad PR that comes from it.

That all being said, what I don't like is that even if ABC execs decided that they found what Kimmel said distasteful or offensive, this still looks an awful lot like acting out of fear of a president who famously is very spiteful to anyone who says anything bad about him.

It was the CEO of Disney and it happened after threats from the head of the FCC.

Edit: to clarify, the CEO of Disney caved to pressure from affiliates owned by a Nexstar who are actively petitioning the FCC to relax media ownership rules so they can buy more affiliates than the law allows.