analyst

Decades of Hollywood empire-building ended with a quake in 2017 when Australian media mogul Rupert Murdoch decided to sell much of his Fox entertainment holdings amid the rise of Netflix and other tech giants.

This week, another titan who has been instrumental in shaping American media and telecommunications began to unwind his Hollywood holdings.

Brian L. Roberts — who with his father built Comcast into a cable TV and internet colossus — announced his company would spin off its prestigious NBCUniversal unit into a separate publicly traded company sometime next year.

The move reverses Roberts’ purchase of NBCUniversal in 2011 — a bold bet that created a behemoth with popular programming and cable pipes to pump that content into consumer homes.

Comcast’s breakup marks the close of a Hollywood era, one dominated for 40 years by a class of maverick moguls: Murdoch, CNN founder Ted Turner, Viacom’s Sumner Redstone, cable titan John Malone and the Philadelphia-based Roberts family.

Now, a new crop of leaders has emerged, reflecting Silicon Valley’s vast influence over the film and and TV business, which has been upended by streaming and, now, artificial intelligence.

“There was a time that Murdoch, Malone and Brian were really industry leaders who could affect change,” said Bank of America managing director Jessica Reif Ehrlich in an interview. “That’s not true any longer.”

Analysts widely believe Monday’s announcement is a prelude to eventual sales of both Comcast and NBCUniversal, a theory that Comcast rejects.

Roberts, 67, told analysts he will remain involved in both NBCUniversal and Comcast after the separation. Still, he plans to relinquish his chief executive role after 25 years and a half century at Comcast. Roberts has picked trusted associates to run each firm, and his family will continue to hold controlling shares of both companies.

But the shift underscores a dramatic loss of clout by Comcast and other traditional media enterprises. Netflix, Apple, Amazon and Google’s YouTube have diminished the industry’s financial pillars — box office receipts and cable programming fees — and given consumers control over when and how they watch programming.

Murdoch was the first to flee. In 2014, he was rebuffed in his $80-billion bid to beef up his 21st Century Fox by buying HBO, CNN and other Time Warner assets. Murdoch’s defeat led to the Fox asset sale to Walt Disney Co.

Last fall, Comcast made a run for the same properties with a plan to unite NBCUniversal with Warner Bros.

Instead, 43-year-old tech scion David Ellison — with help from his billionaire father, Oracle software co-founder Larry Ellison — scooped up the prize for a staggering $111 billion.

The pending blockbuster merger of Ellison’s Paramount Skydance and Warner Bros. Discovery is expected to reshape the industry and leave NBCUniversal increasingly vulnerable to a takeover.

“It looks like Comcast’s NBCUniversal was left standing on the dance floor without a partner,” MoffettNathanson media analyst Robert Fishman wrote in a Tuesday note to investors.

Paramount’s play for Warner Bros. came a month after Ellison finalized his family’s purchase of cash-strapped Paramount from Shari Redstone. The one-two acquisition punch would propel the Ellison family to top-tier moguls with influence over CNN, CBS News, HBO, Turner Classic Movies and two historic Hollywood studios.

“It’s a flagging industry. … The industry will have to consolidate to survive,” said C. Kerry Fields, a USC Marshall School of Business economics professor. “Those who have content plus [streaming] distribution are going to be the winners.”

Roberts knows distribution. His father in 1963 bought his first cable TV system in Tupelo, Miss. It was a quirky bet for Ralph Roberts, who figured his belts and suspenders business would soon be toast as beltless polyester pants became the rage.

Brian Roberts joined Comcast as a high school intern, setting up supermarket promotions. In 1975, he became a trainee cable installer, climbing poles and stringing cables. He joined Comcast full time in 1981 after graduating the Wharton School at the University of Pennsylvania.

For more than 30 years, he worked in tandem with his dad. With key associates, they built the nation’s foremost cable TV service — then the entertainment gateway — and grew stronger by offering internet, phone and then wireless service.

Analysts credit the 2011 purchase of NBCUniversal as a huge success; Comcast rescued a company that was on the ropes due to General Electric’s under-investment.

Over the years, Comcast rebuilt NBC and Spanish-language Telemundo, writing big checks for the best sports rights, including the FIFA World Cup, NFL, NBA and Major League Baseball.

Comcast also recognized value in theme parks and invested heavily, building Universal Studios as a formidable rival to Disney. NBC finished the season in first-place among traditional TV broadcasters and its L.A. film studio is an industry leader.

But the world has changed.

“One of the defining characteristics of this company has always been our willingness to look ahead, embrace change, and position ourselves for the future,” Roberts told analysts during a Monday call.

Reif Ehrlich, the Bank of America analyst, said Comcast needed to do something — or watch its stagnant stock sink farther.

Wall Street has punished the company amid steep losses in its cable TV and broadband internet units, and because NBCUniversal has historically generated its biggest profits from its cable channels.

In January, Comcast spun off those networks, including CNBC, MS NOW, USA Network and Golf Channel, to create a new entity called Versant.

But the move failed to boost Comcast’s battered stock, which dropped 3.3% on Wednesday to $23.73.

Five years ago, Comcast stock topped $50 a share.

“It was just a very challenged market on both sides, and it’s getting worse, not better,” Reif Ehrlich said.

Comcast faces competitors beyond traditional telecommunications firms, including AT&T and T-Mobile. SpaceX’s Starlink provides satellite internet service.

NBCUniversal must jockey alongside other well-capitalized players, including Amazon, Netflix and Disney. NBC’s streaming service, Peacock, has struggled to get traction. It counted 46 million paying subscribers as of the first quarter, a fraction of Netflix’s 325 million and the nearly 132 million subscribers of Disney+.

“It’s kind of a subscale player,” Reif Ehrlich said. “It’s just a real battle, and NBC has expensive sports rights.”

Roberts conceded the difficult landscape on the analyst call.

“The world is changing faster than ever,” Roberts said. “Technology, consumer behavior, competition, capital requirements are all evolving at an unprecedented pace … When we acquired NBCUniversal, more than 15 years ago, the industry looked very different.”

He will retain control for at least three years. The NBCUniversal spin-off is envisioned as a tax-free transaction for shareholders, providing a short-term buffer from deal-making to preserve that structure.

NBCUniversal could be up for grabs by 2029 — a pivotal year when the NFL is expected to open negotiations for a new round of broadcast rights. That auction is expected to draw heavy interest from Amazon and other streamers — not just veterans Fox, NBC, Disney’s ESPN and Paramount’s CBS.

“Brian Roberts has already proven his willingness to play the long game and with continued control should be the end decision maker,” Fishman said.

Much like Murdoch, who is now 95 and partially retired.

“Rupert was the smartest guy in Hollywood — he got out at the top,” Reif Ehrlich said.

He entrusted power to his 54-year-old son, Lachlan, who has been busy remaking Fox after the 2019 sale to Disney, which included Fox’s film and TV studios, streaming service Hulu and the FX and National Geographic channels. Fox also unloaded its regional cable sports networks — a savvy move before that business cratered.

The Murdochs kept Fox Sports, the Fox broadcast network, TV stations, Fox News Channel and the studio lot.

The company has been expanding. Lachlan Murdoch led Fox’s purchase of Tubi, which provides free TV channels and movies for smart televisions, keeping Fox in the streaming game. The company launched Fox News and weather products, and subscription service Fox One, which streams the company’s sports and news.

Earlier this month, Lachlan Murdoch stunned the industry by agreeing to pay $22 billion for Roku, a leading streaming platform that reaches 100 million viewers worldwide. Murdoch called the proposed purchase “a defining moment for Fox.”

Dan Perry: The US ‘may pretend’ that Israel can’t attack Hezbollah ‘in order to get this deal done’. Israeli affairs analyst Dan Perry explains how the US, Israel and Iran may react as they get closer to a potential agreement.

With California facing increasingly destructive wildfires, experts and officials have long urged the strategic removal of dense, flammable vegetation that can erupt into particularly destructive flames from a lightning bolt or the spark of a power line.

But after years of record investment by the state in such wildfire risk mitigation, two key money sources are drying up, potentially reducing the state’s annual budget for vegetation removal by hundreds of millions of dollars.

Wildfire resiliency advocates are warning that the loss of these funds will leave the state vulnerable to devastation, and are calling on California’s next governor to take that threat seriously.

Currently, California relies heavily on two funding sources for wildfire mitigation work: A state program that charges polluters for their emissions and a climate bond approved by voters in 2024.

Late Friday, however, state officials adopted a new structure for the emissions program, called cap-and-invest, that analysts say will likely reduce wildfire mitigation funding by $200 million per year. At the same time, the governor’s latest budget proposal puts the state on track to allocate the majority of the climate bond’s $1.5 billion in wildfire prevention money within just three years.

As a result, California could go from routinely pulling more than $600 million a year from these sources, to just $150 million, according to an estimate from the Wildfire Solutions Coalition — a group of more than 80 organizations representing conservationists, business owners, fire officials and tribal leaders.

The coalition is urging the state to find new sources of funding for the work.

“We have the scientists, we have the technicians, we have the advocates,” said Michelle Decker, who is on the coalition’s executive committee and serves as president and CEO of the Inland Empire Community Foundation. “We see this problem. We can get ahead of this problem. It is a revenue issue.”

California wildfires have become increasingly costly. The 2025 L.A. fires alone caused an estimated $250 billion in damage and economic loss. Insurance companies have already paid out $22.4 billion.

In attempt to reduce the risk of damage to communities and ecosystems, the state has employed a wide range of tactics. These includes fortifying homes against wildfires, replanting fire-ravaged forests and thinning out vegetation with prescribed burns, goat grazing and manual thinning with heavy machinery to reduce the intensity of potential fires.

Research suggests wildfire mitigation work pays off. A recent analysis of 285 fires in the western U.S. found that every dollar spent on landscape projects saved about $3.75 in wildfire damage.

But as funding from cap-and-invest and the climate bond dwindle, the state must increasingly turn to Cal Fire, which devotes only a small portion of its budget to mitigation work.

“This is not an issue that can be pushed off to a timeline based solely on politics,” said Steve Frisch, a founding member of the coalition and president of the Sierra Business Council. “Fire happens whether we want it to or not.”

After a series of destructive wildfires in Northern California and the 2017 Thomas fire in Southern California, the state legislature began to explicitly focus on funding wildfire mitigation.

In 2018, lawmakers directed $200 million per year of cap-and-invest funds to wildfire mitigation projects.

As the Woolsey fire in Southern California and the Camp fire in Paradise raged later that fall, Trump accused the state of “gross mismanagement” of forest lands and threatened to cut off federal funds unless it was corrected.

Gov. Gavin Newsom and the legislature, with a significant budget surplus, began earmarking even more funds, leading to a peak of $1.1 billion in wildfire mitigation investments during the 2021-2022 fiscal year.

After the surplus dwindled, the legislature opted in 2024 to put a $10-billion climate bond in front of voters — $1.5 billion of which was dedicated specifically for wildfire mitigation work.

Newsom has since pointed to this high state funding to call on the federal government to step up its own investments into forest management work.

The federal government manages 57% of all forests in the state. While the U.S. Forest Service spent $3.1 billion mitigating wildfire conditions in the state over the last few years, California spent $4.3 billion, according to the California Forest Resilience and Wildfire Task Force.

However, the state has already allocated about $600 million of the climate bond’s wildfire mitigation pot for the 2024-2025 and current fiscal years. The latest budget proposal would allocate more than $300 million for this upcoming fiscal year. While many advocates support allocating the money quickly, it leaves little for future years.

Once that money is spent, California has to pay off the $10 billion bond with interest. The result is an estimated price tag of $16 billion, paid in roughly $400 million increments every year, for 40 years, according to the state’s Legislative Analyst’s Office.

As for the cap-and-invest funds, a fraught months-long debate at the California Air Resources Board on how to extend the program beyond 2030 resulted in a compromise that will cut the revenue it generates in half, the Legislative Analyst’s Office estimates.

Since other projects get priority — including $1 billion every year for California’s high-speed rail project — the new proposal would “likely leave no funding” for the wildfire and forest resilience line item, the Legislative Analyst’s Office found.

Cal Fire still holds a modest annual budget for wildfire mitigation work. In the 2024-2025 fiscal year, the agency had $500 million for forest management and fire prevention that was not directly tied to cap-and-invest or the bond — up from about $65 million two decades prior.

As for the federal government, independent analyses by Grassroots Wildland Firefighters and NPR found that Forest Service wildfire mitigation work is on the decline amid federal staffing cuts. The Forest Service claims the decrease in work was primarily due to poor weather conditions for activities like prescribed burns and staff being occupied with firefighting.

Both the state and federal government’s investments pale in comparison to the spending of California’s investor-owned utilities. In 2025 alone, the utilities planned to spend more than $9.2 billion on preventing their equipment from sparking the next devastating wildfire, primarily funded by Californians’ electricity bills.

Times staff writer Hayley Smith contributed to this report.

Paramount Skydance Chairman David Ellison defended his commitment to release 30 movies a year once his media company swallows Warner Bros. Discovery — a goal that some industry observers view as overly ambitious.

During a Monday call with analysts to discuss Paramount’s first-quarter earnings, the tech scion said the target was achievable because his management team would maintain current levels of production. Paramount has doubled its film release capacity to 15 films this year, matching the number of theatrical releases planned by competing Warner Bros.

“The two companies are actually making 30 films to date,” Ellison said. “We really view our pending acquisition of Warner Bros. Discovery as a powerful accelerant to our strategy.”

The company said it was on track to finalize its Warner takeover by the end of September. The $111-billion deal would transform the smaller Paramount into an industry titan with prestigious programming, including Harry Potter, “Game of Thrones,” “Euphoria,” as well as its current slate of Taylor Sheridan-produced franchises, including “Yellowstone” and “Landman.” The combined company also would own dozens of popular TV networks, including CBS, CNN, Comedy Central, Food Network and HGTV.

But the proposed merger would saddle the combined company with $79 billion in debt, stoking fears that Paramount would need to make steep cost cuts to balance such a large debt load. During the quarter, Paramount lined up banks and other institutional investors to provide bridge financing to help pull off the transaction, the company said.

“We’re pleased with the momentum and will continue to take the necessary steps to bring this deal to completion,” Ellison told analysts.

Late last month, Warner Bros. Discovery stockholders overwhelmingly voted in favor of the deal, which will pay $31 a share to Warner investors. The company now must secure regulatory approvals in the U.S. and abroad, and that process is well underway, Paramount said.

Paramount has asked the Federal Communications Commission for permission to exceed a cap on foreign ownership for U.S. media companies. Ellison’s company is expecting $24 billion from three Middle Eastern royal families, who would become part owners of the combined entity. Those total funds will represent about 49% of equity in that new company, exceeding the current foreign ownership cap of 25%.

More than 4,000 filmmakers, actors and industry workers, including Bryan Cranston, Connie Britton, Kristen Stewart, Jonathan Glazer and Jane Fonda, have signed an open letter asking California Atty. Gen. Rob Bonta and other regulators to block the deal, saying it “would reduce the number of major U.S. film studios to just four.”

Late last week, a small group of consumers sued to block Paramount Skydance’s acquisition of Warner Bros. Discovery and unwind Ellison’s Skydance Media’s takeover of Paramount, alleging that both deals reduce marketplace competition.

For the January-March quarter, Paramount’s earnings beat Wall Street’s expectations. Revenue grew 2% to $7.3 billion compared with the first quarter of 2025.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion, helped in part by growth in its streaming services unit. Paramount+ increased its revenue by 17% to nearly $2 billion, compared with the year earlier period when it generated $1.7 billion. The service added 700,000 subscribers, bringing the total to nearly 80 million.

With Warner’s HBO Max streaming platform, the combined service would boast more than 200 million subscribers.

Paramount reported first-quarter net earnings of $168 million, or 15 cents per share, compared with $152 million in 2025, which occurred before Skydance acquired the media company in August.

Executives pointed to “Scream 7,” a late February release that has topped $200 million in global ticket sales, as a success story. Studio revenue grew 11% to $1.28 billion for the quarter.

Television networks revenue declined 6% to $3.7 billion as Paramount’s cable channels continue to contend with the loss of cable cord-cutters, which reduces the company’s collections from pay-TV providers. Nonetheless, Paramount pointed to the strength of Sheridan’s “Landman,” starring Billy Bob Thornton, Ali Larter, Sam Elliott and Demi Moore, and the strength of the CBS television network, which currently has 13 of the broadcast industry’s top 20 prime-time shows, including “60 Minutes,” “Marshals,” and “Tracker.”

The company told analysts it would achieve $30 billion in revenue for the full year and $3.8 billion in adjusted EBITDA. Paramount said it would also make $2.5 billion in cost-cuts by the end of this year and reduce expenses by $3 billion in 2027.

Paramount said it ended the quarter with $1.9 billion in cash and cash equivalents. It also was carrying $15.5 billion in debt. The company had to draw $2.15 billion from its revolving credit facility to pay Netflix a $2.8-billion termination fee that Warner Bros. Discovery had agreed to pay under a previous deal to sell the company to Netflix.

Paramount released its earnings after Monday’s trading day. Its shares closed at $11.13, basically unchanged.