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Producer takes over former Quixote studio in Pacoima as Hollywood struggles

Production services vendor Quixote stunned Hollywood in April when it said it was winding down most of its Los Angeles soundstage business, delivering another blow to an industry already buffeted by steep losses in film and TV production.

Now, one of those facilities is attempting to stage a comeback.

Film and TV producer Manny Halley said he has taken over a 125,000-square-foot former Quixote North Valley complex on Montague Street in Pacoima under a 25-year lease with an option to buy, and plans to reopen it this fall under the name Imani Studio. The land is owned by Rexford Industrial Realty, which is not a party to the production business.

Halley’s credits include the “True to the Game” film trilogy that featured Vivica A. Fox, and the BET reality TV series “Keyshia Cole: The Way It Is,” which ran on BET from 2006 to 2008.

In an interview, Halley declined to disclose the price he paid, but said the lease is worth more than $25 million and that the cost to build the facility three years ago was about $19 million. The deal was financed with capital from his Imani Media Group.

“Right now is a unique time for independent producers because we don’t have to sit back and wait for a studio,” he said. “And in order for us to build a library and keep going, we have to keep costs down. So having your own stage is going to keep costs down.”

Producer Manny Halley has taken over ownership of one of the former Quixote North Valley studio facilities in Pacoima.

Producer Manny Halley has taken over ownership of one of the former Quixote North Valley studio facilities in Pacoima.

(Dae Howerton and Dallas J. Logan)

Halley said he was also motivated by the ongoing production crisis in L.A. and the continued loss of industry jobs. His company has shot 18 productions in California, 14 of which received a state production incentive.

“Somebody’s got to believe in Hollywood,” Halley said. “It’s a sad industry right now, and I want to change it.”

He is making a long bet on a market a much larger company has struggled with. Former owner Hudson Pacific announced it was shutting down most of its L.A. soundstages as well as operations in Atlanta as part of a cost-reduction move.

The Los Angeles-based real estate company bought Quixote in 2022 for $360 million, saying at the time that the acquisition would address the growing demand for soundstage space. Quixote was originally founded in 1995.

Though L.A. area soundstages had average occupancy rates of about 90% from 2016 to 2022, their business plunged in 2023 amid the work stoppages of the writers’ and actors’ strikes, according to data from the nonprofit FilmLA, which tracks on-location shoot days in the Greater L.A. area. In 2024, the average occupancy rate was 63%.

“Keeping production infrastructure active and investing in California’s capacity to support film and television is essential to our long-term competitiveness,” California Film Commission Executive Director Colleen Bell said in a statement. “Facilities like this help keep productions here, sustain good-paying jobs, and support the thousands of businesses and workers that make up our entertainment economy.”

Halley said he plans to invest $2 million to $6 million into the facility, including additional staff and LED volume walls. He retained three employees to help run operations and hopes to hire others who previously worked there.

He said he plans to use the facility, which has four soundstages, to shoot his own shows and movies, but also intends to rent out space to other productions, including student projects.

“I just want to give everybody their opportunity to shine,” he said. “I want to give them their own playing field to create and make their visions come to life with affordable stages.”

But even if outside productions don’t rent the space, he said the facility could sustain itself on his company’s projects. Imani Media Group has a distribution arm that has worked with Amazon, Tubi and the major theater chains.

By late September, Halley said he intends to start shooting a “True to the Game” TV series at the Pacoima facility, as well as the BET comedy “Lot Patrol,” which the network recently picked up for an additional five episodes.

“Supporting Black ownership and entrepreneurship across the entertainment industry remains deeply important to BET,” Brian Rikuda, BET’s executive vice president of enterprise growth strategy, business operations, and programming strategy, said in a statement. “As Manny Halley expands Imani Studios into a 125,000-square-foot production home, we’re proud to continue our partnership rooted in a shared vision to create culturally impactful entertainment and expand opportunity in our industry.”

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Yayoi Kusama, who splashed polka dots across the art world, dies at 97

Japanese artist Yayoi Kusama, who splashed her signature polka dots on paintings, sculptures and museum installations around the world, has died, her company said Thursday. She was 97.

Kusama died Aug. 14 at a hospital in Tokyo, Yayoi Kusama Studio said in a statement.

Kusama, one of Japan’s most respected contemporary artists, was widely exhibited around the world, including at the Museum of Modern Art and the Whitney Museum of American Art in New York.

Repetitive motifs in various shapes were her trademark, resembling netting, swirls or worms, but most often dots, dancing proudly on her canvases or as sparkling balls or dots of light in her installations in all their vibrant, psychedelic glory.

Yayoi Kusama, Infinity Mirrored Room –The Souls of Millions of Light Years Away, 2013.

Yayoi Kusama’s “Infinity Mirrored Room — The Souls of Millions of Light Years Away,” 2013.

(EPW Studio / David Zwirner, New York)

In 2017, the Los Angeles Times wrote about the first U.S. museum survey of the Tokyo artist’s Infinity Mirror Rooms at the Broad. The rooms generated “Hamilton”-scale hype.

Kusama told The Times: “I believe that people are attracted by the infinite mysterious beauty that the artwork has. I am also attracted.”

Now two of Kusama’s pieces on permanent display at the Broad draw, on any given day, a line of visitors to see the immersive art pieces for mere moments. “Infinity Mirrored Room — The Souls of Millions of Light Years Away,” on the first floor, requires reservations to stand for one minute in a small mirrored room full of bouncing LED lights that make you feel like you’re floating in the Milky Way. “Longing for Eternity,” on the third floor, also draws lines but does not require a reservation to peek inside a chamber that gives off a purple disco dance floor vibe.

Both conjure a sense of awe, of boundless imagination. Millions have entered the “Souls” room, snapping photos and video that elicit floods of Instagram likes, since its opening in 2017.

Kusama, known for her fiery red wig, lived by choice in a Tokyo psychiatric hospital for decades. She had opened her own museum in Tokyo yet remained very private, granting limited interviews.

Kusama insisted she drew the way she saw the world — covered with spots, part of the hallucinations she said she had from childhood. She was one of the first Japanese women to go to New York to pursue her art, in 1957.

Although soft-spoken and shy in her mannerisms, she was always unabashedly bold in the assertion of her dotty vision, not only in sticking to the style for decades but also in making it accessible to the masses.

In her later years, as the times caught up with her art, she enjoyed fame. She signed on with fashion brands such as Louis Vuitton as well as other licensed products including teacups, T-shirts and key chains with her illustrations and replicas of her likeness that were used in show windows and other marketing.

In 2008, Christie’s auctioned her work for $5.8 million. In 2016, she won the most prestigious award Japan gives its artists, the Order of Culture.

Upon receiving the award, she told reporters she was more determined than ever to pursue her art, stressing that the sincerity and devotion she had demonstrated in her personal life were crucial parts of her artistic legacy.

“I feel there is little left in my life, but I am now still fighting to the death for my art,” she said. “I am giving all I have so that many people will continue to be interested in my art, even after I am dead.”

Kusama was called pop, avant-garde, feminist, just to name some of the categories thrown at her, most of which Kusama brushed off as not quite representative of her art.

She was born in a middle-class family but felt misunderstood, as her parents wanted her simply to get married. They wanted to buy her kimono, not paints and brushes. She knew she had to get away. She chose America.

When she arrived in New York, the fad was “action painting,” characterized by dribbles, swooshes and smears, not dots. She suffered years of poverty and obscurity. But she kept painting dots.

She put circles of paper on people’s bodies, and once a horse, in “happening” antiwar performances in the late 1960s, which got some people arrested for obscenity but helped get media attention for her art. While in New York, she befriended artists including Andy Warhol, Georgia O’Keefe and Joseph Cornell, who praised her innovative style.

Over the years, Kusama has made quirky but stunningly celebratory works such as “Macaroni Girl,” a female figure plastered with macaroni, which expresses the fear of food; “The Visionary Flowers,” giant sculptures of twisting tulips; and “Mirrored Corridor,” a room with mirrors that delivers an illusion of a field of phallic protrusions speckled with dots.

Kusama, who has also made films and published several novels, said she wasn’t sure where she got her ideas. She just picked up her brush and started drawing. The process was so mysterious sometimes she surprised herself, she told the Associated Press.

“I think, ‘Oh, I drew that? I was thinking that,’” she said.

She appeared happy to have her art be the focus of media attention and praise, reading one of her poems to a reporter or tackling her artworks with gusto for photos.

But she was also a charmingly disarming mix of vulnerability and defiance — at one moment declaring herself “an artistic revolutionary” and then, the next, mumbling: “I am so afraid, all the time, of everything.”

Times staff writer Deborah Vankin contributed to this report.

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Mark Walter’s TWG Global defends Dodgers financing and Lakers sale

TWG Global — the holding company of Dodgers owner Mark Walter — rejected allegations of financial impropriety in the purchase and operation of the Dodgers and reiterated the team is not for sale.

At a time insurance regulators and federal investigators are looking into allegations that insurance companies under Walter’s umbrella did not properly disclose and conduct transactions between other companies he controls, and after Walter sold his controlling interest in the Lakers at a record $12.5 billion valuation, potential bidders have monitored whether the Dodgers might be sold as well.

In a statement Tuesday, TWG Global decried “multipronged attacks against TWG … by unnamed sources with self-serving interests” and said no insurance policyholder has been hurt as a result of the company’s financial transactions.

“There is no victim here,” the statement said. “No one has been harmed, and no one has claimed they were harmed.”

In 2012, when Walter and his partners bought the Dodgers for $2 billion, The Times reported the use of $1.2 million from Guggenheim Partners insurance funds into the deal. At the time, rival bidders expressed concern over the unusual financing, but state insurance regulators cleared the deal and Major League Baseball approved it.

“The transaction was subject to a full investigation conducted by an outside law firm on behalf of insurance regulators from multiple states,” the statement said, “which identified no irregularities and resulted in no further action.”

Even with the Dodgers issuing over a billion dollars in deferred contracts and amid whatever transactions might have been conducted between TWG-related insurance companies and the Dodgers’ affiliates — including ones that hold the team’s television rights and ticket revenues — the Dodgers’ ability to fund player contracts is not at risk, according to the statement.

“The Dodgers have the highest revenue in baseball, and it significantly exceeds the team’s obligations to its players,” the statement said.

The statement reiterated that, as Dodgers president Stan Kasten has said, “the team is not being sold and no sale process has been initiated.”

The Dodgers, if sold, could likely command a price in the range of $10 million to $13 million, industry analysts have told The Times.

The Lakers sold at a record price for a North American sports franchise, although industry analysts have said a competitive bidding process likely would have resulted in an even higher sale price.

Said the statement: “Mr. Walter was approached by Josh Kushner and his team about this transaction and the agreement represents a 25% premium to the price paid by Mr. Walter less than a year ago (and an even higher premium to the $5.0 billion valuation Mr. Walter paid in 2021) — hardly a ‘fire sale.’”

The statement added: “TWG is not looking to sell its sports assets at ‘fire sale’ prices to raise capital for its insurance operations.”

TWG said it is “working cooperatively and in partnership with the Delaware Department of Insurance” to resolve the regulatory issues and “is committed to working with the U.S. Department of Justice and the Securities and Exchange Commission to resolve their inquiries.”

“TWG stands firmly behind the integrity of its business,” the statement read. “Despite what has been reported, there has been no fraud.”

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Shaky future of Spectrum’s Lakers channel adds more drama to the team’s sale

For more than a decade, Los Angeles’ premier sports teams — the Lakers and the Dodgers — have relied on big-ticket TV rights deals to boost their operations and player payrolls.

But major changes are looming.

The prospective new Lakers owners — investor Joshua Kushner and former Walt Disney Co. chief executive Bob Iger — will inherit an uncertain long-term television picture for the team when they assume control of the storied franchise.

Charter Communications’ Spectrum service broadcasts Lakers games on its SportsNet cable channel. The Lakers are set this fall to enter the 15th year of their long-term, $3-billion agreement with the cable company to bring regular season action to local viewers.

But Charter executives have discussed exiting that relationship, which guarantees the team about $200 million a year in revenue, according to people familiar with the company’s plans who were not authorized to comment.

Charter months ago retained investment bankers to find a buyer for El Segundo-based Spectrum SportsNet, which the company runs in tandem with the Dodgers-owned channel, SportsNet LA.

Charter’s interest in jettisoning the channel as fewer consumers watch cable TV has sparked fears within the Lakers organization about the stability of the critical revenue stream, according to a person familiar with the situation who was not authorized to speak publicly.

The Lakers and Kushner’s investment firm, Thrive Capital, declined to comment.

Stamford, Conn.-based Charter on Thursday finalized its $34.5-billion purchase of Cox Communications, making Spectrum the dominant internet and television provider in Southern California, covering Santa Barbara to the Mexican border.

In response to questions from The Times, Charter Chief Executive Chris Winfrey acknowledged the turmoil surrounding sports channels.

“The regional sports network business is significantly challenged,” Winfrey said during a Thursday conference call with reporters to highlight the Cox merger. “Most of the regional sports networks have gone bankrupt [but] Spectrum has so far remained committed.”

The company is seeking a new arrangement, but Winfrey declined to discuss ongoing conversations with the Lakers or the team’s potential proprietors after Lakers owner Mark Walter, who is facing a federal criminal investigation, abruptly decided to sell the team in a deal valued at $12.5 billion. A spokesperson for Walter and his holding company has stated that they are cooperating with authorities and expect the matter to be resolved “favorably.”

Spectrum, Winfrey said, “would love to find solutions” to make its relationship with the Dodgers and Lakers more acceptable. Over the years, the company has bled hundreds of millions of dollars providing the L.A. sports channels.

“We believe in the local teams, the Lakers and the Dodgers,” Winfrey said. “It’s very important to us. It’s very important to our customers — but that doesn’t mean that it’s a great economic agreement with us.”

The Lakers’ TV contract runs through 2032. The Dodgers’ arrangement with Spectrum extends to 2038, but clouds have been gathering for years as consumers find new ways to watch sports.

Millions of consumers over the last decade have migrated from pricey packages offered by Spectrum and other cable companies to lower-cost streaming options. Spiraling monthly cable bills — largely driven by increases in sports rights fees — have made cable TV less attractive to ordinary subscribers.

A pedestrian walks past Spectrum SportsNet

A pedestrian walks past Spectrum SportsNet in El Segundo on Aug. 13.

(Genaro Molina / Los Angeles Times)

Cable TV audiences are shrinking and major sports leagues, including the NBA, recognize the younger viewers they desperately want to reach primarily get their entertainment on apps. Broken TV economics have prompted the NBA to begin making plans to build a centralized streaming platform for fans to watch basketball.

“It’s mostly the result of cord-cutting and just fewer homes receiving these networks,” said Scott Robson, a principal analyst with S&P Global Market Intelligence. “The league [would like] to create a centralized streaming hub and bring all 29 domestic clubs under one umbrella, whether that be through YouTube or some other streaming partner.”

But such plans could mean sharing revenue among the various teams, which could mean less money for large-market clubs such as the Lakers and world-champion New York Knicks, which benefit from their lucrative local TV contracts.

Earlier this year, Main Street Sports Group alerted the NBA, National Hockey League and Major League Baseball that it would cease operations, leaving teams scrambling to cobble together TV coverage for their games.

The group operated FanDuel-branded channels (previously Bally Sports) following the 2023 Chapter 11 bankruptcy reorganization of Diamond Sports Group. Those channels have long featured Clippers and Kings games.

Pressure was lifted off the NBA when the league struck its latest round of national TV contracts — $77 billion worth of deals that, beginning last fall, spread basketball games across ESPN, ABC, Amazon Prime Video, NBC and NBCUniversal’s Peacock streaming service.

The current NBA contracts “provided more money than the previous deal, and as a result, the teams rely less on the local rights payments than they have in the past,” Robson said.

Headwinds for the local sports channels, including those operated by Spectrum, pose the latest rocky chapter for Los Angeles sports fans.

It’s a reversal of fortune from a quarter-century ago, when media giants, including Rupert Murdoch’s Fox, recognized there were huge profits to be made by launching regional sports networks.

Murdoch even owned the Dodgers for a stretch to corner the market on what was then a Wild West shoot-out among TV programmers to launch cable channels.

Charter’s predecessor, Time Warner Cable, wanted in on the action. In 2011, former Time Warner Cable executives hammered out the 20-year agreement with the Lakers, then owned by the late Jerry Buss. Two years later, Time Warner doled out an even richer $8.3-billion deal to the Dodgers, which at the time were under new ownership — Walter and his partners with Guggenheim Baseball Management.

The fees were so steep that other pay-TV providers, including Cox, Dish Network and, for many years, DirecTV, refused to carry the Dodgers channel — leading to one of the longest blackouts in sports TV.

Charter took over the two channels in 2016, when the company absorbed Time Warner Cable. Winfrey, on Thursday, made it clear he was not a fan of those deals, calling them “something that we inherited … not something we did on our own.”

Over the years, the company has lost hundreds of millions of dollars. Last year, Spectrum began offering a streaming-only option to expand the audience for Dodgers’ games. Spectrum subscribers can also watch Lakers’ games on a streaming app.

Last fall, Charter retained boutique bank the Raine Group to find a buyer for the Lakers channel. It’s not clear whether Charter would like to shed its deal with the Dodgers organization, which owns SportsNet LA.

Iger is well familiar with the fragmented sports landscape and economics after years overseeing ESPN and ABC.

Spectrum is seeking “innovative ways … to find a better long-term solution,” Winfrey said. “We’re trying to be constructive and respectful on all fronts.”

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Early Motown songwriter Janie Bradford Hobbs dies at 87

Early Motown songwriter Janie Bradford Hobbs, who helped pen hits including “Money (That’s What I Want)” and “Too Busy Thinking About My Baby,” has died following an extended illness at a Los Angeles hospital, her family said Saturday. She was 87.

Bradford Hobbs was born in Charleston, Mo., and later moved to Detroit.

She was introduced in the late 1950s to Motown founder Berry Gordy by neighbor and singer Jackie Wilson. She joined Motown as a receptionist in 1958 and like many of the company’s employees took part in the creative process that helped make Motown a music industry powerhouse.

She and Gordy co-wrote “Money (That’s What I Want).” The song was recorded in 1959 by Barrett Strong and became an early hit. It was covered by the Beatles, which also become a hit.

“Too Busy Thinking About My Baby” first was recorded by The Temptations and later became a hit for Marvin Gaye. Bradford Hobbs also wrote songs for Stevie Wonder, the Supremes, Martha & The Vandellas and others.

“Janie was there with me from the very beginning, before there was even a Motown, and she will always hold a very special place in my heart and in the Motown family,” Gordy said in a statement.

“Janie was one of a special group I have always thought of as the original Motown family — the unsung heroes who believed in the dream before anyone knew what Motown would become,” Gordy continued. “She was one of the people who helped make Motown what it became.”

Bradford Hobbs later became head of writer relations for Jobete, Motown’s publishing company. After leaving Motown, she founded the annual Heroes and Legends Awards. The event spanned about 30 years, honoring music stars and awarding scholarships, according to her family.

She is survived by her husband, Wardean Hobbs; daughter, Nicole Hobbs; son, Lance Finney; and two grandsons.

Williams writes for the Associated Press.

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Dodgers president Stan Kasten: ‘Dodgers are not being sold’

Dodgers president Stan Kasten wants to make it clear that majority owner Mark Walter will not sell the team.

Following Walter’s decision to sell his majority stake in the Lakers, questions about his majority ownership of the Dodgers were raised amid his company’s financial difficulties, which include a federal probe of his businesses. But Kasten said it will have no effect on Walter’s majority ownership of the Dodgers.

“The Dodgers are not being sold,” Kasten said. “They’re not going to be sold. They’re not for sale. There’s no process that has been started to sell [the franchise]. Period. … I just wanted this to be clear because this question keeps coming up. I understand the questions; I do. The Lakers thing was what we call sui generis, one of those one-of-a-kind things. Really has nothing to do with what’s happening with [the Dodgers] or the other teams.

“I wanted you to hear it definitively: We are not selling the Dodgers. We are continuing with our plans going forward, like we always have had them. This comes from Mark. He’s gung-ho about continuing to try to win, again, including next year, subject to whatever next year’s climate looks like.”

Kasten added that he doesn’t expect the Dodgers’ operations to be interrupted, describing the franchise as “very stable, well-managed, and [with] very solid ownership.”

“I know nothing involving the Dodgers is part of the investigation,” Kasten said. “I’m promising you, when it’s over, you’re going to realize [things] are being mischaracterized. You don’t have to trust me, but I’m telling you.”

When Kasten was asked about reports Walter is trying to sell his stake in English Premier League team Chelsea FC and tried to cash out of lucrative TV deals with Charter Communications, he said they were mischaracterized.

“Those things don’t go together for a bunch of reasons I’m not going to get into today,” Kasten said.

Kasten took a similar tone when asked about reports of Walter having to repay insurance companies.

“I’m not in that part of the investigation,” Kasten said. “Things are going on behind the scenes, obviously, in connection with that. I’m not privy to all of them, don’t need to know, don’t want to know. But one thing we are all certain about: the sports portfolio is going to remain intact.”

Walter has additional ownership stakes in the Sparks, the Cadillac Formula One team, the Professional Women’s Hockey League and the Billie Jean King Cup tennis event.

“I can tell you from the guy running the team, knowing how the business runs and what it can support in terms of revenues and expenses — the Dodgers aren’t going anywhere,” Kasten said. “I feel that very strongly, and Mark feels even stronger than I do. I’m 74. I don’t know how long I’m going to be running it, but Mark, I think, is going to be running it a lot longer.

“I think Mark has done an extraordinary job as an owner, and all he’s ever cared about is providing the best experience in order to make us more money, to make this project successful,” Kasten added. “I think so far it has been; I expect that to continue far into the future.”

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If Dodgers are put up for sale, Patrick Soon-Shiong is interested

Mark Walter is not selling the Dodgers, his people say. Stan Kasten, the Dodgers’ president, said it again Friday. The team, as a Los Angeles Times headline put it, is the “crown jewel” of Walter’s sporting empire.

Walter was not selling the Lakers, either, until he suddenly did last week. And, amid a cash crunch triggered by a federal investigation into insurance firms his companies control, potential bidders for the Dodgers are monitoring the situation closely.

If Walter were to sell the Dodgers, a long line of interested parties could include the runner-up when he bought the team in 2012: Patrick Soon-Shiong, the owner of the Los Angeles Times.

On Friday, Soon-Shiong said through a representative that he would be interested in leading an investment group should Walter decide to sell the team.

“We respect Mr. Walter, and we want to make it clear we have not spoken with him,” said Chuck Kenworthy, the family attorney for Soon-Shiong. “If at some point he would like to discuss the Dodgers, we would be very open to talking.”

Walter’s TWG Global did not immediately return a request for comment.

The Dodgers could command between $10 billion and $13 billion — at the higher end, three times as much as the record sale price for a major league team — a high-ranking industry source told The Times on the condition of anonymity.

In 2012, Soon-Shiong joined hedge-fund titan Steve Cohen in trying to buy the Dodgers, with Cohen as the controlling partner. Walter and his partners won the bidding at $2.15 billion, well above the $1.6 billion runner-up bid of Soon-Shiong and Cohen.

In 2020, Cohen bought the New York Mets for $2.4 billion. The record price tag for a major league team: $3.9 billion for the San Diego Padres, officially sold this week to an investment group led by a married couple: Jose E. Feliciano, the founder of Clearlake Capital in Santa Monica, and Kwanza Jones, an artist and enterpreneur.

The record price tag for any North American sports team: $12.5 billion, the valuation of the Lakers in the deal announced last week in which Walter agreed to sell to a group fronted by former Disney chief Bob Iger and venture capitalist Joshua Kushner.

Insurance regulators and federal investigators are looking into whether certain financial transactions between various entities controlled by Walter were properly disclosed to investors and compiled with regulations designed to protect them.

The cash — from the sale of the Lakers and other assets — can help pay off loans under scrutiny by regulators. It is uncertain whether that would satisfy the federal agencies probing potential wrongdoing. No charges have been filed and investigations often conclude without charges.

Soon-Shiong, a biotech billionaire, bought The Times in 2018. He bought Magic Johnson’s 4% stake in the Lakers in 2010. Kenworthy told The Times on Thursday Soon-Shiong does not intend to sell his stake in the team.

In 2012, Soon-Shiong explored buying AEG, the sports and entertainment company that owns the Kings, the Galaxy and Crypto.com Arena. AEG owner Phil Anschutz ultimately decided not to sell.

Soon-Shiong considered buying the Angels in 2022, in the window between owner Arte Moreno announcing he would explore selling the team and deciding the following year that he would not sell.

Soon-Shiong is bringing the Global Esports Games to Los Angeles in December. He also has bought a Major League Volleyball expansion franchise that is scheduled to start play in Los Angeles next year.

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Key takeaways from investigation into Edison’s role in Eaton fire

Recently revealed evidence from government investigators and court filings renewed questions about Southern California Edison’s claim that it operated its electrical grid safely before last year’s deadly Eaton fire.

Most records surrounding the fire’s cause have been sealed at the request of Edison and plaintiff attorneys. Yet new details revealed in court show that critical fire prevention equipment needed repair before the blaze and that vegetation under the tower where it ignited hadn’t been trimmed for years.

Los Angeles County and state fire investigators cited eight violations, including three of California’s criminal code, in their report released on Aug. 4. The details were blacked out as the district attorney continues an investigation into the devastating fire.

“We don’t believe there is a basis for criminal liability and we will cooperate with any review,” said Kathleen Dunleavy, an Edison spokeswoman.

The investigators said in the report that the Jan. 7, 2025 inferno, which killed 19 people and destroyed more than 9,000 homes and other structures, was caused by electrical arcing on an out-of-service transmission line in Eaton Canyon, which caused hot metal fragments to fall into the dried vegetation below.

Here are key takeaways from the investigative report and recent court filings by lawyers representing fire victims:

Edison didn’t turn off power on its Eaton Canyon transmission lines, despite emergency conditions.

Before the fire, the National Weather Service predicted a “life-threatening” windstorm, investigators wrote in their report released Aug. 4. Santa Ana wind gusts were forecast to reach speeds of 60 to 80 miles per hour, with peak gusts of 90 miles per hour in the mountains.

Earlier that day, Gov. Gavin Newsom declared a state of emergency because of an out-of-control fire that was burning homes in Pacific Palisades.

Despite those conditions, Edison kept power flowing through its high-voltage transmission lines built in the mountains above Altadena. Investigators noted that wind gusts at a weather station about a half-mile from the Edison tower where the fire started recorded gusts up to 68 miles per hour just before the first flames at 6:11 p.m. By 7, gusts were up to 85 miles per hour.

Dunleavy said the conditions did not meet the company’s internal standards for shutting off the lines.

“SCE was actively monitoring the transmission lines in Eaton Canyon on Jan. 7 and none of these lines met our de-energization criteria,” Dunleavy said.

Safety equipment on the out-of-service line was damaged before the fire but not fixed.

Edison had installed safety equipment at both ends of the out-of-service, unconnected transmission line in Eaton Canyon, including at the pylon known as Tower 208 where the fire ignited. But on the night of the fire, the equipment was broken, according to a June court filing.

The equipment was designed to send any unexpected power on the out-of-service line safely into the earth. The grounding equipment was necessary because the idle Mesa-Sylmar line ran parallel to 12 energized high-voltage lines, creating the danger of induction.

Induction happens when electromagnetic fields cause power on energized lines to jump to nearby idle equipment.

At Tower 208, a component known as a compression paddle was not securely bonded to the pylon, allowing debris to form and creating a dangerous air pocket, the filing said. The paddle was meant to be secured with four bolts, but only one bolt was used.

Government fire investigators also found broken equipment at one of the Mesa-Sylmar towers during a tour of the site with Edison after the fire. According to their report, investigators observed “the center conductor dangling free from the bridge section of the tower; it appeared that the remaining two conductors were not bored down to the tower bridge.”

The investigators said they discussed the equipment “abnormalities” with an Edison lineman and lawyer on the tour. “The Lineman said that they were not new and were like this last year; he was also unsure why they were not corrected when it was inspected,” the investigators wrote.

Asked why the equipment was not fixed, Dunleavy said, “We’re looking into that.”

She said the company strives to have a strong maintenance and inspection program and still was performing post-fire examinations and testing.

Edison kept the century-old, out-of-service Mesa-Sylmar line in place for decades, despite knowing idle lines could reenergize and spark fires.

Utilities have known for decades that unused lines can become energized from nearby electrified equipment through the induction process.

To teach employees about the danger, Edison created a training video featuring a 2007 incident in which a line known as the Kramer-Coolwater circuit was de-energized to allow work by a crew. The line became reenergerized while laying on the ground and started several fires, according to a retelling of the video in a July court filing by lawyers representing victims. Later that day, the crew’s foreman was injured when he touched the line.

Eleven years later, the Kramer-Coolwater circuit was unconnected from the grid, similar to the line in Eaton Canyon. Yet the line was electrified by induction from adjacent lines again in 2018, electrocuting a lineman who touched the conductor, the court filing said.

The company has said it kept the line in place even though it hadn’t carried power since 1971 because executives believed it could be used in the future.

Dunleavy said the induction event in the training video was different from what appears to have happened on Jan. 7 with the Eaton Canyon transmission lines.

“We had never seen an idle, de-energized transmission line cause an ignition,” she said.

Edison failed to clear vegetation below the tower where the fire ignited.

The investigators’ report said the fire ignited when electrical arcing on the idle line caused hot metal particles to fall into “the receptive fuel beds consisting of dry vegetation” below the tower.

The June court filing includes details from Google Earth images showing that the vegetation under Tower 208 had not been trimmed since at least 2021. Leaving the brush to grow violated Edison’s safety standard for “structure brushing,” the filing said.

Edison explained structure brushing in an article last year, describing how it cleared all vegetation around certain equipment, creating a 10-foot barrier to reduce the fire risk.

Asked why Edison let brush grow below the idle line, Dunleavy said, “We inspect and maintain all our equipment according to existing regulations and laws.”

Edison has sued L.A. County and other public entities, saying that their failures, including not clearing brush and delayed evacuation warnings, increased the fire’s destruction.

A fight over accountability

The first jury trial looking at whether Edison acted negligently in igniting the fire is scheduled to begin Jan. 25.

Later, state regulators will evaluate whether the company acted “prudently” in its actions related to the fire’s start.

Under a 2019 law brought by Newsom to protect utilities from bankruptcy, the companies automatically are deemed to have acted prudently if regulators sign off on their wildfire prevention plan.

Newsom’s safety regulators approved Edison’s plan just before the Eaton fire. That means Edison will be fully reimbursed for the billions of dollars in Eaton fire damages by a state fund that Newsom’s legislation created unless outside parties can prove Edison acted imprudently, negligently or worse.

“We continue to believe we will make a good faith showing of prudency,” Dunleavy said.

Newsom is working behind closed doors on legislation to further protect Edison and the state’s two other big for-profit electric utilities from the cost of wildfires caused by their equipment, the Times reported this year.

The three companies’ equipment ignited at least seven of the state’s 20 most destructive wildfires, according to CalFire. The Eaton fire was the state’s second-most destructive fire after the 2018 Camp fire, which killed 85 people and destroyed most of the town of Paradise. That fire, according to investigators, was ignited by an old transmission line owned by Pacific Gas & Electric.

The survivors of Eaton and other fires are fighting Newsom’s plan, saying it would leave California more vulnerable to utility-sparked fires.

“The real danger is what will happen to Californians if we further strip away these corporations’ financial incentives to prevent catastrophic fires,” Joy Chen, executive director of Every Fire Survivor’s Network, wrote in an analysis sent to state lawmakers this week.

“These are not innocent companies overtaken by climate change, nor is this an abstract problem of ‘wildfire liability,’” she wrote. “It is a continuing pattern of catastrophic corporate failure.”

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LA County warns that Paramount-Warner merger could erase thousands jobs

Paramount Skydance’s proposed $111-billion takeover of Warner Bros. Discovery could result in 4,500 jobs eliminated in Los Angeles over a three-year period, according to a new report.

Los Angeles County supervisors earlier this year wanted to explore the potential economic impact of David Ellison’s proposed union of two historic Hollywood studios. The report, completed this week by CVL Economics, paints a sobering picture of the potential aftermath of the debt-laden deal, including the prospect of an estimated $1.26 billion in lost wages.

“Los Angeles County’s film and television economy is already undergoing a significant structural contraction,” the report said. “The proposed merger of Warner Bros. Discovery and Paramount Skydance introduces an additional source of risk into that already changing market.”

California Atty. General Rob Bonta is leading a coalition of 12 states attempting to block the merger on antitrust grounds. A trial has been set for March. Paramount and other groups, including cinema chain owners and some Hollywood unions, have agitated for a settlement to curtail months of uncertainty over whether the deal will go through.

The proposed merger has been controversial in Hollywood due to fears of widespread layoffs. The Writers Guild of America has brought its own lawsuit to thwart the deal.

The goal of the county’s report was to provide “a comprehensive assessment of the merger’s production workforce implications,” amid the ongoing decline of L.A. based film and television production work. Los Angeles has witnessed the elimination of more than 50,000 entertainment jobs since 2022.

The 120-page report, from the county’s Department of Economic Opportunity and Film Office and requested by Supervisor Lindsey Horvath, found that more than 15,000 corporate roles would be at risk, including an estimated 2,495 jobs based in Los Angeles County.

The two companies would have an overlapping workforce within its linear cable channel divisions, film and television studios, streaming operations and corporate functions, including marketing, technology and advertising sales.

“Effects on crews, crafts, post-production personnel, vendors, and production-serving small businesses,” could also be substantial, the report said.

Paramount, in a statement, said the report highlighted the industry’s troubles and made a case for the merger.

“LA County’s own economic report underscores what we have been saying all along: our industry is in decline, production is down and jobs are being lost — and lost for good if we don’t act,” Paramount said. “Our plan to invest $30 billion annually in production and release at least 30 films a year.”

That commitment, Paramount said, would lead to “more jobs over time, and ultimately, a stronger, more durable entertainment industry for generations to come.”

Paramount has received clearances from the U.S. Justice Department and 65 other regulators around the globe to complete the merger.

For now, Bonta’s lawsuit is standing in the way.

Paramount has promised investors the deal would lead to at least $6 billion in cost savings through the consolidation of operations. The company has said the merger would ultimately be good for consumers and workers because a combined Paramount-Warner Bros. would have greater resources to compete with tech giants that are investing heavily in entertainment.

But the report pointed to the high level of debt that Paramount would have to take on — nearly $82 billion — to buy the stock of Warner Bros. Discovery shareholders to finalize the takeover.

“If revenues underperform or planned savings prove more difficult to achieve, pressure to identify additional cost reductions could increase,” the report said.

The two companies already are carrying substantial interest costs due to their existing debt structures. “In the quarter ended June 30, 2026, the two companies reported a combined $712 million in operating income and $737 million in net interest expense,” the report said, meaning that the companies were producing less profit than what was needed to support their debt obligations.

Despite Paramount predicting cost savings and reduction in debt over time, “those savings will take several years to fully realize,” the report said.

Paramount Skydance CEO David Ellison.  (Photo by PATRICK T. FALLON/AFP via Getty Images)

David Ellison was hoping to wrap up his $111-billion merger with Warner Bros. by September.

(PATRICK T. FALLON/AFP via Getty Images)

Television production in Los Angeles could be especially vulnerable, in large part, because Paramount and Warner Bros. already have moved most of their feature film projects outside of L.A. High levels of TV production continues at Warner Bros. complex in Burbank and Paramount’s and CBS’ soundstages in Hollywood and Santa Clarita.

“The economic impact extends well beyond employment,” with an expected elimination of $547 million in tax revenue, including $78.6 million in local taxes, the report said.

It noted that Warner Bros. and Paramount films were “particularly employment-intensive.”

“Their theatrical releases carry 2.74 times as many screen credits as the average theatrical release, while their streaming films carry twice as many,” the report found.

The document also highlighted a pre-existing pull-back in production at the two studios in recent years — something that Ellison plans to correct.

Paramount was struggling to remain solvent prior to the Ellison family’s purchase of the media company last year. Warner Bros. had scaled back offerings following Discovery’s $43-billion takeover of WarnerMedia in 2022 as it struggled to contain the debt from that deal.

“Between 2019 and 2025, Warner Bros. Discovery and Paramount accounted for a net reduction of approximately 195 major U.S. releases,” the report said. At the same time, other major distributors combined “added about 67 projects.”

Ellison is looking to finalize his massive Hollywood deal — folding CNN, HBO, TBS, Food Network and the Warner Bros. film and television studios under Paramount — as quickly as possible. He must hold together Paramount’s coalition of financiers and manage rising expenses, primarily legal fees and escalating obligations to Warner shareholders.

The state attorneys general, including from Colorado, Oregon, Nevada, Washington and New York have argued that the blockbuster merger — the largest in Hollywood in decades — would violate the century-old Clayton Antitrust Act.

Paramount hoped the trial over Bonta’s lawsuit would begin in November but U.S. District Judge Araceli Martínez-Olguín set the trial for March 2.

If the deal goes forward, just four studios — a post-merger Paramount-Warner, Disney, NBCUniversal and Sony Pictures — would control 86% of movies that are widely released (in more than 3,000 movie theaters), according to the attorneys general lawsuit. Paramount has argued that projects from Amazon MGM, Netflix and Apple should be included because they compete with the traditional companies for talent and audiences.

Paramount-Warner Bros. would also own more than 50 cable channels, including HGTV, Animal Planet, BET, MTV and Comedy Central.

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ABC sues FCC, alleging Trump-fueled retaliation in TV license fight

The Disney-owned network said the agency’s action is an attempt to stifle free speech.

ABC went to court Tuesday in an attempt to halt the Federal Communications Commission’s early review of its TV licenses, claiming the move is an attack on the broadcast outlet’s right to free speech.

The Disney-owned network asked a U.S. District Court to issue a temporary restraining order to stop the FCC’s action. The agency says it is investigating ABC stations over whether the company’s diversity and inclusion policies are in violation of federal anti-discrimination laws.

But the suit alleges that the FCC is retaliating against ABC due to President Trump’s dissatisfaction with the network’s coverage of his administration. Trump has frequently threatened to have TV station licenses pulled when he believes he is treated unfairly on news and talk programs.

In late December, Trump posted on X that “If Network NEWSCASTS, and their Late Night Shows are almost 100% negative to President Donald J. Trump, MAGA, and the Republican Party, shouldn’t their very valuable Broadcast Licenses be terminated? I say YES!”

The suit claims the FCC “has not been shy about openly coercing ABC into changing its programming,” citing comments made last fall by FCC Chairman Brendan Carr about late-night host Jimmy Kimmel’s remarks about the president.

“We can do this the easy way or the hard way,” Carr said. “These companies can find ways….to take action…on Kimmel or there is going to be additional work for the FCC.”

Shortly after Carr made those remarks, two large TV station ownership groups had their ABC affiliates pull Kimmel off the air for a week after conservative blowback over the host’s comments regarding the shooting death of right-wing activist Charlie Kirk.

The licenses for eight ABC-owned TV stations, including KABC in Los Angeles, were originally scheduled for renewal between 2028 and 2031. The suit said the current review is “extraordinarily early” and “that timing underscores the Commission’s true purpose: coercing and retaliating against a network that refuses to bow to the Administration’s demands.”

Trump recently called for ABC’s TV licenses to be revoked after the network did not carry his July 16 prime-time Oval Office address on election fraud. Carr said the network’s decision would be taken under consideration in the license review process.

Broadcast outlets have long had the option to determine whether to carry a presidential address. ABC presented Trump’s speech on its news streaming platform, as did NBC.

Carr has also questioned whether “The View” should be classified as a news program, which is exempt from the equal-time rule for political candidates who appear as guests.

ABC has asked the FCC to rule on the status of “The View,” which received an exemption from the rarely enforced equal time provision in 2002.

ABC has maintained that “The View” books politicians based on newsworthiness and not partisanship.

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Business and labor square off in West Valley’s 3rd District L.A. City Council race

The next Los Angeles City Councilmember to represent the West San Fernando Valley will either be a former small business owner backed by the Police Protective League or a career public-sector staffer who has racked up a long list of endorsements from unions and Democratic lawmakers.

Tim Gaspar, 44, founded an eponymous insurance agency in the Valley, which he sold in 2021and is now campaigning full time to win the Third District council seat, according to campaign spokesperson Haley Townes. He was the top vote-getter in the June 2 primary, garnering 46.1% of the vote.

Barri Worth Girvan, 43, was a close second with 42.5% of the vote. She is the director of community affairs for Los Angeles County Supervisor Lindsay Horvath and previously held staff positions with former L.A. mayor Antonio Villaraigosa and former Democratic state senator Bob Hertzberg.

The winner of the Nov. 3 runoff will replace termed-out council member Bob Blumenfield, who recently endorsed Gaspar, as did Christopher Celona, the third-place finisher in the primary.

“We feel like those are the endorsements that resonate with voters here,” Gaspar told a group of voters at a recent campaign event.

Los Angeles CD3 City Council Candidate Tim Gaspar speaks with Dr. Lawrence Kaplan.

L.A. City Council Candidate Tim Gaspar speaks with Dr. Lawrence Kaplan during a Kids on the Spectrum Bowling League event at Lucky Strike Bowling Alley this month.

(Arwen Clemans/Los Angeles Times)

In an interview, Gaspar said the City Council could benefit from his business experience to counter members whose backgrounds are mostly in public policy or community organizing.

“They’re missing the business perspective,” he said. “Sometimes you need to do things that might be unpopular if it’s going to be something that benefits the greater good. A healthy economy is the tide that raises all ships.”

City Council District 3 candidate Barri Worth Girvan chats wth LAPD Capt. Rudy Lopez.

L.A. City Council Barri Worth Girvan chats wth LAPD Capt. Rudy Lopez while greeting voters during a recent neighborhood National Night Out event in Canoga Park’s Lanark Park.

(Gina Ferazzi/Los Angeles Times)

Worth Girvan, by contrast, says her years of experience in the public sector will ensure that she can best navigate City Hall to advocate for the district’s interests.

“Delivering core city services is my bread and butter,” she said in an interview. “If your trash isn’t picked up, if your trees aren’t trimmed, if your street lights aren’t working, if you pick up the phone to call 911 and nobody responds, then not only is your neighborhood not safe, but your city is not working for you.”

Gaspar has a huge lead in fund-raising, reporting more than $180,000 in donations to his runoff campaign through June 30, compared with about $31,000 for Worth Girvan.

In addition, companies and special interests including Airbnb, Uber, the California Apartment Association, the L.A. Police Protective League and IBEW Local 18 spent $1.39 million through independent expenditure committees in the primary race.

Airbnb spokeswoman Nicolette Velasquez said the candidates it backs, including Gaspar, are in favor of expanding short-term rental policies to allow homeowners to supplement their income by renting out their homes. Hotel companies and the unions representing hotel workers oppose such expanding the short-term rental market out of existing housing stock.

Worth Girvan asserts that her second-place finish in June was effectively “a virtual tie” given all the money companies and others spent to back Gaspar.

“We were massively outspent with that kind of money, but the voters clearly spoke, and we’re expecting an even broader electorate in the general,” she said.

Los Angeles CD3 City Council Candidate Tim Gaspar poses for a portrait.

Tim Gaspar outside the Lucky Strike Bowling Alley.

(Arwen Clemans/Los Angeles Times)

Gaspar’s contributors in the runoff include billionaire developer Rick Caruso and the Hollywood Chamber of Commerce.

Worth Girvan has picked up donations from state Assemblyman Mark Gonzalez (D-Boyle Heights), former Democratic state Assembly Speaker Anthony Rendon and former Los Angeles City Council member David Ryu, according to her filing.

She also touts endorsements from a long list of Democratic lawmakers, including state Sen. Ben Allen (D-Santa Monica) and Rep. Luz Rivas (D-North Hollywood)., and has strong backing from labor including the local chapters of the International Brotherhood of Electrical Workers and the Service Employees International Union and the including the Los Angeles County Federation of Labor.

“Barri was a clear choice for us,” said Devin Osiri, Chief of Staff at the Los Angeles County Federation of Labor. “Our unions have actually worked with her at all three levels of government. Her reputation, her professional resume from the Valley and her personal story are just more reflective of the LA Federation of Labor.”

The two candidates differ on housing policy.

City Council District 3 candidate Barri Worth Girvan meets voters.

Barri Worth Girvan meets voters at the National Night Out event in Canoga Park’s Lanark Park.

(Gina Ferazzi/Los Angeles Times)

Worth Girvan said she supports more housing development, particularly near transit lines, saying the West Valley “needs to do our part” to scale up construction and bring housing prices down.

Gaspar said District 3 is already doing its part to bring in new housing development in areas like Warner Center, and remains skeptical of increasing density in single-family home neighborhoods.

He opposes rent control and some of the city’s current tenant protections, and said at the campaign event that he has a “zero tolerance policy” for homeless encampments.

Both candidates say public safety is their top priority, and they support expanding the Los Angeles Police Department.

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What’s at stake for Dodgers’ owner Mark Walter as authorities probe his businesses

When Mark Walter, the Lakers controlling owner, flipped the storied team last week for $12.5 billion amid a federal probe of his businesses, it stunned the sports world but seemed to make financial and legal sense.

The Dodgers majority owner, who had bought his stake in the basketball team last year at a $10-billion valuation, likely netted a big payday from the sale to former Disney Chief Executive Bob Iger and venture capitalist Joshua Kushner.

And that’s money the billionaire can apply to pay down the debts of two troubled Delaware life insurers he owns that are under federal scrutiny.

It’s not at all clear whether the sale of the Lakers will have any effect on the ongoing investigations. Neither Walter nor his companies have been charged with any crimes.

TWG Global, Walter’s holding company, did not respond to a request for comment Friday, but a spokesperson for the company has previously stated that they are cooperating with authorities and expect the matter to be resolved “favorably.”

“Mark Walter and TWG have always acted in good faith, and those who have done business with Mark know him as honest and straightforward,” the statement said.

After receiving federal grand jury subpoenas in February, Delaware Life and Clear Spring Life and Annuity conducted internal investigations. They found that $21 billion in loans they made should have been recorded as extended to “related parties.”

Related parties have business or personal ties and transactions between them can have legitimate reasons, but they also pose potential conflicts of interest and require disclosure and typically extra regulatory scrutiny.

In the case of insurers, which hold premium dollars from policyholders for future claims payouts, regulators want to ensure the money is there when it’s needed. Related-party transactions can threaten that.

Walter, 66, chief executive of Chicago investment firm Guggenheim Partners, led a group that included another Guggenheim executive and Magic Johnson in acquiring the Dodgers for $2.15 billion in 2012. The Times has reported he tapped the insurers he owned for financing, a deal that was later vetted by state insurance regulators.

However, the amount of related-party loans made by the two affiliated life insurers now under federal scrutiny is vastly more, amounting to 40% of the invested assets of Delaware Life as of Dec. 31, according to Fitch Ratings. The credit rating outfit said that is the most of any North American life insurers it reviews.

It’s unclear exactly where all the money went, but the Wall Street Journal reported billions were passed through a third party before being received by entities tied to Walter or his TWG Global holding company.

Company executives also told Fitch that they were unaware they were making related-party loans. Bloomberg reported that investigators are looking at some loans made to multiple companies affiliated with one Chicago firm to see if they were passed along to Walter’s ventures.

In June regulatory filings that disclosed the $21 billion in restatements, each insurer labeled them as “corrections of errors,” which would imply that they were inadvertent.

Jacob Frenkel, a former U.S. attorney, said it appears clear a focus of the investigation into Walter’s businesses is to determine whether the restatements were just errors.

“If there is intentional concealment of related-party transactions or the creation of intermediaries to help with that concealment, that certainly [could] invite criminal and civil enforcement scrutiny,” said Frenkel, who prosecuted financial crimes and also worked for the Securities and Exchange Commission.

Authorities have seized Walter’s cellphone and laptop, according to Bloomberg. Still, investigations by prosecutors and securities regulators can result in no action.

Frenkel said that if criminality is found in complex investigations such as this one, federal prosecutors will typically file mail or wire fraud charges that carry up to 20 years in prison.

It would not matter whether a company that was the victim of fraudulent conduct closed or is able to continue conducting business after being rescued financially.

“The entity’s failure is not a prerequisite for there to be a crime in intentionally misleading conduct,” he said.

The Securities and Exchange Commission is conducting a parallel investigation into both companies, according to their regulatory filings.

Frenkel said its interest could revolve around how Guggenheim Investments, Walter’s asset management firm, booked revenue from its dealings with the insurers and the disclosures of the transactions.

The SEC can seek civil monetary penalties and the return of illegal profits, and bar or suspend an individual from serving as a corporate officer or director, among other remedies.

Delaware Life and Clear Spring are part of TWG’s Group 1001 Life & Annuity.

Delaware Life has started a remediation plan to restructure some of the loans, review others and address its “control deficiencies,” including through TWG purchasing some of the loans, according to ratings outfit S&P Global. It hopes to complete the plan by the end of the year.

However, Fitch in its downgrade of Delaware Life said the plan may prove “insufficient to fully address governance, reporting, and investment oversight issues.”

The Delaware Department of Insurance did not respond to emails for comment.

Rex Frazier, a former deputy commissioner at the California Department of Insurance, said that in the situation that the insurers find themselves, the state regulator will be looking at a company’s capital sufficiency.

“The change from unaffiliated to affiliated transactions can affect the regulator’s view of whether the insurers have adequate capital and, if the regulator thinks not, then the regulator can impose additional capital requirements,” said Frazier, now president of the Personal Insurance Federation of California, a property and casualty industry trade group.

“If the regulator determines that there is inadequate capital to pay for their obligations … there are many serious remedies they can take to protect vulnerable people depending on those income streams,” he said, including seizing a company or forcing its sale.

There is no indication that either insurer is in such dire straits. Since the disclosures, rating agencies Fitch, AM Best and S&P Global have downgraded the companies’ outlook to negative, but they also have said the insurers maintain a high level of financial strength.

Walter is not the only owner of a life insurer to rely on related-party loans to fund its business dealings.

AM Best, in a December report, said affiliated investments among life insurers and annuity companies grew more than 17% annually in 2024 to more than $373 billion, driven by those owned by private equity and asset managers.

It said the growth of such investments — a type of related-party transactions — presents “regulatory risks” that may suggest “a company’s operations are more intertwined with its parent and affiliated investment management with possible negative consequences.”

“Should the parent/affiliate company experience financial stress, negative impacts to the insurer are heightened due to the higher exposure,” it said.

Frenkel said it’s good to keep in mind that at the end of their investigations, neither the Justice Department nor the SEC may take any action.

However, due to the complexity of the case, it may be a while before that point is even reached.

“This is clearly the type of investigation that the ‘where is this going?’ conversation could easily still be continuing in January of 2028,” he said.

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Josh D’Amaro pledges new stories and experiences in first address as CEO to Disney faithful

In his first address to the Disney faithful as chief executive, Josh D’Amaro pledged that Walt Disney Co. would create new stories and experiences at the D23 fan event Wednesday night in Anaheim.

D’Amaro was greeted like a rock star during the Burbank media giant’s film and TV presentation as the assembled crowd of more than 12,000 Disney super fans at the Honda Center gave him a rousing round of applause and cheers. He beamed at the audience, while clasping his hands together in front of him.

“I believe that in order to lead this company, you have to understand what it actually feels like to be a fan,” he said onstage. “And, I do. ”

D’Amaro is no stranger to the D23 stage; in his past role as parks chief, he would give updates on the latest news for the experiences division.

But now, as CEO, he said the company would deepen its connection with fans by continuing to develop fresh stories and new experiences.

“We are not here waiting for the future,” he said. “We’re building it … we’re actually building it right now.”

While Disney unveiled several upcoming original stories, including an animated supernatural flick from Pixar called “Ghost Market” set for release in spring 2028 and “Clay,” a Disney Animation film coming later that year about a mentor-mentee relationship, many of its projects are related to existing franchises.

The company unveiled details about Pixar’s “Coco 2” and “Incredibles 3,” both of which got huge applause from the audience, as well as a live-action “Lilo & Stitch 2.” Fans cheered for the return of the Jonas Brothers reprising their original Disney roles in “Camp Rock 3.” Even a teaser from “The Bluey Movie” elicited screams from the largely adult audience.

Earlier in the day, Disney executives revealed additional plans about its streaming strategy during a series of panels.

The company plans to lean more on creators with its new Verts vertical video feed on Disney+, a new feature designed to increase engagement. So far, it has grown in popularity among users, said Erin Teague, executive vice president of product management at Disney Entertainment and ESPN.

“What we’re seeing is as users are engaging with their vertical video experience, they are actually engaging in the overall product experience, double the amount of time,” she said onstage. “That means that we’re meeting users where we are.”

The company also plans to invest more in local international content to help grow the Disney+ service around the world. Disney has seen its local Korean shows perform well in Asia, as well as Brazil, executives said. And shows that do well in one country can often be remade in other regions.

Over the next three years, Disney plans to roughly triple the number of local original series on Disney+.

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CBS News correspondent Matt Gutman accused of harassment in wrongful termination suit against ABC

A former ABC News journalist is suing former colleague CBS News Chief Correspondent Matt Gutman over inappropriate remarks he allegedly made when they worked together several years ago.

Samira Said, a field producer for ABC News for four years, included the claims related to Gutman in a wrongful termination lawsuit filed Friday in Los Angeles Superior Court against her former employer and its parent The Walt Disney Co. Gutman, who joined CBS News in January, is named as a defendant as well.

The suit cited two incidents where Said claims Gutman created a hostile work environment by making inappropriate sexual comments while on the job. While waiting on a public line with Said during an assignment, Gutman allegedly “initiated a discussion rating a female correspondent’s appearance and reducing her professional standing to a numerical score based on her physical attributes.”

Said claims the other male crew members on the assignment joined in and tried to draw her into the conversation by soliciting her views. Said declined and stated the conversation was inappropriate.

The suit cited another exchange when the two covered a press event for a movie release. Said claims she and Gutman disagreed about whether they should leave the work site. “In front of multiple coworkers, Gutman responded by making a sexualized insinuation that Said must have an after-hours date in the city,” the suit said.

The suit also said the remarks made in front of co-workers were demeaning and “reduced [Said’s] professional judgment to a sexualized stereotype.”

Gutman, 48, was the first high-profile talent hire by CBS News Editor-in-Chief Bari Weiss, who took charge of the division in October 2025. He recently filled in as anchor of the “CBS Evening News” and scored higher ratings than the program’s regular anchor Tony Dokoupil.

Gutman spent 17 years at ABC News where he mostly reported from Los Angeles.

The suit also claims Said was wrongfully terminated from ABC News in 2025 after dealing with mental health issues. The suit accuses the company of violating California’s Fair Employment and Housing Act by not making accommodations for her.

A Disney representative declined comment as executives have yet to see Said’s complaint. CBS News and Gutman also declined comment, having not seen the suit.

Said was assigned to cover the 2022 shooting at the Robb Elementary School in Uvalde, Texas, where she was required to interview child survivors who had witnessed the killing of their classmates. Afterward, she told her supervisor she needed a short leave to attend to her health but was denied.

A psychiatrist eventually approved a medical leave. The suit alleges that shortly after it began Said continued to get assignment requests from David Herndon, then head of ABC’s Los Angeles bureau.

Said was assigned to cover the Los Angeles wildfires in January 2025. She was sent home three weeks in after a supervisor observed her deteriorating physical condition, according to the suit.

Said injured her foot later that year while covering a weather-related story in the area. She reported the injury to supervisors but was denied a request for medical leave after being evaluated by a company doctor.

Said is seeking compensatory and punitive damages along with her attorneys’ fees.

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Netflix plans to close two gaming studios, including one in Hollywood

Netflix said it is in the process of closing two of its gaming studios, as the division is making another round of organizational changes.

The Los Gatos, Calif., streamer said it closed the Hollywood-based gaming studio Night School, the maker of narrative games like “Oxenfree,” on Thursday and has proposed to close Helsinki, Finland-based gaming studio Moonloot. Night School was the first game developer Netflix purchased in 2021 as it expanded into gaming. At the time, the streamer was under pressure by investors to diversify its content to attract more customers, after experiencing two quarters of subscriber losses in 2022.

Night School viewed the acquisition at the time as “such a natural pairing” as the gaming studio wanted to stretch its narrative aspirations on original games and Netflix has a reputation of giving TV and film creators an “unprecedented canvas” to bring entertainment to millions of people, according to a blog post on its website.

In an email, a Netflix spokesperson said it is eliminating roles because the company believes it can operate more strategically and efficiently in its games business. The spokesperson declined to provide the number of workers affected.

Last year, the company shut down Boss Fight Entertainment, one of the gaming studios it acquired in 2022.

Games on Netflix have had mixed results. At the end of 2024, Epic Games executive Alain Tascan joined Netflix as president of the division and under his leadership, it has focused on key areas including kids, party games like “Netflix Minigolf,” narrative games and mainstream games like “FIFA World Cup: Launch Edition.” The company also removed games in part because they did not have high engagement from its library.

Last year, Netflix unveiled several party games including “Boggle Party” and “Pictionary: Game Night.”

In June, Netflix released a narrative game made by Night School called “Unhinged” about a woman who is trapped inside her apartment during a hurricane and is trying to find safety. Voice actors in the game include Zoë Kravitz and Sadie Sink.

In a July earnings presentation, Co-CEO Greg Peters reminded analysts of the market opportunity for games, with $150 billion in consumer spending not including ad revenue or markets in China and Russia. He said the streamer is seeing solid numbers from its cloud games such as FIFA and “Unhinged” and higher adoption and retention in the cloud games than mobile games. He also said there has been strong engagement and growth from kid games.

“We’re just getting started here,” Peters said. “We’re scratching the surface in terms of what we think the total potential of the space offers for us.”

The layoffs come as Netflix stock has declined 37% from a year ago. Investors are concerned about how much time people are spending on Netflix compared to rivals like YouTube. YouTube represents about 14% of streaming-watch time by U.S. viewers on TVs, compared to Netflix’s 8% in May, according to Nielsen.

In addition to games, Netflix has added other types of content to its streaming service over the years including live events like NFL football games and video podcasts.

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California regulators approve $34.5-billion Charter-Cox merger

California regulators have approved the sale of Cox Communications to cable giant Charter Communications — the final hurdle in a marathon review to clear the $34.5-billion cable consolidation.

With Thursday’s sign-off by the California Public Utilities Commission, the mammoth merger is expected to close next week.

The deal will make Charter’s Spectrum the dominant broadband internet and cable television service in Southern California, with millions of customers scattered throughout Santa Barbara, Bakersfield, Los Angeles, Palos Verdes Estates, Newport Beach, Irvine, Riverside and San Diego.

Charter’s acquisition of Cox, unveiled 15 months ago, will solidify Charter’s status as the nation’s largest cable company, eclipsing Philadelphia-based Comcast Corp., which serves San Francisco and other Northern California communities.

“This transformative deal will benefit millions of consumers who will soon have access to greater value and opportunities to save, including our fully converged mobile-broadband bundle savings guarantee, combined with our industry-leading Customer Commitment and the 100% U.S.-based sales and service employees Spectrum is known for,” Charter said in a statement.

After weeks of behind-the-scenes wrangling, the CPUC voted unanimously to approve two settlement agreements with Charter that allow the merger to move forward. The agency attached conditions that it hopes will protect consumers and expand broadband access.

“This decision secures significant commitments that will benefit Californians through expanded affordable broadband options, major infrastructure investments, improved customer protections, and meaningful support for digital inclusion,” Commissioner Matthew Baker, who helped negotiate the agreements, said in a statement.

Federal regulators approved the deal months ago, as had other state regulators.

“This proceeding was a heavy lift for everyone,” Commissioner Darcie L. Houck acknowledged during Thursday’s hearing, which was held in San Francisco.

Through the settlements, Houck said she hoped Charter would address a disparity in which low-income residents are often stuck with higher phone and internet bills than residents in more affluent areas. Higher-income neighborhoods often benefit from increased competition as multiple providers jockey for business.

“There are many areas of the state that do have low-income communities that are paying higher costs for telecommunication services,” Houck said. “I’m hopeful that the provisions in this settlement agreement will help ensure more equity in pricing.”

Atlanta-based Cox has long been viewed as a lucrative prize. In addition to serving coastal communities in Southern California, it also has customers in growing population hubs such as Las Vegas, Phoenix and Tucson.

To win CPUC approval, the Stamford, Conn.-based cable giant agreed to offer more affordable packages for low-income residents, including several tiers of the California LifeLine service, for up to five years.

Advocates had pushed for a longer commitment.

Charter promised to invest $30 million in education and awareness initiatives in California, including community outreach and digital literacy training. In addition, Charter agreed to spend at least $275 million on upgrades to its equipment in its existing Spectrum service area — including completing a 1-gigabit service buildout — within three years.

The company also must provide free broadband and Wi-Fi service for dozens of eligible community centers, including schools and libraries.

Spectrum will be required to provide automatic bill credits for customers for qualifying service outages that last at least two hours. And the company must honor eligible “price for life” service agreements held by some residential subscribers.

Charter Chief Executive Chris Winfrey has told investors that his firm was aiming to close the merger this month. Several commissioners noted the looming deadline as they opted for the settlement that Baker helped negotiate.

Regulators said the two companies generate more than $10 billion in revenue from their California customers. In addition to serving more than 5 million homes, they also provide telephone service to 1.5 million subscribers in the state.

Cox utility trucks in Springfield, Virginia. (Photo by Kevin Dietsch/Getty Images)

California regulators have approved Charter’s $34.5-billion purchase of Cox Communications.

(Kevin Dietsch / Getty Images)

After the deal closes, Cox customers will be switched to Spectrum service, most likely by mid-September. They should also get SportsNet LA — the Dodgers’ television channel — as part oftheir lineups.

For more than a decade, Cox has refused to carry the channel, owned by the Dodgers organization, due to its high license fee — leading to one of the television industry’s longest blackouts.

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Trump’s vaccine plan would require millions of individual shots last used decades ago

Public health experts have been quick to condemn an executive order from President Trump aimed at upending childhood vaccinations in the U.S., but the biggest obstacles may be the unprecedented financial and logistical challenges it would impose on parents, health providers and drugmakers.

Monday’s announcement by the Republican president calls for separating combination shots — including the measles, mumps and rubella, or MMR, vaccine — into separate injections. Appointments for that and other vaccinations should be spaced out whenever possible, the order states.

To accomplish that, drugmakers would need to revive a slate of individual vaccines that have not been marketed separately in the U.S. for decades. They would also have to build new manufacturing plants capable of producing millions more vaccine doses than the nation currently uses.

For parents, unbundling the MMR vaccine and spacing out the shots would mean returning to the doctor’s office many more times than is currently needed. Those appointments could also strain pediatricians who typically administer the shots, while driving up costs tied to syringes and other medical supplies.

Studies in the U.S. and other countries have shown that combination vaccines increase the likelihood that children will be fully protected from infectious diseases before starting school.

Health experts say there is no scientific basis for changing course.

“We do things that are less convenient and more expensive if there’s a good reason to do it,” said Dr. Anna Durbin, of the Johns Hopkins Bloomberg School of Public Health. “There is no good justification for this. I think it’s very bad public health policy.”

Trump’s plan would require vaccine manufacturing overhaul

Under Trump’s executive order, federal officials are instructed to develop within 90 days plans for breaking up the MMR shot and spacing out other vaccines.

But pharmaceutical scientists and former regulators say those changes would likely take years and require drugmakers to spend tens of millions of dollars on new studies and manufacturing facilities.

Currently, there are no individual vaccines in the U.S. for measles, mumps or rubella. All the vaccines approved for those viruses by the Food and Drug Administration are combination shots. That three-in-one approach has been the standard in the U.S. since the early 1970s.

Dr. Jesse Goodman, a former FDA vaccine chief, said companies would have to conduct large studies showing new individual shots produced immune system-boosting reactions in children similar to the current versions.

Companies might also have to demonstrate the safety of new manufacturing facilities and procedures, given that individual measles shots haven’t been widely produced in the U.S. for roughly a half-century.

“The question is how much has changed since then and how comfortable will the FDA and the companies be relying on those comparisons?” said Goodman, who is now a professor at Georgetown University.

Designing, constructing and getting federal sign-off for new vaccine plants typically takes about five years, according to industry experts.

Additionally, Goodman said the FDA would have to review and license each unbundled vaccine separately, a process with no precedent.

“I don’t think there’s any comparable example of removing hugely effective public health measures that protect babies for no documented scientific reason,” he said.

Individual shots for measles and related diseases tend to be used by lower-income countries that can’t afford the MMR shot. Merck, GSK and the handful of other companies that supply U.S. childhood vaccines make only the combination shot.

In separate statements, Merck and GSK said they stand by the safety and effectiveness of their products. Neither discussed plans to unbundle their shots.

“To date, there has been no published scientific evidence that shows any benefit in separating the combination MMR vaccine into three individual shots,” Merck said in an emailed statement.

Parents would need to make many more trips to the doctor

The MMR shot is currently delivered in two doses — the first at the age of 1 and the second dose after age 4. Splitting up the shot into its three separate components would mean six office visits. Spacing out other shots for pertussis and other infectious diseases could multiply the number of visits many more times.

As the number of visits goes up, parents are more likely to miss appointments or stop making them, according to Durbin.

“It’s going to be less convenient, more expensive and you’re going to have fewer people getting vaccinated,” she said.

Since last year, Trump has repeatedly expressed concern about the number of vaccinations U.S. children are receiving and called on Health Secretary Robert F. Kennedy Jr. to reduce the number. Kennedy and other officials have pointed to smaller countries, such as Denmark, that recommended slightly fewer vaccines than the U.S.

But breaking up combination shots will result in kids receiving many more individual shots than other comparable nations, Durbin notes.

White House spokesman Kush Desai said the Trump administration’s efforts on the MMR vaccine “will give parents more options on timing and frequency for their children, which ultimately will increase vaccination rates for all three diseases.”

Vaccine order is not legally binding

Despite the precedent-breaking nature of Trump’s order, some experts are skeptical it will result in meaningful changes.

Neither the White House nor the FDA can compel drugmakers to develop and seek approval for new vaccines. And from a business perspective, companies have little incentive to develop individual versions of vaccines they already sell in combination shots.

“They’d be competing against themselves, and there’s no reason to do that,” said Dr. Paul Offit, a Children’s Hospital of Philadelphia vaccine researcher and former government adviser.

While Trump’s order calls for more federal research and recommendations, only state governments have the legal authority to require vaccinations for schoolchildren. The order simply advises states to consider updating their laws to reflect the Trump administration’s approach.

“I think states will ignore this,” Offit said. “I think that bottom line is that we don’t need to look to Donald Trump for our medical advice.”

Perrone writes for the Associated Press. AP videojournalist Mary Conlon in New York contributed to this report.

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State lawmakers seek tougher rules for industrial facilities after Boyle Heights fire

Two state lawmakers from Los Angeles want tougher penalties for disasters caused by industrial companies after a massive fire in Boyle Heights left neighbors struggling with smoky air and the smell of rotting meat.

Assemblymember Mark González and state Sen. María Elena Durazo, both Democrats, are seeking a new law that would require any new cold storage facility to create a contingency fund for emergencies.

The fund would be used to help neighbors mitigate the fallout from a disaster.

Los Angeles Mayor Karen Bass, who is running for reelection, will appear with González and Durazo at an event Wednesday to discuss the proposed laws.

Lineage’s 500,000-square-foot food warehouse in Boyle Heights caught fire on June 17. The company blames a power company, which was working on the warehouse’s roof, for the blaze.

The company, Altus Power, has denied responsibility, stating that the cause is undetermined. The company accused Lineage of finger-pointing instead of focusing on community relief.

Noxious smoke and an influx of rats and flies attracted to rotting meat stored at the facility have tormented neighbors. The Los Angeles County Department of Public Health has cited Lineage for unsanitary and nuisance conditions related to rodent and pest control violations.

The South Coast Air Quality Management District has issued at least 20 violation notices to Lineage for public nuisance.

Lineage recently applied for building permits to replace the site, which Bass called “a slap in the face” to Boyle Heights families.

A press release ahead of Wednesday’s news conference said the proposal by lawmakers “will ensure that Lineage can’t rebuild without being accountable to the community.”

González and Durazo plan to insert proposed legislation related to the Lineage fire into existing bills, a process known as “gut and amend.”

The politicians also want to allow for stiffer fines against companies following a disaster.

Their proposed legislation also would ensure that anyone who sues over the fire doesn’t have to pay state taxes on any settlement, and that local jurisdictions are responsible for pest extermination efforts.

Greg Lehmkuhl, president and chief executive of Lineage, said in a quarterly earnings call last week that the company has committed $3.3 million to the community in the aftermath of the fire.

“Safety remains our top priority, and I’m incredibly proud of our team and how they’re handling this very challenging situation,” Lehmkuhl said on the call.

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Senator ‘deeply troubled’ by utility threats

The chair of the California Senate’s utilities committee said Tuesday that he was “deeply troubled” by electric company executives’ recent threats to take action to protect their shareholders if they don’t get legislation in Sacramento to limit their wildfire liabilities.

In a letter to Southern California Edison and Pacific Gas & Electric, Sen. Benjamin Allen (D-Santa Monica) wrote that he was considering calling the utility executives to an oversight hearing to have them explain their plans.

Allen sent the letter after the Times reported that the two companies’ top executives promised their investors in recent conference calls that they planned to respond if they don’t get legislation for which they have been lobbying. Gov. Gavin Newsom and lawmakers are working behind closed doors on a package of wildfire bills.

“While I understand that utility investors seek predictability for their invested dollars, and stable utilities are important to the state of California, we as legislators must balance the additional interests of wildfire victims and survivors, our residents’ ability to access affordable insurance, and the need to ensure affordable utility service,” Allen wrote.

“We are certainly not interested in being threatened as we seek a balanced path that is right for California,” he added.

In response to the letter, PG&E and Edison said Tuesday night that The Times had “mischaracterized” their executives’ comments to investors.

“PG&E’s objectives remain unchanged: safely and reliably serve our customers, ensure wildfire victims are compensated quickly and fairly, and protect customer affordability,” PG&E said in a statement.

Edison declined to comment further.

Besides chairing the Senate’s Energy, Utilities and Communications Committee, Allen also is running in November’s election to be the state’s next insurance commissioner.

Newsom and lawmakers already passed legislation that cut the state’s three biggest electric companies’ liabilities for wildfires. Edison’s shareholders, for example, may pay little of the billions of dollars of damage from last year’s devastating Eaton fire — which killed 19 people and left thousands of families in Altadena homeless — under current laws championed by Newsom to protect the utilities from bankruptcy.

The utilities say more needs to be done. Among the recommendations in a report ordered by Newsom is limiting the amounts that victims can receive for pain and suffering and capping the fees of attorneys who represent them.

The commissioned report also suggested that utilities should no longer reimburse property insurers for damage from fires sparked by electrical equipment. Although this would reduce utilities’ liability for fires, insurers say it would increase premiums for homeowners.

“If the Legislature does not act, or if they act and don’t actually solve the problem, then we’re going to have to take action,” Patti Poppe, PG&E’s chief executive, said on a July 23 call with Wall Street analysts.

Poppe did not specify what her company would do, but made it clear that any action would protect shareholders’ money.

In earlier conversations with analysts, PG&E executives had “alluded to the possibility of opportunistic share repurchases should the legislative process fail to deliver a more durable wildfire liability framework,” according to a report by the bank Jeffries.

Such buybacks could raise the company’s stock price and benefit shareholders while reducing money available for the utility’s California programs.

Last month, Pedro Pizarro, chief executive of Edison International, told Wall Street analysts on a conference call that he too was prepared to make financial changes if the Legislature does not pass a comprehensive bill to cut the utilities’ financial wildfire risk before the legislative session ends Aug. 31.

Any legislation that passes without a protective framework for utilities, Pizarro said, would “influence how we prioritize and deploy future capital.”

Pizarro declined analysts’ requests to say where the company would cut back, but said the utility would continue spending aimed at keeping its grid safe and reliable.

“We’re going to evaluate the totality of the package that comes to us and figure out our response that goes along with it,” Pizarro said.

This month, state and county officials released their investigation into the Eaton fire, blaming the deadly inferno on Edison’s century-old transmission line that the company kept in place even though it hadn’t carried electricity since 1971.

Utilities have long known that idle lines could spark fires. In 2019, the Kincade fire in Sonoma County, which destroyed hundreds of homes, was ignited by an old, unused transmission line owned by PG&E.

At least seven of the 20 most destructive fires in California history have been sparked by the three biggest for-profit utilities.

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Inside David Ellison’s desperate fight for Warner Bros.

In less than a month, Paramount Skydance Chief Executive David Ellison has exhibited a dizzying range of emotions as the goal line for the coveted $111-billion Warner Bros. Discovery deal has moved farther away.

The tech scion initially exuded confidence that Hollywood’s biggest merger in decades was on a fast track to completion by September. Ellison and others downplayed efforts by California Atty. Gen. Rob Bonta to challenge the acquisition — until Bonta and 11 other Democratic state attorneys general gained momentum in their antitrust lawsuit, which now threatens to derail Paramount’s Warner Bros. deal or, at least, make it significantly more expensive.

Ellison and his executives have vacillated from anger to acceptance. Last week, Ellison attempted a high-profile reputation reboot, extolling his love for movies and blaming politics for opposition to the deal.

The mogul has told investors the company is willing to negotiate a settlement with Bonta in hopes of completing the massive merger as soon as possible.

But Ellison also is making contingency plans to shift Paramount’s historic home base from Melrose Avenue to Tennessee — or perhaps Texas — as early as this fall.

Paramount’s board has approved Ellison’s relocation plans, according to people familiar with the situation who were not authorized to speak publicly. Ellison shared the concept with his executive leadership team in a meeting last Wednesday but said his preference was to remain in California, these people said.

The proposal includes potentially selling the 65-acre Paramount lot in Hollywood — as well as the larger Warner Bros. campus in Burbank, should Paramount prevail in the merger battle. Such sales would generate revenue to help pay merger costs, one of the knowledgeable sources said.

Paramount’s sudden relocation plan has further rattled Hollywood, which already is reeling from thousands of job losses in recent years.

Bonta, in a statement Tuesday, blasted Paramount’s latest strategy, calling it “another attempt to blackmail the state into letting an illegal deal through.”

“Paramount has lost the plot as it continues to lose in court,” Bonta said. “My office remains committed to stopping illegal consolidation and protecting a vibrant California economy for businesses that play by the rules.”

Behind Paramount’s pivot is a desperate scramble to bolster its legal case and muster funds to help finance a deal Warner shareholders approved in April.

Paramount offered to pay Warner investors $31 a share as well as so-called “ticking fees” of 25 cents per share for every quarter after Sept. 30 until the transaction closes.

That sweetener was intended as a show of confidence that Paramount’s deal would sail through its regulatory reviews, unlike a Netflix acquisition that faced more regulatory scrutiny. Netflix subsequently dropped its bid.

Paramount was banking on the swift approval of the U.S. Department of Justice, which arrived in June. President Trump is friendly with the Ellison family, and he has been eager for a shakeup at CNN, one of Warner’s properties.

“Ellison thought he had an ace in the hole with Trump [and] the DOJ, but it backfired on him because the clearance was so obviously rubber-stamping,” London-based media analyst Alice Enders said. “Now, the issues have resurfaced and it’s a costly potential delay.”

The ticking fees could add $7 million a day — or $650 million a quarter — to the $81 billion that Paramount had already anticipated paying Warner shareholders. (Paramount also agreed to absorb about $30 billion of Warner Bros. debt left over from last merger, in 2022.)

Ellison has repeatedly defended his proposed purchase, saying the tie-up does not threaten competition because Hollywood has been transformed by Netflix and other deep-pocketed tech giants.

Already, Paramount has received clearances from 65 foreign regulators, including Britain and the European Commission.

To accelerate California approvals, Paramount requested a November trial date for Bonta’s suit. Instead, U.S. District Judge Araceli Martínez-Olguín scheduled a March 2 trial — dealing another blow to Paramount.

Ticking fees alone could add $2.1 billion to the cost of buying Warner Bros. In addition, Paramount said that delaying the transaction until next spring will add $190 million in bridge loan financing costs.

Paramount disclosed that it had $1.6 billion in cash on hand and a revolving loan of $3.2 billion available for its use.

If the deal fails to close by June 4, Paramount would have to pay Warner Bros. a $7-billion breakup fee. That’s when Warner’s board could pull the plug on the Paramount deal.

Puck News first reported Ellison’s latest plan to quickly move Paramount’s operations as soon as October.

“This is a plan — not a threat,” said a person who was in the room when Ellison discussed his plans but who was not authorized to comment.

The relocation campaign echoes a tactic employed by software giant Oracle Corp., co-founded by Ellison’s billionaire father, Larry Ellison.

Oracle was based in Redwood City for three decades, but in late 2020, the company moved its headquarters to Austin, Texas, joining other California tech firms leaving in protest of the state’s high taxes and steep cost of living.

Then, two years ago, the elder Ellison announced that Nashville would host Oracle’s new headquarters. At the time, Oracle saw that state’s healthcare industry as a promising growth business. Oracle since has bet heavily on artificial intelligence.

In contrast, it would be difficult for Paramount to pack up its operations because it depends on producers, directors, writers and stars to make its TV shows and movies. The two studio lots also boast dozens of soundstages; century-old fortresses that would not be easily duplicated. And many Paramount executives are not eager to leave Los Angeles.

Some observers questioned Paramount’s willingness to carry out a move, which surfaced a week after David Ellison’s guest essay in the New York Times, which described his love of Hollywood and movies ever since he was a boy.

Ellison believes the proposed Warner merger is the best way to save Hollywood, saying the combination of two storied studios would strengthen not harm the film industry.

“One moment he’s promising to reinvigorate theatrical releases. The next he’s talking about uprooting two historic companies and moving them 2,000 miles away in order to avoid a lawsuit,” said Gabriel Kahn, journalism professor at USC Annenberg School for Communication.

Paramount’s corporate headquarters are in New York but after the Ellison family’s acquisition last year, the center of gravity shifted west. Ellison and other top executives live in Los Angeles.

Another corporate move wouldn’t disrupt Bonta’s lawsuit, experts say.

Instead, they suggested Paramount’s flurry of recent activities — including winning the support of two large theater chains, AMC and Regal, with promises of a robust movie pipeline post-merger — appeared to be part of a public relations and pressure campaign.

“They lost a lot of leverage now that the trial is set for March,” said Abiel Garcia, a former prosecutor and partner at the Manhattan Beach firm Kesselman Brantly Stockinger.

“And when you don’t have leverage in court, you go the political route,” he said, adding that Paramount seems to be angling for Gov. Gavin Newsom to join the fight.

Newsom, who has presidential ambitions, has been sensitive to the flight of companies from California. However, he has avoided picking a side in the messy merger squabble.

What’s more, the governor lacks authority to intervene in the lawsuit brought by Bonta and 11 other state attorneys general.

“All I know is that if I was governor, I wouldn’t want to lose Hollywood from this state, I wouldn’t want to lose a major company like Paramount to another state,” Paramount Chief Legal Officer Makan Delrahim said late Tuesday at a Politico Live conference in Sacramento. He had been asked about the stances of Newsom and his potential successor, Xavier Becerra, the Democratic gubernatorial nominee.

“I hope it settles before court,” Becerra said at the conference. “It is easier to stand in a conference room and settle than it is to stand in a courtroom.”

Delaying the trial until March has been “devastating,” Delrahim said, adding that Paramount proposed settlement terms on May 19 — but the state attorneys general instead moved forward with their suit.

“It’s costing jobs. It’s costing a lot of uncertainty for a lot of our employees, for Warner Bros. employees,” Delrahim said.

Still, Garcia and others expressed doubts about Paramount’s full-court press.

“It just feels a little over the top. It feels like a PR blitz,” Garcia said. “It suggests to me that they think their case is weaker than I even thought.”

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Spotify to label ‘AI personas’ and rid AI music from recommendations

In its latest effort to protect human creators from the flood of synthetic music, Spotify will soon require AI-generated identities to carry an “AI Persona” label while barring their tracks from users’ algorithmic mixes.

The change will take effect in mid-September. It follows Spotify’s earlier moves to help subscribers understand the difference between genuine and artificial creators. The platform announced a verification badge in April designed to highlight human artists. In a statement Tuesday, Spotify said the new AI Persona label is meant to make the streamer “the most transparent and trustworthy place to listen to music.” Music from labeled AI Personas will also be excluded from the Swedish company’s personalized recommendations by default.

“While we believe all artists have creative choice in determining how they present themselves, Spotify’s programming is focused on elevating music from authentic artists building careers in music,” the company said .

The AI persona badge will soon appear on an artist’s profile, in the search feature and in playlists.

This is a step in the right direction, said Tiffany Naiman, the director of Music Industry Programs at UCLA. But, she said, she’s more interested in how the company will be identifying AI personas.

“I want to know the process. How [will they] know the difference? Are there going to be [real] artists that get tied up in it?” Naiman said. “It feels very ‘Blade Runner,’ right? Like you’re human, you’re not human.”

Starting Tuesday, Spotify users will be able to identify themselves as AI personas, if applicable. But the company said it “won’t rely on self-disclosure alone” and will use “human review alongside AI investigative tools to apply the label.”

Artists who get labeled as AI personas by Spotify will be allowed to appeal the label. In the coming months, users will also have the ability to report artist profiles as potential AI personas.

The label is the latest feature from the streaming platform that builds on transparency between the artist and their listeners. Recently, Spotify has also introduced SongDNA, an interactive feature that shows the creative team behind the track; AI Credits, a disclaimer where artists can reveal how much AI was used in their creative process and Artist Profile Protection, which allows artists to review and approve all releases on Spotify.

Artificial intelligence is becoming an essential part of Spotify’s business. The company announced a new AI deal last week with the digital music licensing company Merlin. The partnership will enable artists across the more than 30,000 labels and distributors in Merlin’s network to participate in Spotify’s upcoming AI tool. It hasn’t launched yet, but the goal is to let fans create AI-generated remixes and covers of existing songs on the platform.

Spotify is following in the steps of other streaming platforms that have taken more aggressive approaches to the new technology. Deezer, a French streamer, was the first to detect, tag and exclude AI-generated music from algorithmic recommendations. The company recently disclosed that up to 90,000 AI tracks are being uploaded to the platform daily, representing more than 50% of its new music uploads. Tidal has banned AI-generated music from receiving royalties on its platform.

“We know the music ecosystem is evolving, and so will our approach,” said Spotify in a statement. “We’ll continue to adapt as the landscape changes and as we learn from artists, listeners, and industry partners.”

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