company

Epic Games, the developer of the popular video game “Fortnite,” is laying off more than 1,000 employees and cutting $500 million in costs.

Chief Executive Tim Sweeney announced the cuts Tuesday morning in a message to employees. He said it has nothing to do with AI and instead pointed to what he said was a lack of “Fortnite” engagement last year.

“Despite Fortnite remaining one of the most successful games in the world, we’ve had challenges delivering consistent Fortnite magic with every season,” said Sweeney in a statement.

The company’s flagship game was first released in 2017. Since then, it’s been a key part of internet culture — where character-specific dances became widespread trends and major musicians, like Travis Scott and Ariana Grande, have hosted concerts in the virtual realm.

But Epic has been slow to optimize the computer game for mobile play. A “Fortnite” app was first introduced in 2018, but soon removed due to a legal battle against Apple and Google over app store practices. Sweeney said the company is still in the “early stages of returning to mobile and optimizing Fortnite for the world’s billions of smartphones.”

Many of Epic’s woes also come from industry-wide challenges, like “slower growth, weaker spending, and tougher cost economics,” Sweeney wrote. And Epic isn’t the only one suffering. In recent years, gaming companies like Electronic Arts and Microsoft’s Xbox division have all cut down their workforces.

Earlier this year, the State of the Game Industry Report from the Game Developers Conference found roughly one-third of U.S. video game industry workers were laid off in the past two years.

Epic Games was founded in 1991 and is headquartered in Cary, North Carolina. It has dozens of offices around the world, including in Los Angeles. Beyond “Fortnite,” the company is known as a leader in 3D engine technology and interactive entertainment.

Over the years, Epic Games has steadily built itself into a major Hollywood player. Its 3D creation tool, the Unreal Engine, has been used to produce visual effects and virtual worlds for shows like Walt Disney Co. and Lucasfilm’s “The Mandalorian” and HBO’s “Westworld.”

In 2024, Disney inked a deal with Epic Games to create a games and entertainment universe with the company’s brands, including Star Wars, Marvel and Pixar. Disney invested $1.5 billion in Epic Games for a minority stake in the company. Newly minted Disney Chief Executive Josh D’Amaro managed the collaboration with Epic Games in his previous role as parks chief to create a Disney world within the popular “Fortnite” game.

Looking ahead, Sweeney plans to focus the company on building “awesome Fortnite experiences” with fresh content and continue to accelerate its developer tools like the Unreal Engine.

The announcement of the end of CBS News Radio last Friday was met with elegiac tributes to the service that built the foundation of William Paley’s company nearly 100 years ago and brought the heroic work of journalists such as Edward R. Murrow to millions of listeners.

But for the 700 affiliates carrying CBS News Radio, the concerns are more practical as they are faced with finding new national programming that will replace it. CBS Radio News will go silent on May 22.

The shutdown of the historic radio division was part of a division-wide staff cut that will affect 6% of the CBS News workforce. Affiliate stations learned of the decision only minutes before it was released to the press.

The local all-news radio stations carrying the service had to post messages on social media to assure listeners that they were not disappearing — only the national newscasts that were provided by CBS.

KNX, the all-news station in Los Angeles that has carried CBS programming since 1936, posted a lengthy segment on the impending closure and explained how “KNX News is not going anywhere.”

KNX was owned by CBS until 2017. The New York-based Audacy, under its previous name Entercom, acquired the CBS radio stations in 2017. KNX and the other Audacy news stations such as WBBM in Chicago, KCBS in San Francisco and WWJ in Detroit remained CBS affiliates, carrying the hourly CBS newscasts.

The Audacy all-news outlets, which reach around 9 million listeners a month, provided about one-third of U.S. coverage for CBS News Radio, the most of any station group carrying the service.

Audacy said it will find a replacement for CBS News Radio to provide national and international coverage, noting that the mission of its all-news stations will not be affected.

“The vast majority of our news and talk programming remains original and locally-produced, and we are beginning conversations with other national news providers to ensure our listeners continue to have access to world-class programming they value and trust.” said Chris Oliviero, chief business officer for Audacy.

Educating the listening public and advertisers that the stations will be fundamentally the same once CBS is gone will require some effort. KNX and the other Audacy all-news stations have a long association with CBS, which launched their formats starting in the late 1960s.

Along with the hourly newscasts, the stations carried “The Osgood Files,” a massively popular commentary segment hosted by the late former “CBS Sunday Morning” host Charles Osgood, for 46 years until 2017. The jingles and sounders used to identify CBS News network programming heard on the stations for decades have also been part of the listening experience.

Among the possible replacements for CBS News Radio is ABC News Audio, which is the largest network radio news service in the U.S. with 1,500 affiliates. The Audacy stations currently use ABC News content outside of its hourly newscasts.

KFI-AM currently carries the ABC News Audio newscasts in Los Angeles. Exclusivity of the ABC News Audio affiliations are determined on a market-by-market basis, according to a representative at the network.

Fox News Media, the home of the conservative-leaning cable channel, also offers a radio service with hourly newscasts and dedicated reporters, which airs on several hundred stations (the company does not supply a specific number).

While Fox News Radio delivers straight reporting, the service is likely to find a home on some of the conservative talk stations that are currently CBS News affiliates.

Rather than chasing sequels and reboots, Netflix is betting its 2026 film strategy on a massive investment in original storytelling and a renewed focus on the theatrical comedy.

The streaming giant’s need for original content is one of the main reasons Netflix fought fiercely to acquire Warner Bros. But even after losing the bid to Paramount earlier this month, the priority remains.

“We’re zigging where legacy studios are zagging,” Dan Lin, Netflix’s film chairman, said Wednesday at Netflix’s slate event in Hollywood.

Last year, 18 of the top 20 theatrical films were based on already established intellectual property, like with sequels and remakes. The only two original ideas to break through were Ryan Coogler’s “Sinners” and Zach Cregger’s “Weapons.” Both of these films were received well by audiences and earned golden statues at this year’s Oscars.

Lin said that at Netflix, 2025’s slate was the “exact opposite,” where half of the films it released last year were based on original storytelling.

“We have a very healthy content budget. So if there’s a great movie out there, we’ll go out and either build it or acquire it,” Lin said.

Bela Bajaria, the company’s chief content officer, said the company isn’t too concerned with the theatrical element that other studios can offer when hunting for these original stories, as Netflix is a streaming-first company.

“We’ve always had competition. This isn’t really any different,” said Bajaria. “It’s to understand what the competition is, not head in the sand at all. [We have] to understand what the market is and continue to look ahead.”

It’s not just original ideas that Netflix is scouting; the streamer’s also looking to fill gaps in genres. In recent years, comedies have fallen out of favor with major studios — leaving room for streamers like Netflix to expand. This year, Netflix is looking to break through with upcoming comedy productions like Kevin Hart’s bachelor party-driven “72 Hours,” John Cena and Eric André’s buddy comedy “Little Brother” and Eva Longoria’s “Fifth Wheel,” which Lin describes as “our version of ‘Bridesmaids.’”

“We’re taking the chance, and we’re making the movies,” Lin said. “It’s what we’re delivering, I hope, [it’s] what audiences want and what they’re craving. There are a lot of genres that you just can’t find in theaters anymore. So, we’re making those kinds of movies.”

In addition to emphasizing comedies, there’s a lot of opportunity to develop young adult films, Lin said. Netflix has upcoming titles such as “Voicemails for Isabelle,” starring Zoey Deutch and Nick Robinson, and “Roommates,” with Sadie Sandler, to draw in younger movie watchers.

One genre in which Netflix doesn’t see much success is live musical adaptations, so it’s “not an area that I’m leaning into,” Lin said. He first joined the company in 2024 and has since green-lighted 88 films.

Netflix subscribers watch about seven movies a month, according to the streamer’s data. So, with the push for original stories, the streamer is hoping to meet its consumers’ demands.

The current strategy is to release up to four “event films” a year. For 2026, Netflix is looking at Greta Gerwig’s “Narnia” adaptation and David Fincher’s follow-up to “Once Upon a Time … in Hollywood” as its big hitters.

“It’s all very under wraps right now, but it’s something that I’m just so thrilled about because it was the book of my childhood. It was the book series that I loved, and I lived through, and I spent so much time imagining myself inside of Narnia,” Gerwig said in a video message during the Netflix event. “It’s been a joy and an honor to be the person who gets to imagine this universe.”

Gerwig’s “Narnia” is set to hit Imax this Thanksgiving and start streaming on Netflix come Christmas.

In a stunning move, CBS News is shutting down its radio division, getting out of the medium where its storied history began nearly 100 years ago.

CBS News Radio will stop offering its service to its 700 affiliate stations on May 22.

“While this was a necessary decision, it was not an easy one,” the company said in a memo obtained by The Times. “A shift in radio station programming strategies, coupled with challenging economic realities, has made it impossible to continue the service.”

CBS sold its own radio stations in 2017, but continued to offer hourly network newscasts to affiliate stations, including “World News Roundup,” which has been on the air since 1938. Legendary CBS News journalist Edward R. Murrow delivered his first report on the program.

The news of the shutdown comes as dozens of CBS News employees are learning Friday if they have a future at the struggling news division.

A morning email from CBS News President Tom Cibrowski and editor-in-chief Bari Weiss that was obtained by The Times said staff affected by a new round of job reductions will be notified by the end of the day. About 6% of the 1,000 CBS News employees will be affected.

The cuts had been hinted at earlier this year by Weiss, when she said her business goal for the division is to expand its reach on digital platforms. Weiss and Cibrowski raised the same issue in their note informing employees of the cuts.

“It’s no secret that the news business is changing radically, and that we need to change along with it,” they wrote. “New audiences are burgeoning in new places and we are pressing forward with ambitious plans to grow and invest so that we can be there for them.”

CBS News has been dealing with a decline in revenue for its TV programs, as viewers have gravitated toward streaming platforms and social media.

The network’s daily programs “CBS Evening News with Tony Dokoupil” and “CBS Mornings,” both run well behind their competition in the ratings. It does have two strong weekend franchises in “60 Minutes” and “CBS Sunday Morning.”

CBS News is expected to be under the same corporate ownership as CNN once parent company Paramount closes its $111 billion deal to acquire Warner Bros. Discovery. The two divisions are likely to share news gathering costs, which could lead to the closure of bureaus and a reduction of personnel.

CBS News lost about 100 employees in October as part of a massive round of cuts enacted at Paramount after the company was acquired by Skydance Media.

Weiss had joined CBS News earlier that month and was not directly involved in the staff reductions. She is said to be more personally involved in the cuts occurring Friday.

Despite the show’s approach to make their actors unrecognisable you might remember some from big series

A Prime Video series that was dubbed ‘best show ever’ is finally returning with a whole new cast and approach, although there are still some faces that you might recognise.

Jury Duty is returning with a second season and a new set up, with the first episodes available to stream from March 20. Part social experiment, part reality series and part sitcom, the show is unlike most of what you’ve seen before.

According to its synopsis, Jury Duty Presents: Company Retreat is a comedy series that captures a corporate offsite event at a family-owned hot sauce company from the perspective of Anthony, a recently hired temporary worker.

Unbeknownst to Anthony, the entire experience is staged. Every colleague around him is performing a role and each moment whether in conference rooms or during downtime has been meticulously orchestrated. As the founder prepares to step down, the getaway transforms into a clash between big corproate ambitions and small business values, with control of the company hanging in the balance.

While the premise of the show means that all the actors involved have to be unrecognisable to the one non-actor, there are actually a few faces you may have seen before. But who are they and what have they starred in that you may remember them from? Here’s all you need to know.

Jerry Hauck plays Doug, the CEO of Rockin Grandma’s Hot Sauce. He’s described as “a lovable papa bear with Big Dad Energy who cares deeply about the company he’s built and the people that work for it.” Hauck has had memorable small roles on huge shows including ER, Seinfeld, It’s Always Sunny in Philadelphia and Paradise.

Alex Bonifer stars as Doug’s son and heir apparent to the business, Dougie Jr. He is “well-meaning but directionless” who is suddenly handed huge responsibilities. Eagle-eyed viewers will recognise Bonifer from Kevin Can F*** Himself where he played the role of Neil.

Amy, of customer relations is played by Emily Pendergast who has a lot of experience in comedy TV. She starred in multiple episodes of Veep and Netflix sitcom Leanne. Meanwhile the eventually nicknamed Other Anthony, who is he company’s Assistant Sourcing Manager, is played by Rob Lathan who previously appeared in Inside Amy Schumer and has served as a writer on other sketch shows.

Comedian Rachel Kaly plays remote worker and web designer Claire. While her character might be obsessed with the series Bones, she herself has appeared on animated comedy Digman! and High Maintenance.

Straight talking Helen, from accounting who has been at the business from the very beginning alongside Doug, is played by Stephanie Hodge. She is one of the most experienced cast members with past credits including NCIS, Young Sheldon and Scandal. She also had starring roles in the 90s on Nurses and Unhappily Ever After.

Jackie, who works in distribution and logistics when not taking charge of her kids at home, is played by LaNisa Renee Frederick. She’s previously appeared in smaller roles on Brooklyn Nine Nine, The Goldbergs and Mom.

Jim Woods, who was a writer on The Last O.G. starring Tracy Morgan, and starred on Reno 911!. takes on the role of warehouse manager Jimmy. He may have once been the non P.C. employee but he’s working maybe a bit too hard to be a better version of himself.

Erica Hernandez plays Kate from sales and marketing, who often gives the impression she should have a leadership role herself. Hernandez previously starred in the drama series True Lies, based on the 1994 Arnold Schwarzenegger film as well as New Amsterdam.

The other half of Team Skate (Steve & Kate), Steve is a “confident salesman that plays the calmer yin to Kate’s high-strung yang.” He is played by Warren Burke who has appeared in 13 episodes of Family Reunion and eight episodes of Bigger.

Snack obsessed receptionist PJ, is played by Marc-Sully Saint-Fleur who you may have seen before in Steve Carrell starring Netflix comedy Space Force or his brief appearances in Curb Your Enthusiasm and The Good Place. There’s also HR manager Kevin who is the one who seemingly hires Anthony to be his assistant.

He is played by Ryan Perez. Perez is actually a seasoned comedy actor, writer and director. He has written for Saturday Night Live and The Tonight Show with Jimmy Fallon while he has also directed Funny or Die shorts with Will Ferrell and Kevin Hart.

Ranch manager Marjorie who is looking after the company workers while on retreat is played by Blair Beeken. She most recently appeared in Apple’s hit sci-fi series Pluribus.

Jury Duty Presents Company Retreat is streaming on Prime Video.

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SACRAMENTO — During the Los Angeles writers’ strike in 2023, Democratic Rep. Eric Swalwell wanted to reach out to his donors in Hollywood and ask what he could do to help them. But he didn’t have an easy way to find the screenwriters who backed his many campaigns.

So Swalwell and his congressional chief of staff launched an AI technology company that sifts and analyzes campaign fundraising data.

The company has since been used by dozens of political campaigns, including by Sen. Adam Schiff (D-Calif.) and Rep. Jimmy Gomez (D-Los Angeles). Even Swalwell’s current campaign for California governor hired the artificial intelligence company, called Findraiser.

But some details of Swalwell’s private venture remain unclear, including the company’s investors.

Craig Holman, a governmental ethics expert with the nonprofit consumer advocacy organization Public Citizen, said it’s common and legal for candidates to use their own businesses to promote their campaigns or the campaigns of others, as long as all business interactions are charged at market value.

He said Swalwell can talk about his business privately but cannot do so in relation to his role in Congress, to avoid running afoul of ethics rules barring using one’s position for personal monetary gain.

Holman called it “odd and politically unwise” that Swalwell’s business will not publicly disclose all of its investors.

Swalwell, who has represented Northern California in Congress since 2013, is among the top Democrats in the governor’s race, according to a recent poll, but thus far none of the candidates has a breakaway lead.

Findraiser is close to profitability, his onetime chief of staff, current campaign manager and Findraiser CEO Yardena Wolf said in a podcast interview that aired in October.

The company received more than $67,400 from congressional campaigns in the 2025-26 cycle, according to filings with the federal government.

Members of Congress are not barred from owning outside companies or accepting a small outside salary, with exceptions. Swalwell makes no income from the company, according to filings he has made with the state of California, though he could benefit if the company was ever sold.

“Findraiser is a platform like hundreds of other tools in the market that helps Democratic campaigns communicate more efficiently,” a Swalwell spokesperson said. “Congressman Swalwell and the Findraiser team consulted the House Committee on Ethics on the conception and implementation of the tool every step of the way.”

Still, it highlights how mixing public service and private business can raise ethics questions.

Wolf told The Times that none of Findraiser’s investors have business before Congress, but she declined to reveal the names of the backers.

The fair market value of Findraiser is between $100,001 and $1 million, according to campaign finance documents filed with the state this month.

Swalwell stated on the documents that he is a part owner. Besides the Congress member and Wolf, the other member of the company listed with the state is Paul Mandell, who runs an event business.

The company’s website boasts that it provides a “straightforward AI-powered chatbot that supercharges your fundraising database searches. This first-of-its-kind tool sits on top of your political fundraising database, allowing you to ask simple, intuitive questions and receive the results you need instantly.”

The website also contains testimonials, including from former Democratic National Committee Chair Jaime Harrison, who says Findraiser provides the AI technology that makes it “easier than ever for campaigns to connect with the right donors and raise what they need to win.”

The amount of money campaigns are paying to use Findraiser is nominal, federal campaign finance records show. During the 2025-26 cycle, Swalwell’s campaign for Congress reported paying Findraiser $6,630. His campaign for governor paid the company $975.

Wolf, in an interview with The Times, declined to provide details about the company’s staff or how much it charges customers.

In her interview with the political podcast “The Great Battlefield,” she recounted that the writers’ strike was the impetus for Findraiser and said Swalwell came up with the name.

She conceded that it is “pretty unusual” for a member of Congress to start a company with his chief of staff. She also said there was “a lot of ethics back and forth — of lawyers and all of that, to make sure that we were aboveboard and that everything is kosher.”

Among other things, Findraiser has helped Swalwell’s campaigns pull in more money, she said. For example, the campaign could identify donors who gave small amounts to Swalwell but larger checks to other politicians, Wolf said.

“We’ve been able to set up meetings with people like that, and they’ve increased their contributions.”

Aside from Wolf, one other staff member who works for both Swalwell’s campaign and his government office is also being paid via a contract to do digital work for Findraiser, Wolf confirmed.

Michael Beckel, director of money in politics reform at Issue One, a bipartisan advocacy group, said that although there is no prohibition on a member of Congress hiring his own company, voters may perceive an issue.

“Voters may see self-dealing as evidence that a candidate is prioritizing personal enrichment over public service, which damages confidence in elections and governmental institutions,” he said.

“If donors give money knowing it will personally benefit the candidate, that undermines the integrity of the political system.”

Swalwell’s campaign declined to respond to Beckel’s statements.

Wolf in her podcast interview last year said the business was “going really well.”

“We have PACs that use it. We have first-time candidates, as well as 20-year incumbents who are using it. We have congressional races and Senate races,” Wolf said.

Around 2024, the company began offering beta testing, she said.

“Obviously, both Eric’s and my network are people who are in the political space and just in our day to day, as we were talking to people, we had people say, ‘Well, I want to use it,’” Wolf said. “And so we had a group of people who ended up beta testing.”

A spokesperson for Swalwell’s campaign said that “Findraiser spread through word of mouth among campaigns across the country. Any decision by a campaign or candidate to utilize the tool is based on their choice and their organization’s strategic prioritization.”

The Times contacted 16 congressional campaigns that reported using Findraiser in recent federal filings. None would tell The Times how they came to hire the company.

Both Schiff and Gomez have endorsed Swalwell in his campaign for governor.

Schiff’s paid about $2,000 for two months of Findraiser services last year. However, Wolf, in her podcast interview, said Findraiser works with Schiff “a lot.”

Ian Mariani, a spokesperson for Schiff’s campaign, said the company “is one of many campaign vendors used by our team, and it helped us engage with several people.”

Walt Disney Co. installed Josh D’Amaro as chief executive Wednesday, beginning a new chapter for the storied Burbank entertainment giant.

Bob Iger passed the reins during Disney’s virtual annual meeting of shareholders, completing the company’s high-stakes and tightly choreographed changing of the guard. After spending two decades molding Disney into a media colossus, Iger segued into a senior advisory role, which will run through December when he officially retires.

The leadership shift comes amid an upheaval in Hollywood as traditional companies wage a desperate battle for survival.

D’Amaro, in his first address to shareholders, pointed to Disney’s signature storytelling as its competitive edge.

“While others in our industry are consolidating just to compete, or struggling to be relevant in a fragmented and disrupted world, Disney is in a category of one,” D’Amaro said during a video segment at the meeting. “This next chapter will be driven by staying focused on world-class creativity, enhanced by technology, bringing unforgettable stories to audiences wherever they are.”

D’Amaro, 55, becomes the ninth leader in Disney’s 102-year history. He was selected last month by Disney board members after a two-year internal bake-off among high-ranking division leaders. Board members were impressed with his business acumen, charisma and his deep love for Disney and its fabled history.

D’Amaro inherits a company that is beloved by millions. It generates $94 billion a year in revenue and employs 230,000 people.

He faces enormous challenges as he steers the ship through a turbulent media environment and tense geopolitics. The war in Iran prompted a sharp increase in fuel costs, which could become a drag on Disney’s critically important tourism business. Executives already have signaled “headwinds” in international visitation at its U.S. theme parks this year.

Lingering Middle East tensions also could weigh on Disney’s plans for a new Persian Gulf waterfront theme park and resort near Abu Dhabi.

D’Amaro, who served as parks and experiences chief until Wednesday, got his corporate start at Disneyland 28 years ago.

“Like so many of you, my connection to Disney goes back to my childhood, long before I began my career here,” D’Amaro told shareholders. “I grew up in a Disney family. We watched ‘The Wonderful World of Disney’ on Sunday nights. I was 10 years old when my family visited Disneyland for the first time. … Disney has always been a place of imagination, innovation and infinite potential.”

Disney previously announced a $60-billion, 10-year expansion program, which D’Amaro has led. But executives must strike a balance by keeping attractions true to their nostalgic core. In Anaheim, the expansion could result in at least $1.9 billion of development.

Disney also must continue to grow its animation business and manage revenue declines from its traditional linear television channels, including ESPN and ABC. It needs to turbocharge its streaming services with compelling movies and TV shows to remain competitive with Netflix and other leaders in the field.

Disney teased upcoming fan favorites, including the May release of Lucasfilm’s “Star Wars: The Mandalorian & Grogu,” a “Bluey” feature film (the kids show featuring an animated puppy, a blue heeler) and a sequel to a “Lilo & Stitch” film for 2028.

Streaming is key to Disney’s future, D’Amaro said.

“Disney+ will continue to evolve beyond a traditional streaming service to become the digital centerpiece of our company,” D’Amaro said, calling the service “a portal that connects our stories, experiences, games, films, and more in entirely new ways.”

The company plans to unify Disney+ and Hulu later this year.

Disney also must continue to incorporate technology while safeguarding its characters and franchises.

“We will continue to develop and embrace new technologies to empower our storytellers — but never at the expense of our characters and worlds, our creative partners, or the trust people place in us,” D’Amaro said. “Because Disney at its core is a company that celebrates human creativity.”

Wednesday also marked a reorganization of the company, configured by Iger, D’Amaro and Disney’s board.

Board members recognized that D’Amaro, who has spent most of his career in the parks division, lacks deep connections among Hollywood’s writers and producers. They elevated longtime television executive Dana Walden, who had been vying for the top job, to the newly formed role of chief creative officer and the company’s first woman president.

ESPN will continue to be managed by Jimmy Pitaro and Disney Entertainment, Studios chairman Alan Bergman will remain in his influential role overseeing film studios including production, marketing and distribution, and sharing oversight for streaming programming with Walden.

D’Amaro’s total compensation package is valued at about $40 million a year, including a $2-million annual base salary, $26.2 million in annual long-term stock incentives, a cash bonus and a one-time promotion award of $9.7 million.

“Josh is a wonderful choice to lead the Walt Disney Co.,” Iger said in a pre-recorded video. “He has passion for our businesses and brands, respect for our people, and he appreciates what makes this company so unique.”

Iger is wrapping up an unprecedented 52-year career at ABC and Disney.

He first stepped into the CEO role in 2005; his first 15 years were almost magical.

Iger led acquisitions of Pixar Animation, Marvel Entertainment and Lucasfilm, the studio behind “Star Wars,” that turned Disney into a blockbuster machine. Sports king ESPN spawned staggering profits, and Disney’s theme parks set industry standards.

Disney’s former Chief Executive Bob Iger will stay on through the end of the year as a senior advisor.

(Jay L. Clendenin / Los Angeles Times)

His decision to buy much of Rupert Murdoch’s 21st Century Fox, a $71-billion deal that closed in 2019, boosted Disney’s television production, refreshed its TV executive bench, and provided a controlling stake in general entertainment streaming service Hulu. The acquisition also gave Disney access to fan-favorite franchises, including “Deadpool,” “The Simpsons,” and James Cameron’s “Avatar.”

But the purchase left Disney saddled with debt just as the COVID-19 pandemic prompted production shutdowns and closures at theme parks and sports venues. It would take several years for Disney to recover.

Iger initially passed the CEO baton to Bob Chapek in February 2020. Iger, then chairman, retired the following year but came back in November 2022 to a mess. At the time, the company was losing billions of dollars on its shift to streaming but that unit is now profitable.

Iger spent the next three years focusing on four business pillars, including improving the quality and profitability of its film studios.

During the last two years, Disney has produced five franchise films that racked up more than $1 billion in worldwide ticket sales, including “Inside Out 2,” “Zootopia 2,” and “Avatar: Fire and Ash.”

Disney and Pixar’s latest animated film “Hoppers” has hauled in $46 million at the domestic box office in its opening weekend, marking the highest theatrical debut for an original animated film since Disney’s 2017 success “Coco.”

The company is banking this year on several other films with blockbuster potential, including Disney and Pixar’s “Toy Story 5,” “Star Wars: The Mandalorian & Grogu” and Marvel Studios’ “Avengers: Doomsday.”

“I would want to be known as someone who was given the keys to this kingdom and brought it to a place that even Walt would be proud of — more storytelling, more innovation, more risk‑taking, and more creation of happiness,” Iger said during a “The Rest is History” podcast last year.

During the meeting, Iger appeared in a prerecorded video that celebrated his numerous career highlights. Shown were clips from his cub years when Iger was a newscaster with bushy black hair. His journey was depicted, including his orchestration of multi-billion-dollar acquisitions that strengthened Disney with more characters and franchises.

Iger, 75 and now gray, ended by thanking shareholders “for the trust you placed in me, for the memories we created together, and for allowing me the honor of serving,” he said. “It has meant more to me than I can say.”

Animated pixie dust twinkled on the screen, courtesy of the fairy, Tinker Bell.

“Bob, on behalf of our employees, cast members, shareholders, and fans around the world, thank you so much for your tremendous leadership, your steadfast support, and your countless contributions to The Walt Disney Co.,” D’Amaro said, as the hand-off was complete.

“You’ve set an incredible example for all of us. … You will be missed,” D’Amaro said.

There was little fanfare during the business portion of the investor meeting.

The company’s slate of board directors were elected with 93% of the vote. Shareholders also approved executive compensation packages with about 85% of votes.

Shareholder-led proposals to compel reports on charities eligible for Disney’s gift-matching program, a review of the company’s accessibility practices in its theme parks for disabled guests, and a push for cumulative voting at future meetings all failed to muster support.

Disney shares closed at $99.41, down roughly 1% on the day.

Disney has a new captain, and his eyes are on the stars.

Taking over the reins from Bob Iger on Wednesday, new chief executive Josh D’Amaro signaled a bold shift for the entertainment giant: a future where emotional storytelling remains the “North Star,” but cutting-edge technology provides the fuel.

From ESPN to the Magic Kingdom, D’Amaro said in his first letter to employees as the top boss that his mission is to turn a century of nostalgia into a more personal, high-tech reality for fans worldwide.

“Used thoughtfully, it can empower our storytellers, strengthen our capabilities, and help us create more immersive, interactive and personal ways for people to experience Disney,” he wrote in the Wednesday morning note.

D’Amaro also said he wants the sprawling company, which includes film and TV studios, a tourism division, streaming services and live sports programming, to operate as “one Disney,” saying the global businesses all play a role in deepening consumers’ relationship with the Mouse House.

That connection people have with Disney’s brand is key to the company’s future. Consumers have more film, TV and experiences to choose from than ever, meaning Disney needs to distinguish itself among competitors.

To do that, D’Amaro plans to focus on the emotions consumers feel when they encounter Disney. As an example, he reminisced about his own first visit to Disneyland more than 40 years ago.

He recalled the joy on his father’s face as the two rode Peter Pan’s Flight together. And when they soared over the miniature version of London on the ride, he remembered his father leaning in and saying, “See, I told you. It feels like we’re flying!”

“That feeling of flying I had on Peter Pan all those years ago is still real to me,” he wrote in the Wednesday morning note. “And today, I am honored to move forward with all of you — with ambition, optimism, and absolute confidence in what we can build together.”

That new era also included a goodbye to Bob Iger, who handed over the reins Wednesday and now moves into a senior advisory role for the rest of the year before his planned retirement.

The company paid tribute to Iger in a video during Disney’s annual shareholders meeting Wednesday morning.

With clips from his earliest public appearances as Disney’s CEO, a highlight reel of the acquisitions the company made under his tenure and even a nod to his previous career behind the anchor desk, the video highlighted Iger’s legacy at the company and the role he played in bulking up Disney’s franchises, global theme parks, sports and streaming platforms.

When asked in the video about where he’ll go from here, Iger laughed and replied, “To Disneyland.”

In a pre-recorded speech, Iger said his time at Disney has spanned much of his life and that he never expected to become CEO of the company — much less twice.

“Over the years, we experienced extraordinary change and faced real challenges that were particularly profound in the last three years,” Iger said. “It was daunting at times, but through it all, what sustained me was the passion I saw every day from great storytellers, innovators, leaders and people around the world.”

In his parting remarks during that speech, he expressed confidence in the new leadership team of D’Amaro and Dana Walden, who is now president and chief creative officer of the company.

“I will be cheering on Josh, Dana and all of you as I sail off into the sunset,” he said. “So thank you for the trust you placed in me, for the memories we created together, and for allowing me the honor of serving. It has meant more to me than I can say.”

Edison International boosted the pay of its top executives last year despite their responsibility for the safety of the company’s power lines before the devastating Eaton fire, which destroyed a wide swath of Altadena and killed 19 people.

Although the company cut cash bonuses for its senior executives, citing the wildfires, their overall compensation went up substantially as the utility’s profit soared in 2025.

Pedro Pizarro, chief executive of the parent company of Southern California Edison, received $16.6 million in cash, stock and other compensation last year, up 20% from 2024, according to a new company filing.

Steven Powell, president of Southern California Edison, received compensation totaling $6.5 million last year, up from $3.9 million in 2024 — a jump of more than 65%.

The utility’s transmission equipment is suspected of igniting two wildfires on Jan. 7, 2025, including the Eaton fire, which left thousands of families homeless.

The Times earlier detailed how Edison fell behind in performing maintenance on its aging transmission lines — work that it had told state utility regulators was needed. County prosecutors are investigating whether Edison should be criminally charged for its actions before the fire.

The government investigation into the cause of the fire has not been released and Edison has denied that it acted negligently. Pizarro has said a leading theory is that a century-old transmission line, which the company had not used for 50 years, may have briefly reenergized, igniting the fire.

A state law championed by Gov. Gavin Newsom in 2019 protects utilities from paying for the damage due to fires sparked by their equipment. When it passed, Newsom touted the law’s requirement that utilities must tie executive compensation to their safety record, saying it would keep them accountable.

The law said that a utility “may” consider tying 100% of executive bonuses to safety performance and “denying all incentive compensation in the event the electrical corporation causes a catastrophic wildfire that results in one or more fatalities.”

Edison said in the new filing that the company’s board members who determine executive compensation decided to decrease the cash bonuses of Pizarro, Powell and Jill Anderson, the utility’s chief operating officer, because of the 2025 wildfires.

Pizarro’s cash bonus was cut by more than $1 million while Powell’s was trimmed by $442,000, according to the filing. Anderson lost out on $244,000.

The company, based in Rosemead, said its decision to cut the three executives’ cash bonuses “was not a reflection of the performance of the company or these executives.”

Despite those cuts, the executives’ total pay of salary, bonuses, stock and other compensation rose, according to the filing. That’s because Edison ties most executive compensation not to safety, but to the company’s financial performance.

And last year, Edison’s profit jumped more than 200% — from $1.3 billion in 2024 to $4.5 billion — despite the Eaton disaster.

The profit increase resulted from the protections from wildfire damage provided to Edison by the 2019 law, as well as a 13% hike in customer electricity rates in October.

The utility attributed the higher electric bills to several increases that it successfully lobbied the California Public Utilities Commission to approve. All five members of the commission were appointed by Newsom.

Scott Johnson, an Edison spokesman, said Tuesday that Pizarro and other company executives holding stock took a financial hit after the fires when the price plummeted.

Before the January fires, Edison International’s stock price was about $80. It fell to $50 the next month. It has recovered much of its value, closing on Tuesday at $72.92.

Edison is facing hundreds of lawsuits by victims of the fire. The suits claim it acted negligently, including by failing to remove the old, dormant transmission line in Eaton Canyon.

The lawsuits also blame Edison for not preventatively shutting down its transmission lines Jan. 7, 2025, despite the dangerous Santa Ana winds.

Pizarro has said the winds didn’t meet the company’s threshold in place at the time for turning off those high-voltage wires.

“Our deepest sympathies remain with all those affected, and this loss reinforces our commitment to public safety and wildfire risk mitigation,” Pizarro and Peter Taylor, chairman of the parent company’s board, wrote in a letter to shareholders that was released with the details on executive compensation.

The two executives added that the company’s “long-term objective remains unchanged: to significantly reduce wildfire risk while improving safety, reliability and affordability of electric service.”

Edison is now offering to compensate Eaton fire victims, including those who lost their homes, family members, businesses and apartments. The offer requires the victims to give up their right to sue the utility. Many survivors say the utility’s offer falls short of what they lost.

Pizarro and Taylor wrote that as of March 4, more than 2,500 claims had been submitted through the program. So far, Edison has extended offers to roughly 600 victims submitting claims and made payments totaling $31 million to 212 of those people, they wrote.

The utility also has begun settling claims of property insurers that covered Altadena homes that were destroyed or damaged, paying out hundreds of millions of dollars. The settlements will help cover the insurance companies’ losses.

Edison has told its shareholders that it expects most or all of those payments to victims and insurers to be covered by a $21-billion state wildfire fund that Newsom and lawmakers created as part of Assembly Bill 1054, which became law in 2019.

Critics say the law went too far, allowing a utility to allegedly spark a deadly wildfire without financial consequences to the company or its executives.

“The predictable outcome of continuing to protect shareholders and executives from the consequences of their own negligence is not theoretical. It is observable. More catastrophic fires,” Joy Chen, executive director of the Eaton Fire Survivors Network, wrote in an email to state wildfire fund administrators this year.

Johnson responded, saying,”Our motivation to prevent fires and any incidents is to be good neighbors and provide affordable and resilient energy. There is nothing more important than safety.”

Taylor was on the board committee that approved the compensation package for Pizarro and other top executives. For his work chairing the board, Taylor received cash and stock compensation of more than $500,000.

Johnson said Taylor’s compensation was based on “typical board chair pay” at other utilities.

The new filing said Pizarro’s total compensation of $16.6 million was 75 times the median Edison employee’s total compensation of $220,000.

The present value of Pizarro’s pension is more than $19 million, the report said.

The company is facing a challenge from one of its shareholders — John Chevedden of Redondo Beach, according to the filing.

Chevedden is asking the company’s shareholders to vote to approve his proposal that would require Pizarro and other Edison executives to hold at least 25% of the stock they had received as compensation until they reach retirement age.

He said that requiring utility executives to hold a significant portion of their stock until retirement would focus their efforts on the company’s long-term success.

Chevedden pointed to “unfavorable news reports,” including the U.S. Department of Justice’s lawsuits against Edison for the Eaton fire and 2022 Fairview blaze, which killed two people in Riverside County.

Edison’s board urged shareholders to vote against Chevedden’s proposal before the company’s annual meeting April 23.

The board said the company already had guidelines that “closely align the interests of officers with the long-term interests of our shareholders.”

Live Nation, the ticketing giant that reached a tentative settlement with the Department of Justice last week, remains under fire.

A coalition of more than 30 states that had joined the original lawsuit filed in 2024 is refusing to accept the $200-million settlement, causing the trial to resume this week in Manhattan’s Federal Court.

The settlement with the Justice Department requires Beverly Hills-based Live Nation to open Ticketmaster to rival ticket sellers, force the company to open select venues to competing promoters and cap service fees at 15%. California is one of the key states still involved in the trial.

But those steps fall short, critics say.

“It’s clear that Live Nation has manipulated the market and made itself untouchable by competitors, hurting artists, hurting fans, hurting venues, all the while, raking in the cash,” said California Atty. Gen. Rob Bonta at the Capitol Forum conference last week. “Not because it’s a better service or product, because it acted illegally and created a monopoly.”

U.S. senators have also chimed in. Minnesota’s Amy Klobuchar recently introduced the Antitrust Accountability and Transparency Act to strengthen the review of antitrust settlements. Klobuchar said in a release that it’s “clear the American people got the raw end of the deal.”

And Connecticut’s Richard Blumenthal released a report that provides new details into the inner workings of Ticketmaster and urges attorneys general across the nation to reject the settlement.

Blumenthal said that the Trump administration’s settlement with Live Nation will keep consumers vulnerable to Ticketmaster’s “anticompetitive practices” and ultimately push “concert tickets farther out of reach for fans.”

The senator’s report, entitled “So Casually Cruel: How Ticketmaster’s Monopoly Supercharges Prices and Fees,” examined over 100,000 documents and Ticketmaster’s revenue data. The report argues that the company leveraged its market control to make tickets available on the resale market before they were available to the general public in an effort to hike prices and boost profits.

“The ticketing market is broken,” Blumenthal said in a statement.

In its own statement, Ticketmaster said Blumenthal’s report “misrepresents how the live events industry works” and that the problem lies in the secondary ticketing industry.

“This is why we’ve long called for industry resale reform, including price caps, while also developing tools to empower artists and protect fans,” Ticketmaster said in a statement.

Recently, Ticketmaster has backed ticketing bills like AB-1349 and advocated to Congress for an industry-wide resale cap.

Sens. Blumenthal and Klobuchar are among many industry experts who say the settlement doesn’t adequately address anticompetitive practices and falls short of protecting consumers from high ticket prices.

Under Klobuchar’s new bill, courts could have 90 days to review public comments and government responses.

“When the government prosecutes antitrust violations, the goal should be to uphold the law, lower prices, and protect consumers and small businesses,” Klobuchar said in the statement.

Lindsay Owens, the executive director of the economic policy nonprofit Groundwork Collaborative, said the settlement will end up being “incredibly costly for concertgoers, performers, and independent venues.”

“California and 35 other states are standing up for Americans who are sick and tired of being ripped off and having to scrimp and save to enjoy a night out,” Owens said in a statement.

This ongoing trial is one of several major legal battles the ticketing giant is facing. The company is also being sued by the Federal Trade Commission and is dealing with a handful of class-action lawsuits from groups of concertgoers.

Times staff writer Meg James contributed to this report.

Walt Disney Co.’s incoming president and chief creative officer, Dana Walden, has unveiled her leadership team, which includes several familiar faces from the company’s film, television and marketing units.

Walden will become Disney’s first woman president on Wednesday. She will report to Josh D’Amaro, who will succeed Bob Iger as Disney’s chief executive, following the company’s annual meeting with shareholders and its high-profile leadership handoff.

Walden’s senior team includes her longtime creative partner, Alan Bergman. As chairman of Disney Entertainment and Studios, Bergman will continue to oversee Disney’s film studios, including production, marketing and distribution.

Bergman also will retain oversight of Disney’s streaming programming in concert with Walden.

Disney executives Joe Earley and Adam Smith were named co-presidents of Disney’s entertainment direct to consumer offerings — Disney+ and Hulu. Both executives will be responsible for strategy and financial performance and report to Walden and Bergman.

Earley and Walden worked together when they were Fox executives; Earley will also serve as head of content strategy.

Smith continues in his role as Disney Entertainment chief product and technology officer. He also will continue to collaborate with ESPN Chairman Jimmy Pitaro on matters related to ESPN and ESPN+.

Debra OConnell will step into a newly-formed role as chairman of Disney Entertainment Television.

She will have a broad TV portfolio that includes ABC Entertainment, Disney-branded cable channels, Hulu Originals as well as programming from National Geographic, 20th Television and 20th Television Animation.

OConnell will continue to oversee ABC News and the ABC-owned television stations, including KABC-TV Channel 7 in Los Angeles.

Disney’s incoming president Dana Walden has established her senior leadership team.

(Richard Shotwell/Richard Shotwell/Invision/AP)

Sean Shoptaw, who serves as executive vice president for games and digital entertainment, and his organization, will shift from Disney Experiences and into Walden’s division.

Shoptaw oversees Disney’s games business and its collaboration with Epic Games to develop a Disney universe connected to Fortnite.

John Landgraf remains chairman of FX and will continue to report directly to Walden.

Asad Ayaz, who is chief marketing and brand officer, has an influential remit across Disney’s various business segments. He will report to D’Amaro and Walden.

“The strength of Disney has always been the emotional connection between our stories and the people who love them,” Walden said in a statement. “As fans engage with Disney across more formats and platforms than ever before, we are bringing together the full power of our creative businesses to build an even more connected experience for audiences.”

NBCUniversal is cutting “Access Hollywood” and several other of its daytime talk shows, effectively ending its first-run syndication business as daytime television atrophies.

The company confirmed that “Access Hollywood,” and its counterpart “Access Live,” will be coming to an end in September. The shows, produced in Los Angeles, are currently hosted by Mario Lopez, Kit Hoover, Scott Evans and Zuri Hall.

Talk shows “Karamo” and “The Steve Wilkos Show,” produced out of NBC’s facility in Stamford, Conn., are also shutting down. The programs have already completed their production for the season and will run through the summer.

NBC previously announced that “The Kelly Clarkson Show” is also ending later this year after seven seasons.

“The Steve Wilkos Show” ran for 19 seasons. The host is a former bouncer for “The Jerry Springer Show.”

Francis Berwick, chairman of Bravo and Peacock unscripted, said in a statement that the company will continue to distribute library episodes of its talk programs and network shows such as “Law & Order.” But NBCU’s days of launching series for daytime and the hour before prime time are over.

“NBCUniversal is making changes to our first-run syndication division to better align with the programming preferences of local stations,” Berwick said. “The company will remain active in the distribution of our existing program library and other off-network titles, while winding down production of our first-run shows.”

“Access Hollywood” was first launched by NBC in 1996 as a competitor to CBS Media Ventures’ “Entertainment Tonight.”

First-run syndication allows producers to sell TV shows to stations on a market-by-market basis, instead of distributing them through a single network. This model was a major success for talk show staples such as Oprah Winfrey and Ellen DeGeneres.

But streaming has pulled viewers away from traditional television, as viewers can watch their favorite shows and movies anytime on demand. The audience levels needed to generate enough ad revenue to support first-run programming in daytime no longer exists.

Many TV stations are filling their hours with more local news as daytime talk goes away.

It has been nearly three years since Hollywood writers went on a historic strike that lasted 148 days and ushered in an extraordinary period of labor unrest that virtually shut down the film and TV business.

Now, writers are poised to commence another round of bargaining with the major studios on a new three-year film and TV contract. Few observers think the union is girding for another showdown, especially at a time when many of its members are struggling to find work amid media consolidation and belt-tightening.

But in advance of negotiations that begin on Monday , union leaders are eager to dispel any perception that they might have scaled back their demands.

“Our members have shown many times that they’re willing to fight for what we need as a collective group,” WGA West President Michele Mulroney said in an interview. “And there’s no exception here.”

With its current contract expiring on May 1, the WGA hopes to improve its members’ healthcare plans, increase streaming residuals and expand AI protections.

Michele Mulroney speaks as the Screen Actors Guild (SAG-AFTRA) and Writers Guild of America (WGA) join GLAAD in releasing the 11TH Annual GLAAD Studio Responsibility Index at The Village at Ed Gould Plaza Los Angeles LGBT Center in Los Angeles, California, on September 14, 2023.

(Michael Tran/AFP via Getty Images)

Ellen Stutzman, the union’s executive director, said despite popular belief, the studios have weathered the transition from cable television to streaming “very well,” citing their efforts to maximize revenue with streaming bundling, rising subscription fees and advertising revenue.

“Writers are watching as Netflix and Paramount are fighting it out to acquire Warner Bros… Paramount is spending $81 billion,” said Stutzman. “There’s money for a fair deal for writers.”

The union leaders agree that this year’s negotiations are all focused on the sustainability of a writer’s career.

A spokesperson from the Alliance of Motion Picture and Television Producers, which represents the major studios in negotiations, said in a statement that they look forward “to engaging in a constructive and collaborative bargaining process with the WGA. Through continued good-faith dialogue, we are confident we can reach balanced solutions that support talented writers while sustaining the long-term success and stability of our industry and its workforce.”

A top priority for the WGA is to increase the caps that companies contribute to the union’s healthcare plan. Union officials say the current cap has remain unchanged for two decades as healthcare contributions have steadily declined due to fewer writers working.

AI is also top of mind for the WGA.

In 2023, the guild secured various AI protections by establishing that AI isn’t a writer and nothing it produces is considered literary material.

But as major studios start to make deals with AI companies, like Disney’s $1 billion investment into OpenAI’s Sora platform, many writers are concerned about how their work could be used.

“AI is using [studios’] IP, which is stuff that we wrote to license these models,” said John August, the co-host of the “Scriptnotes” podcast and WGA’s negotiating committee co-chair. “With the Sora deal, it seems clear that the companies intend to monetize this IP for use with AI.”

August says the union will be skeptical toward arguments that it’s still too early to seek more safeguards around such a nascent industry, citing the union’s past history with the rise of DVDs and the internet and how profoundly those technologies changed the compensation for writers.

“If you’re taking the work that we created to generate AI outputs, we are owed money. They’re using our work to do something down the road,” added August.

WGA’s negotiating committee also is looking to boost streaming residuals, expand the minimum number of people allowed in a writers’ room and add protections for scribes working on pilots.

“We very much hope that lessons were learned in 2023 and that the AMPTP will come to the table ready to take our proposal seriously and to make a fair deal, and to do that quickly,” Mulroney said. “It provides stability for the companies and for our membership. It’s better for everybody.”

WGA is entering contract negotiations nearly a month after the actors’ union, SAG-AFTRA, began its bargaining sessions. Last week,
the AMPTP said it was extending negotiations another seven days.

Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.

Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani Resort and Spa in Hawaii.

Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.

Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.

“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”

Mazloum had been about a year into his tenure at Disneyland. Prior to that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.

In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.

Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.

The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.

In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said will likely factor into its earnings for the fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.

Times staff writer Todd Martens contributed to this report.

It took months of effort, lobbying and mounds of cash for Paramount Skydance to finally clinch its prize of Warner Bros. Discovery.

Now, however, the David Ellison-led company faces a long and challenging road to merge these two media giants and set it up for a successful future.

Key to that will be striking a delicate balancing act between investment and paying down its debt load of $79 billion, which is massive even by Hollywood standards.

Notably, the figure is even greater than Warner’s nearly $55 billion of debt post-merger with Discovery, a burden that hamstrung the company for years and led to successive rounds of layoffs and relentless cost cutting.

Last week, my colleague Meg James wrote about the concerns Fitch Ratings and S&P Global Ratings have about Paramount’s credit, given the mountain of debt the company will now carry. Fitch downgraded its credit to BB+ — “junk” territory — from BBB-, and S&P Global Ratings placed the company’s ratings on “negative watch.”

Carrying that amount of debt comes with significant risks.

For one, a company with a lot of debt that is “junk”-rated is going to be under pressure to cut costs. “Junk status” means a company’s debt is rated below the level that credit agencies consider investment grade. Such a rating means it can be more expensive to refinance or take out new loans, raising the cost of capital.

Paramount executives have already said they plan to find $6 billion in “synergies” within three years, though they’ve emphasized that the majority of their cost cutting will come from “non-labor sources,” including consolidating their streaming technology and cloud providers, combining IT systems across the company and “optimizing the combined real estate footprint and the broader corporate overhead,” among other ideas.

And as I wrote last week, most Hollywood observers and those familiar with Ellison’s plans predict that Paramount will be forced make steep layoffs to offset the cost of the deal and eliminate overlapping roles and functions between the two historic studios.

At the same time, in order to compete with well-funded rivals, Paramount-Warner Bros. will also need to invest in new programming — something that can be difficult for a heavily leveraged business .

Paramount executives have said their cost-cutting efforts won’t include a reduction in production capacity, and Ellison has reiterated that there will be continued spending on programming. Beyond content, he’ll also likely need to invest in improving the technology along with the look and feel of the streaming platforms.

“Whether or not they have the capital to do all of that and to try to get their leverage down is something I’m curious to hear about,” said Naveen Sarma of S&P Global Ratings.

It’s possible that Paramount may not be able to pursue a good opportunity in the future because it has used up all its debt capacity and can’t raise additional financing, said Kelly Shue, a professor of finance at Yale School of Management.

“It might cause them to underinvest in good projects in the future,” she said.

And the company needs to spend on good projects.

The economics of this deal hinge on the combined heft of Paramount and Warner’s two libraries and valuable intellectual property, which will unite Harry Potter, DC Studios, SpongeBob SquarePants and “Mission Impossible” all under one roof.

Building up its streaming platform, which will combine Paramount+ with HBO Max, is important for competing with the behemoth Netflix, which bowed out of the Warner Bros. auction.

And on the theatrical side, Ellison has said the combined company will release 30 films a year — 15 from each studio. That would be a substantial increase from 2025, when the two companies released 18 films — eight at Paramount and 10 from Warner Bros.

“While studios content budgets might not come under immediate focus for cost cutting, we have a hard time seeing no content costs savings considering opportunities to reallocate or pull back from at least the linear networks,” MoffettNathanson’s Robert Fishman wrote in a note to clients last week.

Of course, all of this would come only after the deal’s completion. On the immediate horizon, Paramount needs to secure international regulatory approval as well as at home. Although state attorneys general including Rob Bonta of California have said this is not a “done deal,” most analysts expect that any opposition there is only likely to slow — not stop — the transaction.

A very masculine year in film

A recent study from San Diego State University put a number on something we all suspected: The percentage of female protagonists in the top 100 films last year dropped. A lot.

Female protagonists made up just 29% of the top-grossing films in 2025, down from 42% in 2024, according to the university’s annual study of women’s representation in top films. A selection of film titles from the last year says it all: “The Running Man,” “A Working Man,” “Superman.”

That 29% figure has, unfortunately, been very consistent over the years — it was the same in 2016 and has largely hovered in the range of high 20s to low 30s for the last decade, with a few exceptions (40% in 2019 and 42% in 2024).

Focusing on just the protagonists in the top 100 films means that small fluctuations can change that percentage greatly.

But when the study looked at a broader sample size of the more than 1,900 characters in those films, the results weren’t much better.

The percentage of women in speaking roles was 38%, up just 1% from 2024. And the percentage of major female characters declined to 36% in 2025 from 39% the year before.

The fact that these figures have not moved much, in spite of the countless panels and think pieces about the issue, suggests there isn’t much will in Hollywood to change, said Martha Lauzen, author of the study and founder and executive director of San Diego State’s Center for the Study of Women in Television and Film.

“Representation is social relevancy and social capital,” she told me. “So when you see fewer women than men, that’s a message.”

Stuff We Wrote

Film shoots

Number of the week

Walt Disney Co. and Pixar’s “Hoppers” came in big at the box office this weekend with a $46-million opening in the U.S. and Canada — the strongest domestic debut for an original animated movie since “Coco” in 2017. Globally, the film made $88 million.

The reception is an encouraging sign for original animated movies, which have largely struggled at the box office since the COVID-19 pandemic while their sequel counterparts have shined.

What I’m watching

Several months ago, some friends and I started a movie club, where we each nominate a film we want to watch and we rotate who gets to make the final selection. Last week, we watched the 1996 comedy “First Wives Club,” which I had never seen but loved for its goofy antics, unexpected song-and-dance number and the focus on the enduring power of female friendships.

As Hollywood writers continue contract negotiations with major studios, one topic remains front and center: the role of artificial intelligence.

On Friday, the Writers Guild of America released a list of contract demands, which 97% of the union membership supports. Though some details have yet to be revealed, many of the union’s asks involve expanding protections over the use and abuse of AI, in addition to improved health coverage and higher residuals.

AI and streaming residuals were central issues in strikes by actors and writers in 2023.

WGA’s current contract, which expires May 1, established that AI isn’t a writer and nothing it produces is considered literary material. It prohibits companies from giving writers AI-generated scripts for a rewrite fee or requiring writers to use AI software, and a company must disclose whether any written materials were developed using AI.

The union says its current demand is to simply “expand” these protections. Other priorities include increasing contributions to the WGA benefit plans, raising minimums for “page one” rewrites and boosting streaming residuals.

The Screen Actors Guild-American Federation of Television and Radio Artists has identified similar issues as it negotiates a new contract for actors. Last week, SAG-AFTRA and the bargaining group for the major studios disclosed that they are extending their negotiations for seven days. The discussions began Feb. 9.

The union, whose contract expires June 30, is expected to propose what has been called the Tilly tax, a fee that studios would have to pay to the union in exchange for using an AI actor. This demand is in response to the first AI actor, Tilly Norwood, being introduced to Hollywood. Though the bot has yet to star in a major project, the fear of AI-generated characters taking jobs is real for many actors. The bot’s creator, Xicoia, also recently announced the expansion of its AI actor universe, called the “Tillyverse.”

WGA’s negotiations are set to start Monday and will be led by Ellen Stutzman. The studios will be represented by the Alliance of Motion Picture and Television Producers’ new president, Gregory Hessinger.

The negotiations are happening as WGA West’s own staff members have been on strike, forcing the guild to call off its L.A.-based award show. The staff union, with more than 100 employees, are similarly demanding higher pay and protections against AI.

Live Nation has reached a settlement with the Justice Department in an antitrust case that put the entertainment giant at risk of being separated from Ticketmaster.

The ticket vendor’s settlement offer was announced, in a court hearing on Monday, less than a week after the long-awaited trial began. With pending approval from the judge, Live Nation will have to pay damages to the suing states and allow competitors to sell tickets on its platform. Media reports have said the company agreed to pay more than $200 million as part of the settlement.

The settlement caught Judge Arun Subramanian off guard. He said no one informed him of the tentative deal until late Sunday, even though a term sheet for a possible settlement was signed on Thursday, according to the Associated Press.

A 12-person jury was seated last Tuesday in a Manhattan federal courthouse and the trial had reached witness testimony by the end of last week. The complaint was filed in 2024, when the federal government, 39 states including California and the District of Columbia, alleged that Live Nation and Ticketmaster have monopolies in various aspects of the live music industry, such as concert promotion, venue operations, artist management and ticketing services.

Live Nation could not immediately be reached for a comment.

Many of the large monopoly claims were thrown out during a pretrial hearing last month, including an allegation that Live Nation’s industry power raises ticket prices and harms consumers. But the new settlement offers major structural changes to the company’s ticketing services.

If the trial judge approves the settlement, the Beverly Hills-based company will have to open parts of its platform to rival ticketing operators. This means third-party sellers like SeatGeek could list tickets and have access to Ticketmaster’s technology.

Another key claim in the lawsuit concerned Ticketmaster’s alleged exclusivity contracts, which required artists who booked Live Nation-owned venues to also use its ticketing services. The settlement now limits these contracts to four years and allows venues to place a number of its tickets on competing platforms.

The original lawsuit also argued that Live Nation manages more than 400 artists and controls more than 265 venues in North America — all while Ticketmaster simultaneously controls around 80% of the primary ticket marketplace and is increasing its involvement in the resale market. Under the pending legal agreement, Live Nation would have to divest more than 10 of its venues and Ticketmaster would also have to cap service fees at 15%.

Serona Elton, attorney and interim vice dean at the University of Miami’s Frost School of Music, said this outcome can be understood in two ways — it’s either a win that addresses anti-competitive behaviors or a deal that does not go far enough.

“It is important to understand that it is not illegal to be a monopoly and control a large portion of the market,” said Elton in a statement. “What is illegal is the use of anti-competitive tactics. In analyzing the settlement, the question to ask is if it does enough to address the alleged tactics and the harm they may have caused.”

Elton added that venues could benefit from these adjustments, but “music fans should not think this is going to bring ticket prices down to an affordable level as there are other causes behind the sky-high ticket prices.”

Stephen Parker, the executive director of the National Independent Venue Association, similarly expressed some skepticism about the potential settlement.

“The reported settlement does not appear to include any specific and explicit protections for fans, artists, or independent venues and festivals,” he said in a statement.

“Reported details also indicate that ticket resale platforms could be further empowered through new requirements for Ticketmaster to host their listings, which would likely exacerbate the price gouging potential for predatory resellers and the platforms that serve them,” Parker added . “If these facts are true, NIVA views this as a failure of the justice system.”

A settlement could mark the potential end to one of the major legal battles Live Nation is facing. The company is also being sued by the Federal Trade Commission and is dealing with a handful of class-action lawsuits from groups of concertgoers.

After the news of the settlement broke, Live Nation’s stock jumped over 5% to $164.03.

Paramount’s $111-billion deal to acquire Warner Bros. Discovery will put two of the most storied journalism brands — CNN and CBS News — under one roof.

The combination has been proposed before with the aim of consolidating news-gathering costs. Those plans fell apart largely over who would be in control.

But if the Paramount-WBD transaction is approved by regulators, CNN and CBS News will be forced into potentially rocky marriage where they will have to sort out leadership roles, personnel and editorial direction.

It’s still too early to determine what those moves will be and how widely they will be felt.

Last week CNN Chief Executive Mark Thompson told his troops to avoid “jumping to conclusions about the future.”

But what is certain is that every permutation will be scrutinized closely due to the fraught relationships both CNN and CBS News have with the Trump administration.

“There have been many conversations over the years about combining CBS News and CNN,” said Jon Klein, a digital media entrepreneur who previously held leadership roles at both organizations. “But this time, it’s different. The business case always made sense — but today you’ve got the overlay of the political agenda.”

Before Paramount prevailed in its bid for CNN’s parent, Paramount Chief Executive David Ellison’s father Larry Ellison reportedly discussed changes to the network with Trump. For years, Trump has made CNN the poster child of his “fake news” claims and impugned many of its journalists.

“What has David Ellison and Larry Ellison promised Donald Trump with regard to what they’re going to do with CNN?” said one former executive. “Before you even get through the hurdles of doing this, that’s the overriding question. Are they going to fire anchors Trump doesn’t like?”

There is also apprehension at CBS News, where David Ellison installed Bari Weiss as editor-in-chief in October, with a mandate to have network’s coverage appeal to the political center.

CBS News editor-in-chief Bari Weiss with Turning Point USA’s Erika Kirk at a town hall that aired Dec. 20.

(CBS Photo Archive / CBS via Getty Images)

Weiss — founder of the independent media company The Free Press — came into the role with no experience running a TV news organization, building her reputation as an opinion writer with contrarian views and a disdain for woke ideology.

The former New York Times opinion writer, who is staunchly pro-Israel, drew criticism over the weekend for putting a fire emoji over a comment criticizing New York City Mayor Zohran Mamdani’s condemnation of the U.S. military action in Iran — an unusual public reaction for the head of a major news organization.

Weiss wasted no time taking on the prestigious CBS news magazine “60 Minutes,” which has long been a stubbornly independent operation. She delayed a story on the harsh El Salvador prison used by the U.S. to house undocumented migrants saying it needed more reporting. The story’s correspondent Sharyn Alfonsi accused CBS News management of placating the White House, turning the decision into a public relations fiasco for the network.

Significant changes are coming to “60 Minutes” later this spring, with one or more of its correspondents possibly being replaced, according to people familiar with Weiss’ plans who were not authorized to comment. Weiss has also expressed interest in hiring right-leaning on-air talent for CBS News.

Weiss arrived after Paramount settled a Trump lawsuit with the dubious claim that a “60 Minutes” interview with then-Vice President Kamala Harris was deceptively edited to aid her 2024 presidential election campaign against him.

The willingness to settle the suit was largely seen as Paramount capitulating to Trump in order to get government approval of its merger with Skydance Media. The Ellisons’ tight relationship with Trump was also seen as an asset in their successful pursuit of Warner Bros. Discovery.

The stew of issues bubbling through the transactions is why most of the rank and file at CNN rooted for Netflix to prevail in its bidding for Warner Bros. Discovery. The Netflix bid for WBD did not include CNN or the company’s cable networks, which in the words of one insider would have made it “a stay of execution.”

Now CNN staffers, speaking on the condition of anonymity, are bracing for upheaval. When they look at CBS News navigating the changes under Weiss, they are reminded what they went through after Warner Bros. Discovery took over their network and tried to push the coverage to the center.

After a declaration by WBD Chief Executive David Zaslav that the network needed to be more accommodating to conservative voices — and the telecast of a rowdy Trump town hall — CNN experienced an exodus of viewers.

But the biggest fear that the merger brings is consolidation and the loss of jobs. CNN has 3,400 employees while CBS News is at around 1,000. Cost-cutting is expected to be aggressive across the combined Paramount-WBD, which will have a mountain of debt to service.

The parent companies of CBS and CNN have discussed merging or sharing news-gathering operations and on-air talent numerous times over several decades. In 2019, Viacom, the CBS News parent at the time, had a deal in place to pay CNN an annual license fee to provide international coverage.

Under that plan, CBS would have maintained a few of its signature overseas correspondents, while shuttering its bureaus around the world. But Viacom backed out of the deal.

CNN’s international coverage has long been its calling card and its likely the network will handle that reporting for CBS News once Paramount takes ownership.

Combining the news-gathering operation stateside will be trickier, as CBS News has employees and vendors that operate under contracts with the Writers Guild of America East, SAG-AFTRA and other unions. CNN is a non-union shop.

Resolving the union issue has been a snag in every previous discussion to combine CBS News and CNN over the years, according to several former executives at both outlets.

CNN news anchor Anderson Cooper in New York in 2016.

(Associated Press)

Another development worth watching is what role Anderson Cooper will play in the merged operation. Cooper signed a new deal with CNN last year, but turned down an offer to remain as a “60 Minutes” correspondent, a role he’s had since 2007.

CBS News has pursued Cooper several times over the years to be its evening news anchor. There was even a proposal in 2018 for him to helm “CBS Evening News” while keeping his nightly prime time program on CNN. That idea was shot down at CNN, where leadership believed he was unique to the network’s brand.

In a statement, Cooper cited a desire to spend more time with his two children as the reason for passing on another “60 Minutes” deal. However, associates have said his wariness over the direction of CBS News under Weiss made his decision easier.

Now Cooper is likely headed into the CNN-CBS News tent, which may make him feel a bit like Michael Corleone in “Godfather III” when he said “Just when I thought I was out, they pull me back in!”

The iPic dine-in movie theater chain has filed for Chapter 11 bankruptcy protection and intends to pursue a sale of its assets, citing the difficult post-pandemic theatrical market.

The Boca Raton, Fla.-based company has 13 locations across the U.S., including in Pasadena and Westwood, according to a Feb. 25 filing in U.S. Bankruptcy Court in the Southern District of Florida, West Palm Beach division.

As part of the bankruptcy process, the Pasadena and Westwood theaters will be permanently closed, according to WARN Act notices filed with the state of California’s Employment Development Department.

The company came to its conclusion after “exploring a range of possible alternatives,” iPic Chief Executive Patrick Quinn said in a statement.

“We are committed to continuing our business operations with minimal impact throughout the process and will endeavor to serve our customers with the high standard of care they have come to expect from us,” he said.

The company will keep its current management to maintain day-to-day operations while it goes through the bankruptcy process, iPic said in the statement. The last day of employment for workers in its Pasadena and Westwood locations is April 28, according to a state WARN Act notice. The chain has 1,300 full- and part-time employees, with 193 workers in California.

The theatrical business, including the exhibition industry, still has not recovered from the pandemic’s effect on consumer behavior. Last year, overall box office revenue in the U.S. and Canada totaled about $8.8 billion, up just 1.6% compared with 2024. Even more troubling is that industry revenue in 2025 was down 22.1% compared with pre-pandemic 2019’s totals.

IPic noted those trends in its bankruptcy filing, describing the changes in consumer behavior as “lasting” and blaming the rise of streaming for “fundamentally” altering the movie theater business.

“These industry shifts have directly reduced box office revenues and related ancillary revenues, including food and beverage sales,” the company stated in its bankruptcy filing.

IPic also attributed its decision to rising rents and labor costs.

The company estimated it owed about $141,000 in taxes and about $2.7 million in total unsecured claims. The company’s assets were valued at about $155.3 million, the majority of which coming from theater equipment and furniture. Its liabilities totaled $113.9 million.

The chain had previously filed for bankruptcy protection in 2019.

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

After years of ticketing complaints and frustrations, the trial for the Department of Justice’s antitrust lawsuit against Live Nation is officially underway.

As part of its case, the DOJ has accused Live Nation of requiring artists to use its promotional services when they play a Live Nation-owned venue. Because so many venues are owned by the company, the government claims Live Nation’s alleged practices are anti-competitive.

Jury selection began Monday in a New York federal court and opening statements are expected Tuesday for the complaint first filed in 2024. Since then, the antitrust case against the Beverly Hills-based company has been streamlined — examining whether Live Nation uses illegal anti-competitive practices and whether the company and Ticketmaster should be broken up.

The legal proceeding is expected to last around a month, with Judge Arun Subramanian, who also presided over Sean Combs’ sentencing last year, at the helm.

Live Nation’s presidents Michael Rapino and Joe Berchtold, executives from competing companies like Anschutz Entertainment Group and Irving Azoff, the former Ticketmaster CEO, are expected to testify. Musicians like Ben Lovett of Mumford & Sons and entertainer Kid Rock could also take the stand.

Key claims in the lawsuit

The original lawsuit led by a cadre of interested parties including the federal government, 39 states and the District of Columbia alleged that Live Nation and its subsidiary Ticketmaster have monopolies in various aspects of the live music industry, such as concert promotion, venue operations, artist management and ticketing services.

The lawsuit states that Live Nation manages over 400 artists and controls more than 265 venues in North America. Ticketmaster simultaneously controls around 80% of the primary ticket marketplace and is also increasing its involvement in the resale market.

Many of the large monopoly claims were thrown out during a pretrial hearing with Judge Subramanian last month, including an allegation that Live Nation’s industry power raises ticket prices and harms consumers.

The claim with arguably the greatest potential impact centers on whether Live Nation should own Ticketmaster. The two companies merged in 2010, a move that has frequently been considered controversial. Beyond the ownership of Ticketmaster, the DOJ claims Live Nation forces venues to sign exclusive contracts with Ticketmaster, barring the inclusion of other ticket vendors.

“For over a decade, Ticketmaster and Live Nation have promised reform, but meaningful competition has remained out of reach. The industry now stands at an inflection point: restore a competitive marketplace that supports innovation, or allow the status quo to continue narrowing options for American consumers,” Dustin Brighton of the Coalition for Ticket Fairness said in a statement.

“Yet the very competitors that could check this monopoly and restore balance are routinely boxed out by restrictive practices that limit innovation and reduce consumer options,” Brighton added.

Live Nation did not respond to a request for comment. When the complaint was first filed, the company called the claims “baseless.”

“Calling Ticketmaster a monopoly may be a PR win for the DOJ in the short term, but it will lose in court because it ignores the basic economics of live entertainment,” wrote Live Nation in a previous statement.

Next steps after the trial

If Live Nation loses the trial, the judge will decide how the company should be restructured, which could mean selling Ticketmaster to a competitor. Live Nation maintains the right to appeal such a decision, if it materializes, and take the matter to a higher court.

“If the court finds Live Nation violated the law, monetary penalties and behavioral commitments alone will not be sufficient,” Stephen Parker, executive director of the Independent Venue Association, said in a statement.

“The relief must be proportionate to the harm,” Parker added, “and that means structural separation of primary ticketing, resale ticketing, venue operation, national tours, advertising/sponsorship, and artist management must be seriously considered.”

Beyond the current DOJ trial, Live Nation is also facing a lawsuit from the Federal Trade Commission and a handful of class action lawsuits from groups of concertgoers.

Four days after the stunning news that Paramount Skydance would acquire Warner Bros. Discovery, Paramount executives tried to calm fears that the blockbuster deal would result in massive layoffs.

In a call Monday, Paramount Chief Strategy Officer and Chief Operating Officer Andy Gordon told Wall Street analysts that $6 billion in merger “synergies” would come from “non-labor sources” and not a “reduction in production capacity.”

Instead, Gordon said, the company would reduce costs by consolidating its streaming technology and cloud providers, finding marketing efficiencies and “optimizing the combined real estate footprint,” likely an allusion to widely anticipated plans that the new owners will consolidate operations around the Warner Bros. lot in Burbank.

Efficiencies aside, most Hollywood observers — including people who are familiar with Paramount Skydance Chief Executive David Ellison’s plans — predict that Paramount will be forced to make large-scale layoffs in order to offset the enormous costs of the mega-deal, which is valued at more than $111 billion (counting debt).

It’s a reasonable expectation, at least if history is any guide.

Many at Warner dread the kinds of cuts seen after Walt Disney Co. bought most of 21st Century Fox’s assets, resulting in thousands of layoffs as the two companies combined operations and shed redundant jobs.

In the case of Warner-Paramount, the new company will have two film and TV studios, as well as two streaming businesses, two legal departments, two marketing departments and so on. It’s doubtful these overlapping functions will survive budget cuts.

Already, consolidation plans are underway.

This week Paramount announced it would combine the two streaming services — Paramount+ and HBO Max — to reach a total of more than 200 million subscribers and better compete against the behemoth Netflix, which boasts 325 million subscribers worldwide.

Ellison was full of praise for the HBO team on Monday’s analyst call, saying the premium service was a “crown jewel” and that it will “continue to have the resources and independence to do what it does best.”

He also reiterated that there is “no intention to pull back on production,” and that the company intends to make 30 films a year — 15 apiece from Paramount and Warner Bros.

“We have all the economic incentives to make sure that we grow this business and are going to invest in content to basically achieve those goals,” Ellison said Monday.

But this deal also includes $79 billion in net debt — a staggering load that overshadows even that of the merger that resulted in Warner Bros. Discovery. That amount became an albatross around that company’s neck and led to waves of layoffs.

“What everybody’s hoping is that the noise that’s being made around prioritizing content will hold true,” said Kevin Klowden, a Milken Institute fellow focused on entertainment and technology. “But until they see that happen, it’s really a question.”

Further job losses would be a blow to an industry that has been reeling from a steady drumbeat of job cuts fueled by media consolidation, dwindling streaming profits and the migration of film and TV jobs to cheaper states and countries.

Paramount executives have said the deal is expected to close in the fiscal third quarter of this year, and Ellison said he was “absolutely confident” they will meet that goal, based on conversations with regulators.

Despite support from the Trump administration, the acquisition is not yet final. Already, California Atty. Gen. Rob Bonta said he was in communication with other states’ attorneys general about challenging the merger on antitrust grounds, saying it wasn’t a “done deal.”

And on Monday, Rep. Sam Liccardo (D-San José), Sen. Elizabeth Warren (D-Mass.) and Sen. Richard Blumenthal (D-Conn.) called on Atty. Gen. Pam Bondi and White House Chief of Staff Susie Wiles to provide details of their conversations about the merger with Ellison and Netflix co-Chief Executive Ted Sarandos, highlighting the role of politics in the auction.

Paramount plans to keep the two studios separate for now, though company executives have discussed combining operations at the Warner Bros. Burbank lot at some point, according to sources close to Paramount who were not authorized to speak publicly. That could mean a wind down at the historic Paramount lot on Melrose Avenue — and more job losses.

The anxiety over looming cuts is especially deep inside Warner, where staff are still trying to process the news, according to people I spoke with. They noted that when Netflix was the winning bidder, co-Chief Executives Sarandos and Greg Peters came to the Burbank lot and spoke with several hundred of Warner’s senior leaders and outlined their plans, giving staff more clarity about a future under their ownership. No such conversations have occurred with the Paramount team, they said.

“I think genuinely, everyone’s nervous and a little uneasy,” said one Warner Bros. Discovery employee. “With the Netflix option, people had become a little more hopeful. But this outcome is a little more frightening for the staff.”

Stuff We Wrote

Film shoots

Number of the week

After 30 years, the Ghostface killer has still got it. Paramount Pictures and Spyglass Media Group’s “Scream 7” topped the box office this last weekend with $64.1 million in the U.S. and Canada, marking a franchise-best domestic opening. Globally, the film made $97.2 million.

The film centered on original franchise actors Neve Campbell and Courteney Cox, and featured numerous callbacks to the previous movies.

But the film’s debut did not come without controversy. Pro-Palestinian groups protested outside the “Scream 7” premiere on the Paramount lot last week and called for a boycott of the film after franchise star Melissa Barrera was fired more than two years ago for her comments on the Israel-Hamas war.

What I’m watching

On Sunday, I watched the UCLA women’s basketball team dominate USC in what I think is one of the best college rivalries out there (though I’m probably biased. Go Bruins!)