An Amazon MGM Studios executive allegedly solicited kickbacks from an aspiring vendor in exchange for post-production contract awards on shows, according to a recently filed lawsuit.
Joe Eckardt, owner and president of Hollywood-based postproduction services firm Unbreakable Post, alleged that the studio’s head of postproduction, Frank Salinas, told him during a business lunch in 2023 that Salinas could “ensure” Unbreakable Post would be included as an approved vendor to bid on Amazon-affiliated projects.
Salinas would give Eckardt the target budget number for his company’s bid and “effectively guarantee that Unbreakable would be awarded the work,” the lawsuit states.
After the contract was awarded, Eckardt would then pay Salinas a percentage of the project value as a kickback, the lawsuit says.
After Eckardt refused, he alleges that his contract opportunities with Amazon dried up.
He states in the lawsuit that although he had done “substantial” work, served as a postproduction consultant or selected vendor on shows such as the Mexico, Brazil and Argentina productions of the reality series “Temptation Island” and the third season of documentary series “Coach Prime,” he was not selected by Amazon for a contract with those projects.
In 2025, Eckardt alleges that he reported Salinas’ conduct to Amazon and after six months of information gathering, the company told him that “its investigation had concluded and that the allegations were ‘not substantiated.’”
Amazon MGM Studios did not respond to a request for comment. Salinas declined to comment.
Eckardt’s lawsuit was filed Wednesday in Los Angeles County Superior Court. He alleges that he lost more than $1 million in contracts, income and future business opportunities. He is seeking a jury trial.
Two press freedom groups that own shares in Paramount Skydance are demanding to see the company’s books and internal documents, citing allegations that the company’s leaders may have promised favors to the White House to win approval for Paramount’s deal to acquire Warner Bros. Discovery.
The letter, sent Thursday to Paramount chief legal officer Makan Delrahim, says that media reports alleging that Paramount owner David Ellison and others promised favors to the Trump administration “create credible concern that Paramount leadership has offered, solicited, or effectuated a corrupt exchange,” which the groups argue would “constitute a breach of fiduciary duties” and open the company up to a “range of potential civil and criminal penalties.”
The letter cites Delaware law that allows stockholders to inspect the company’s books and records “for any proper purpose.”
Paramount declined to comment on the letter.
Among the issues raised in the letter are promises reportedly made by David Ellison and his father, Oracle billionaire Larry Ellison, that they would make “sweeping” changes at the news network CNN, which is owned by Warner Bros. Discovery.
The Ellison family acquired Paramount, which includes CBS and the storied Melrose Avenue film studio, last summer.
The letter cites changes implemented in CBS since their acquisition, including their decision to end late night television house Stephen Colbert’s show days after he characterized a settlement Paramount reached with Trump as a “big fat bribe.”
Under Ellison’s ownership, the letter says, numerous high-profile reporters have left the network and its ratings have dropped to “historic lows.”
Larry Ellison, who is backing the financing of Paramount’s proposed takeover of Warner, reportedly told White House officials that Paramount would “implement the CBS playbook” at CNN if the merger is approved, and remove anchors and commentators at the cable news network that Trump doesn’t like, according to the letter.
The effort comes just two weeks after Warner Bros. Discovery shareholders overwhelmingly approved the proposed merger. Investors have supported the Larry Ellison family takeover, which would become the biggest Hollywood merger in nearly a decade. The deal would pay Warner stockholders $31 per share — four times the stock price a year ago.
The letter was written on behalf of the Freedom of the Press Foundation, which develops secure communication tools for journalists and tracks violations of press freedom, and Reporters Without Borders, which tracks press freedom globally.
The organizations are being represented by former federal prosecutor Brendan Ballou, who established the Public Integrity Project this year to challenged alleged government corruption, as well as Delaware attorney Ronald Poliquin.
The missive, which could be a precursor to a lawsuit, opens another avenue of attack against the controversial $111-billion deal, which would transform the smaller Paramount into an industry titan.
With Warner Bros. Discovery, the Ellisons would also control HBO, TBS and the vast film and TV library of Warner Bros., which includes the Harry Potter, DC Comics, and Scooby-Doo, in addition to CNN.
Paramount, led 43-year-old David Ellison, wants to finalize its Warner Bros. takeover by the end of September. President Trump favors the deal; he has long agitated for changes at CNN.
Politicians, unions and progressive groups separately have pressed California Atty. Gen. Rob Bonta to scrutinize the proposed merger, hoping that he brings an antitrust lawsuit in an attempt to upend the deal.
More than 4,000 film industry workers, including Ben Stiller, Bryan Cranston, Ted Danson, J.J. Abrams, Jane Fonda and Kristen Stewart, have signed an open letter imploring Bonta and other regulators to block the merger. The group lamented the proposed tie-up, saying it “would reduce the number of major U.S. film studios to just four.”
Opponents fear the consolidation would lead to massive layoffs and diminish the quality of programming that Warner Bros., CNN and HBO are known for.
Hollywood has sustained thousands of layoffs over the last seven years since Walt Disney Co. swallowed Fox’s entertainment assets in another huge merger. In addition, the film production economy hasn’t recovered from shutdowns during the 2023 labor strikes. An estimated 42,000 entertainment industry jobs were lost from 2022 and 2024.
On Thursday, 34 California Democrats in Congress also sent a letter to Bonta, encouraging him to look closely at the merger.
The deal is expected to become one of the largest leveraged buyouts ever.
Ballou, who is working with the press freedom groups, previously served as a Justice Department special counsel with expertise in private equity transactions.
He resigned from the Justice Department in January 2025 when Trump returned to office. In his book, “Plunder: Private Equity’s Plan to Pillage America,” Ballou examined large leveraged buyouts and found that many of which resulted in bankruptcies.
Kyle Loftis, who started filming street racing with a point-and-shoot camera and went on to become a pioneer in car culture media, has died, his company confirmed Wednesday. He was 43.
“We are extremely saddened to share that Kyle Loftis, the founder of 1320video, passed away last night,” the company wrote in a statement posted on social media. “We are in a state of shock.”
No cause of death has been disclosed.
The Sarpy County Sheriff’s Office and Gretna Fire Department in Nebraska responded to Loftis’ home Tuesday night, a spokesperson for the sheriff’s office said in a statement emailed to The Times.
“Loftis was declared deceased; his death is not suspicious,” the spokesperson wrote. “Out of respect for privacy, we will not be releasing further details.”
According to his LinkedIn page, Loftis attended the University of Nebraska at Omaha from 2000-2005 and earned a bachelor’s degree in management of information systems.
It was there, Loftis said in a 2023 video on his company’s YouTube channel, that his interests in car stereos and photography evolved into a passion for street racing — in particular, capturing races in still photos and on video and making that media available to fans.
“I’m a hardcore ‘car nut’ that’s taken his love for cars and turned it into the most amazing ‘job’ of my life,” Loftis wrote on LinkedIn. “Through my business, 1320Video, I’m able to experience the craziest & best automotive events (fitting my tastes) and share them with millions of people around the world!”
Back in the early days, Loftis posted his work on message boards and sold it on DVDs. For nearly 10 years after college, he worked for PayPal while building his motorsports media business on his own time. He dedicated himself to 1320Video full time starting in January 2015.
Currently, 1320Video has nearly 4 million subscribers on YouTube, more than 6 million followers on Facebook and nearly 3 million followers on Instagram.
“Kyle’s passion for motorsports inspired millions of people around the world and we will never forget what he has done to grow our beloved sport,” 1320Video wrote. “Kyle was a beam of light at every gathering… his enthusiasm, kindness, and creativeness was contagious.
“Let us pray that Kyle is in a better place.”
Garrett Mitchell — the YouTuber and stock car racer known as Cleetus McFarland — posted a tribute to his longtime friend on Facebook.
“Completely shocked about the loss of Kyle,” Mitchell wrote. “The most influential person on my life. We’re crushed. Please pray for his Mother and close friends, they need it most.”
The International Alliance of Theatrical Stage Employees is striking against “CoComelon: The Melon Patch” in protest over wages and working conditions.
The union representing crew members working on the live-action YouTube series said the workers are being overworked and that the production is understaffed.
The crew, which consists of 22 workers, recently signed cards seeking the International Alliance of Theatrical Stage Employees, or IATSE, to represent them in collective bargaining. The production’s management refused to bargain, according to the workers.
“The crew on this project experienced firsthand what working conditions can be like on a non-union production and organized for fair wages and industry-standard benefits after they started the second season,” IATSE said in a statement to The Times.
The strike began on Wednesday, halfway through the series’ shoot. The workers are currently picketing outside the Stage This studio in Sun Valley.
Moonbug Entertainment, the company behind the “CoComelon” franchise, declined to comment on the matter.
Several previous “CoComelon” productions have successfully been unionized and covered by IATSE’s contract, including the Netflix series.
Chris Roberts worked as an art director on the first season, but says he was initially offered a lower rate for season two. Though the project is non-union, he said it’s ironic to have to picket a company that makes kids’ content, as he’s unable to support his own family.
“It’s a little disheartening to be offered less money than we were paid in the first season and then have less staff, a heavier workload, and not be able to provide for my kids,” said Roberts, who has been a member of IATSE since 2016.
Warner Bros. Discovery’s impending sale has rattled Hollywood — and the company’s balance sheet as the auction’s high costs increasingly come into focus.
The New York-based media company released its first-quarter earnings Wednesday, which included a $2.9 billion loss. That amount includes $1.3 billion in restructuring expenses, including updated valuations for Warner’s declining linear cable television networks.
Contributing to the net loss was the $2.8 billion termination fee paid to Netflix in late February when the streaming giant bowed out of the bidding for Warner. The auction winner, Paramount Skydance, covered the payment to Netflix but Warner still must carry the obligation on its balance sheet in case the Paramount takeover falls apart. Should that happen, Warner would have to reimburse Paramount.
Warner also spent another $100 million to run the auction and prepare for the upcoming transaction, according to its regulatory filing.
“As we prepare for our next chapter, our focus remains on executing our key strategic priorities: scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks,” Warner Bros. Discovery leaders said Wednesday in a letter to shareholders.
Warner generated $8.9 billion in revenue, a 3% decline from the same quarter one year ago, excluding the effect of foreign exchange rate fluctuations.
Its streaming services, including HBO Max, notched milestones in the quarter and 9% revenue growth to $2.9 billion. The company launched HBO Max in Germany, Italy, Britain and Ireland during the quarter.
Advertising revenue for streaming was up 20% compared to the first quarter of 2025.
The streaming unit posted a 17% increase to $438 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Warner’s studios, primarily its TV business, had a strong quarter.
Studios revenue rose 31% to $3.1 billion, compared to the prior year quarter.
Television revenue soared 58% (excluding exchange rate fluctuations) due to increased program licensing fees to support the launch of HBO Max in international markets. Those launches also propelled the movie studio, which saw revenue increase 21%.
Video games revenue declined 30% because of lower library revenues.
Adjusted EBITDA for the studios grew $516 million (158%) to $775 million compared to the prior year quarter.
The company’s vast linear television networks saw revenue fall 9% to $4.4 billion compared to the prior year period.
TV distribution revenue tumbled 8% largely due to a 10% decrease in domestic linear pay TV subscribers.
The company also felt the loss of its NBA contract for its TNT channel, which NBC picked up. Advertising revenue fell 12%. “The absence of the NBA negatively impacted the year-over-year growth rate,” Warner said.
As the costs of the merger with Paramount come into clearer focus, the opposition has grown louder.
More than 4,000 artists and entertainment industry workers, including Bryan Cranston, Noah Wyle, Kristen Stewart and Jane Fonda, have signed an open letter warning about the dangers of the merger with Paramount. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” according to the letter.
“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”
Adjusted EBITDA for the television networks fell 10% to $1.6 billion, compared to the prior year quarter.
Warner ended the quarter with $3.3 billion in cash on hand and $33.4 billion of gross debt.
Ted Turner, the brash media mogul who created CNN and revolutionized how Americans watched television, and who wielded his media empire and wealth to pursue liberal global causes and land conservation, has died. He was 87.
In 2018, he revealed he had been diagnosed with Lewy body dementia, a neurodegenerative disease, which had been progressing in recent years.
Turner’s outsized public persona — some called him the “Mouth from the South” for his free-wheeling trash talk — matched the Georgian’s influence on news, politics, sports and entertainment in the late 20th century. Turner repeatedly shook up established industries by invading quickly and expanding options for consumers, while railing against monolithic competitors who were less daring or nimble than his maverick Turner Broadcasting System.
Turner created the cable stations TBS and Turner Classic Movies; he owned the Atlanta Braves baseball team, the Atlanta Hawks basketball team and revitalized professional wrestling with World Championship Wrestling.
Turner was one of the first adopters of cable and satellite broadcasting technology, and for many rural Americans living beyond the tower signals of major cities, he was the first person to bring them interesting TV.
The media baron constantly generated headlines. He had a Clark Gable pencil mustache, raced sailboats, cavorted with the late communist leader Fidel Castro in Cuba, and at one point married Academy Award-winning actress and activist Jane Fonda. His wealth enabled him to become one of the largest private landowners and wealthiest philanthropists in the U.S.
July 1990 image of Ted Turner with Jane Fonda.
(Tony Duffy/Getty Images)
His crowning cultural achievement was the creation of the Cable News Network in 1980, which created the model for today’s cable news titans. The 24-hour news channel was not widely expected to be a success. All-night broadcasting had not been proven as a business model in an industry dominated nationally by corporate monoliths like ABC, NBC and CBS, where news programming was something that happened on a set schedule. And CNN’s headquarters weren’t in media centers like New York or Los Angeles, but Atlanta.
But Turner believed that “over-the-air networks would decline as audiences turned to videos and other outlets for entertainment on demand,” wrote the late journalist Daniel Schorr in a 2001 memoir.
“The network future belonged to whoever would deliver what was happening now — live news and live sports. That was why he wanted to be the first to deliver all news, all sports, all the time,” wrote Schorr, whom Turner courted to join CNN.
Within two years, CNN had more than 9 million subscribers. By the 2000s, Turner’s once far-flung idea for an around-the-clock news service had become so successful that it had attracted imitators like MSNBC (now called MS NOW) and Fox News.
“We not only became profitable, but also changed the nature of news — from watching something that happened to watching it as it happened,” Turner said of CNN in 2004. “If we needed more money for [broadcasting from] Kosovo or Baghdad, we’d find it. If we had to bust the budget, we busted the budget. We put journalism first, and that’s how we built CNN into something the world wanted to watch.”
Fox Corp. Chairman Emeritus Rupert Murdoch, who was both a rival and friend of Turner, said his “vision for 24-hour cable news transformed the media industry and gave viewers everywhere a front seat to witness history unfold. His impact as a trailblazer has left an indelible mark on our cultural landscape.”
Turner recognized the value of global distribution long before his rivals, launching CNN’s international business in the mid-1980s. He bought his first western property, The Bar-None Ranch in Montana, and would eventually become one of the nation’s largest individual landowners with nearly 2 million acres, which provide habitat for threatened species and his beloved American bison.
“Ted’s entrepreneurial spirit, creative ambition and willingness to take risks changed the media industry forever,” David Zaslav, chief executive of Warner Bros. Discovery, which owns CNN, said Wednesday in a note to employees. “He believed deeply in the power of ideas, in doing things differently and in building platforms that could inform, inspire and connect people around the world.”
Robert Edward Turner III was born in Cincinnati on Nov. 19, 1938, and raised in Georgia. A mischievous child — who later became a mischievous adult despite attending the Georgia Military Academy — he had a tough childhood at the hands of his alcoholic father, Ed.
“Ninety percent of the arguments I had with Ed were over his beating Ted too hard,” Ted’s mother, Florence Turner, recalled later.
“My dad ran an old-fashioned household and he insisted that pretty much everything had to be his way,” Ted Turner said in a 2008 memoir. “My father and I had a complex relationship but I loved him.”
The younger Turner attended Brown University but dropped out before graduating. His savings had run out, his father had stopped financially supporting his tuition, and in his final days on campus, he was suspended for bringing a woman to his dorm room, according to his memoir.
He soon joined his father’s expanding billboard advertising company, Turner Advertising, where he had been working off and on for years since childhood.
He inherited the business at the age of 24 after his father died by suicide. By then, Turner had already had years of experience , and he worked furiously to reverse his father’s recent sale of part of the company to a competitor and paid down its daunting debt, an act that presaged the empire-building to come.
While growing the business, Turner also pursued his passion for competitive sailing, which is how he met his first wife, Judy Nye, in college. It’s also how their marriage ended. Turner intentionally hit his wife’s boat during a 1963 race to keep her from passing him, and the pair, who had two children, split immediately afterward.
It was to be the first of three divorces. . “My problem is I love every woman I meet,” Turner has said. He would go on to win the America’s Cup in 1977 while expanding his father’s company into a modern multimedia conglomerate.
Leveraging the billboard business, Turner started buying local radio stations across the South in the late 1960s. In 1970, he bought the Channel 17 television station in Atlanta, competing with local network affiliates by airing old movies whose rights were affordable and picking up programming dropped by the less nimble competition. He didn’t like putting news on prime time back then — too negative — and soon picked up broadcast rights for the Braves, Hawks and other local sports.
Oct. 1998 photo of former President Jimmy Carter, right, and Atlanta Braves team owner Ted Turner, during Game 6 of the National League Championship Series in Atlanta.
(PAT SULLIVAN/AP)
The Braves were a ratings hit, and when the team flailed and went up for sale, Turner’s company became its owner in 1976. The team continued to flail but Turner boosted its profile with gimmicks such as sewing “Channel 17” on the back of a pitcher’s jersey and dressing up as the team’s batboy and manager, to the league’s disdain. Turner bought the Hawks shortly after.
Facing entrenched local network affiliates, Turner expanded his independent station’s reach across the South and then the U.S. by embracing the new technologies of cable and satellite broadcasting. Channel 17 became nationally known as the “SuperStation,” with call letters WTBS, later shortened to TBS.
The quirky Atlanta station’s local broadcasts of old movies and sports games had become national broadcasts.
Still hungry for more, Turner finally turned his attention to news programming. He launched CNN in 1980 in a desperate bid to create a national 24-hour news channel before the broadcast titans ABC, NBC and CBS — and their gargantuan budgets — could beat him to it.
“The 24/7 genre started with Ted Turner,” veteran CNN journalist Christiane Amanpour said Wednesday on CNN. “He was the original, and he made us all proud, and he made us all hopeful, and he made us all strive for his vision of a better world.”
There were some lean early years. But the nascent channel fended off an attempt by ABC to create a competitor, and critics could see the value of an ever-present news channel, even if quality was a little thin at times.
“Non-viewers of CNN are missing a lot. There are so many reasons to watch,” Los Angeles Times critic Howard Rosenberg wrote in 1986, hailing the 6-year-old channel as an “institution.” “It’s not always good, but it’s always there.”
In 1986, CNN was the only broadcaster running live coverage when the Challenger shuttle liftoff ended in disaster. In 1991, the network gave Americans a live and uninterrupted look at the invasion of Iraq. American officials held news conferences knowing that Iraqi leader Saddam Hussein was watching them on CNN.
Americans had seen images of war before, but not broadcast nonstop into their homes.
“CNN seeks to be a stethoscope attached to the hypothetical heart of the war, and to present us with its hypothetical pulse,” the French theorist Jean Baudrillard wrote, critiquing the conflict as a media spectacle. Media scholars began to wonder whether a “CNN effect” was influencing government policy. Officials found that they now had to respond much more quickly to crises unfolding on live television.
Turner was not adversarial to communist countries of the era and even tried his own version of the Olympics, called the Goodwill Games, a bit of private-sector peace-craft that brought the Soviet Union and the U.S. out of their respective Olympic boycotts and back into direct competition in the 1989s. All on television, of course.
Turner also saw professional wrestling as part of his sports portfolio, at one point trying to pit his World Championship Wrestling program against competitor Vince McMahon’s wrestling empire, then called the World Wrestling Federation. Turner similarly tried to take a bite out of MTV with the Cable Music Channel, with a promise “to stay away from the excessive, violent or degrading clips to women that MTV is so fond of putting on.”
Moralism was a Turner hallmark. Turner had started his life as a conservative — Turner had met his second wife, Jane Smith, at a 1964 fundraiser for Republican presidential candidate Barry Goldwater — and turned toward more liberal-leaning causes, such as world peace, nuclear nonproliferation and fighting climate change, later in life.
At the 1990 American Humanist Assn.’s annual convention, Turner presented his “Ten Voluntary Initiatives” — his atheistic version of the Ten Commandments — which included pledges to world peace, environmentalism, nonviolence and “to have no more than two children, or no more than my nation suggests.” He would become a major private donor to the United Nations, pledging $1 billion and launching the United Nations Foundation nonprofit.
In 1991, a year marked by the collapse of the Soviet Union, the first U.S. war against Iraq and the confirmation hearings of Supreme Court Justice Clarence Thomas, Time magazine named Turner its “Man of the Year” for his “visionary” creation of CNN, which covered those events live. He also married Fonda that year (the ceremony was reported by CNN) and his Braves narrowly lost the World Series.
Time’s honorific was also a nice bit of corporate synergy. The magazine’s parent company, Time Warner, owned about 20% of Turner Broadcasting System stock.
Turner launched the Cartoon Network in 1992, which helped introduce his then-newly acquired Hanna-Barbera characters — including Fred Flintstone, Yogi Bear and Scooby-Doo — to a new generation of viewers.
Adversaries thought that Turner’s ventures could be reckless and impulsive. Far-seeing accomplishments in national broadcasting and the creation of CNN were also paired with several expensive misadventures, including a failed attempt to buy CBS.
Turner had to unwind a purchase of the MGM film studio less than a year after buying it, though he held onto one valuable asset: The studio’s film library, which became the foundation of the Turner Classic Movies channel and, later, jewels in the Burbank-based Warner Bros. studio vault.
In 1996, Turner Broadcasting merged with Time Warner to form the world’s largest media company, marking the beginning of the end of Turner’s apex in corporate media. Time Warner’s 2000 merger with budding internet giant AOL, then the largest-ever corporate merger, ended in disaster. Turner, who had not been a key player in the negotiations and had made no secret of his disdain for that deal, was fired as an executive.
“Ted Turner was one of the rare leaders who truly changed the trajectory of an industry,” Versant Media Chief Executive Mark Lazarus, a former Turner underling, said in a statement. “I saw firsthand his willingness to take risks and his belief that media could be something bigger and more impactful.”
CNN Worldwide Chairman Mark Thompson added: “He was and always will be the presiding spirit of CNN. Ted is the giant on whose shoulders we stand.”
Turner resigned from the AOL Time Warner board in 2003, and in 2007, announced he had sold his company shares. In his later days, one of his best-known ventures was his Ted’s Montana Grill restaurant chain. His philanthropy and land conservation efforts and protection of the American bison became guide posts during his retirement years.
While CNN maintains influence in the U.S. and abroad, its TV ratings have declined in recent years — a casualty of changing consumer behavior, the rise of social media, derision from President Trump — and several ownership changes.
During the past decade, CNN has had three different corporate owners. The company is poised to be sold again, this time to billionaire David Ellison’s Paramount Skydance. That proposed merger would bring CNN under the same roof as CBS News.
“I’ve often considered and joked about what I might want written on my tombstone,” Turner said in a 2008 memoir. “At one point, when I felt like I could get out of the way of the press, ‘You Can’t Interview Me Here’ was a leading candidate. … These days, I’m leaning toward, ‘I Have Nothing More to Say.’”
Turner is survived by his five children — Laura Turner Seydel (Rutherford), Robert Edward “Teddy” Turner IV (Blair), Rhett Turner, Beau Turner, Jennie Turner Garlington (Peek) — 14 grandchildren and a great granddaughter. The family plans a private and public service at a later date.
Pearce is a former Times reporter. Times Staff Writer Stephen Battaglio contributed to this report.
Walt Disney Co.’s theme parks and cruise line business is holding steady despite national concerns about discretionary consumer spending and higher gas prices.
The Burbank media and entertainment giant’s experiences division reported $9.5 billion in revenue in its fiscal second quarter, up 7% compared with the same period a year ago.
The increase was due to higher guest spending at Disney’s domestic parks and experiences, which reported a 6% bump in revenue to $6.9 billion, and more capacity on the company’s cruise line with the introduction of two new ships. The segment saw a 5% increase in operating income to $2.6 billion for the three-month period that ended March 28.
Disney’s theme parks segment was under close scrutiny given the national conversation about rising consumer costs and gas prices due to the U.S.-Iran war. Analysts had wondered whether consumers would tighten their belts and forgo vacations given the higher travel costs.
Disney did see a 1% decline in attendance at its U.S.-based parks compared with the prior year, which the company attributed to “continued softness” in international visitors, but said it was starting to move past those issues. Company executives have previously said Disney pivoted marketing and promotional efforts to attract local visitors.
Though the heightened economic uncertainty around the world could have a “potential impact” on the business, Disney Chief Executive Josh D’Amaro and Chief Financial Officer Hugh Johnston said in a shareholder letter Wednesday that the company was “encouraged by current demand.” The company expected that fiscal third-quarter domestic attendance numbers would improve, they wrote.
The company’s overall earnings were powered by its entertainment business, which posted revenue of $11.7 billion, up 10% compared with the prior year’s quarter.
That growth was driven by big gains for Disney’s streaming services — Disney+ and Hulu — which raked in nearly $5.5 billion in revenue, an increase of 13% compared with 2025, thanks to higher subscription fees from user growth and more advertising revenue. Operating income for the streaming business jumped 88% to $582 million.
Disney’s entertainment segment also had a stronger quarter at the theatrical box office, with standout performances from 20th Century Studios’ “Avatar: Fire and Ash,” the animated sequel “Zootopia 2” and Pixar’s “Hoppers.”
Overall, the company reported $25.2 billion in revenue, a 7% bump from the prior year. Income before income taxes totaled $3.4 billion, an increase of 9% compared with the same period in 2025, while operating income rose 4% to $4.6 billion. Earnings per share, excluding certain items, was $1.57, compared with $1.45 a year earlier.
Disney’s sports segment, which includes ESPN, reported revenue of $4.6 billion, a 2% increase from the same period in 2025. It brought in operating income of $652 million, a 5% slide that the company attributed to higher sports rights costs and the absence of UFC pay-per-view revenue compared with last year.
Disney also alluded to the company’s view of artificial intelligence as a “meaningful long-term opportunity,” saying it could play a role in content creation and production, monetization, workforce productivity, consumer and guest experiences and enterprise operations.
“At the same time, we are committed to implementing AI in a way that keeps human creativity at the center of everything we do and respects creators and the value of our intellectual property,” D’Amaro and Johnston said in the shareholder letter.
After noting OpenAI’s closure of the text-to-video AI tool Sora, which Disney had planned to invest in, D’Amaro and Johnston said the company will “continue to explore” commercial opportunities with OpenAI and other companies.
Federal Communications Commission Chairman Brendan Carr has shown an ability to make a lot of noise at the government agency known in recent years to be a little sleepy.
But his April 28 announcement that the Walt Disney Co.’s eight ABC TV stations will undergo an early review of their broadcast licenses is his loudest action yet taken on behalf of President Trump, who repeatedly threatened media outlets that he believes are critical of him.
Carr is calling for the review two years before any of the station licenses are up, citing the agency’s inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
The timing of Carr’s move is raising eyebrows as it comes after First Lady Melania Trump’s call for the firing of ABC late-night host Jimmy Kimmel over his April 23 comedy bit on the White House correspondents’ dinner. A tuxedo-clad Kimmel called Melania Trump “beautiful,” saying she had “the glow of an expectant widow.”
The first lady’s remarks came after a man armed with a shotgun, handgun and several knives breached security at the Washington black-tie event on April 25. The suspect, Cole Tomas Allen of Torrance, was arrested and faces three criminal charges, including attempting to assassinate the president.
Kimmel’s gag became ammunition for right-wing commentators, who claim the left is stoking political violence.
The host said the joke was about the age difference between the 79-year-old president and his wife. Kimmel denied it was a call for violence and has continued to mock the president on his show.
Carr insisted at a Washington news conference last week that his demand for a review is not related to Kimmel’s remarks.
Although many are skeptical, Carr, who was at the April 25 dinner, told The Times there would be an action related to ABC coming soon. The conversation occurred hours before the shots were fired.
The investigation into Disney’s practices began in March 2025, part of a broader effort by the Trump administration to reverse DEI initiatives across private companies, federal agencies, universities and other organizations.
After the 2020 police killing of George Floyd in Minneapolis, which spurred the Black Lives Matter movement, companies such as Disney and NBC-owned Comcast aggressively promoted their diversity efforts.
But experts believe Carr is acting on ABC at the behest of Trump, as the chairman has often expressed support on social media whenever the president criticizes one of the broadcast TV news outlets.
“It might be the case that Disney can get some early relief by saying this should be dismissed because this is really a 1st Amendment issue,” said James Speta, a professor at the Northwestern University School of Law. “We all know what’s going on here — the administration doesn’t like the speech that’s coming out of the talent on the broadcasting airwaves.”
Disney is not commenting on Carr’s DEI investigation, but it earlier defended the record of its TV stations, which are ratings leaders in most markets. “We are confident that record demonstrates our continued qualifications as licensees under the Communications Act and the First Amendment and are prepared to show that through the appropriate legal channels,” the company said.
Here’s a primer on what to know and the challenges Disney may face.
Why are TV stations licensed by the government?
Government licensing regulates the spectrum allocated to broadcast channels, largely to prevent interference between TV signals. When renewals come up, the license holder must demonstrate that the station is serving the public interest by providing local news, program diversity and educational and informational shows for children. The procedure once occurred every three years, but deregulation efforts have extended that period to the current span of eight years.
When was the last time a TV station faced a significant license renewal challenge?
The most notable recent example was Fox Corp.’s Philadelphia station WTXF, which was up for a license renewal in October 2023. Activist groups filing the challenge said Fox was unfit to own the outlet after a judge ruled earlier that year that the company’s Fox News Channel had spread falsehoods about voter fraud in the 2020 election.
Fox News, which operates on cable and satellite and is therefore not subject to FCC control, has a different management team than the parent company’s local TV stations, which mostly cover their communities and do not typically present political commentary. The FCC rejected the renewal challenge in January 2025, noting that none of the false information on Fox News was heard on the Philadelphia station. WTXF was not cited in Dominion’s lawsuit.
Are there any other examples?
Yes. Other White House administrations have threatened to pull TV station licenses in response to negative news coverage. At the height of the Watergate scandal in the 1970s, Richard Nixon’s allies unsuccessfully attempted to challenge the TV licenses of three stations then owned by the Washington Post.
Has a company ever lost its broadcast license?
RKO General, a unit of the General Tire and Rubber Co., was the last company to lose broadcast TV station licenses in 1987, including Los Angeles outlet KHJ. The case was related to corporate malfeasance and not broadcast content on the stations.
The process to revoke the RKO licenses took seven years from the moment the FCC voted in favor of the move.
But isn’t this case different?
Yes. Although the rule Carr mentioned is legitimate, the FCC has rarely if ever acted on it, according to one veteran TV executive who was not authorized to speak publicly on the matter. If Disney or any other company was found to violate the nondiscrimination rule, they would in previous eras probably be subjected to a just a fine, not the denial of a license, which would be viewed by many as government censorship.
What happens in the event that ABC licenses are not renewed?
Nothing immediately, as the licenses are in effect through 2028 to 2032, depending on the outlet. If Disney had to sell the stations, the price would probably be depressed due to pressure to unload the properties.
But public communications attorney Andrew Jay Schwartzman told The Times last month that the bar for denying a renewal is high and any effort would be tied up in court on constitutional grounds.
“The law intentionally sets out a very steep burden for the FCC to deny a license renewal; the process takes many years, during which time the licensee continues to operate normally under ‘continuing operating authority,’” Schwartzman said.
Paramount Skydance Chairman David Ellison defended his commitment to release 30 movies a year once his media company swallows Warner Bros. Discovery — a goal that some industry observers view as overly ambitious.
During a Monday call with analysts to discuss Paramount’s first-quarter earnings, the tech scion said the target was achievable because his management team would maintain current levels of production. Paramount has doubled its film release capacity to 15 films this year, matching the number of theatrical releases planned by competing Warner Bros.
“The two companies are actually making 30 films to date,” Ellison said. “We really view our pending acquisition of Warner Bros. Discovery as a powerful accelerant to our strategy.”
The company said it was on track to finalize its Warner takeover by the end of September. The $111-billion deal would transform the smaller Paramount into an industry titan with prestigious programming, including Harry Potter, “Game of Thrones,” “Euphoria,” as well as its current slate of Taylor Sheridan-produced franchises, including “Yellowstone” and “Landman.” The combined company also would own dozens of popular TV networks, including CBS, CNN, Comedy Central, Food Network and HGTV.
But the proposed merger would saddle the combined company with $79 billion in debt, stoking fears that Paramount would need to make steep cost cuts to balance such a large debt load. During the quarter, Paramount lined up banks and other institutional investors to provide bridge financing to help pull off the transaction, the company said.
“We’re pleased with the momentum and will continue to take the necessary steps to bring this deal to completion,” Ellison told analysts.
Late last month, Warner Bros. Discovery stockholders overwhelmingly voted in favor of the deal, which will pay $31 a share to Warner investors. The company now must secure regulatory approvals in the U.S. and abroad, and that process is well underway, Paramount said.
Paramount has asked the Federal Communications Commission for permission to exceed a cap on foreign ownership for U.S. media companies. Ellison’s company is expecting $24 billion from three Middle Eastern royal families, who would become part owners of the combined entity. Those total funds will represent about 49% of equity in that new company, exceeding the current foreign ownership cap of 25%.
More than 4,000 filmmakers, actors and industry workers, including Bryan Cranston, Connie Britton, Kristen Stewart, Jonathan Glazer and Jane Fonda, have signed an open letter asking California Atty. Gen. Rob Bonta and other regulators to block the deal, saying it “would reduce the number of major U.S. film studios to just four.”
Late last week, a small group of consumers sued to block Paramount Skydance’s acquisition of Warner Bros. Discovery and unwind Ellison’s Skydance Media’s takeover of Paramount, alleging that both deals reduce marketplace competition.
For the January-March quarter, Paramount’s earnings beat Wall Street’s expectations. Revenue grew 2% to $7.3 billion compared with the first quarter of 2025.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion, helped in part by growth in its streaming services unit. Paramount+ increased its revenue by 17% to nearly $2 billion, compared with the year earlier period when it generated $1.7 billion. The service added 700,000 subscribers, bringing the total to nearly 80 million.
With Warner’s HBO Max streaming platform, the combined service would boast more than 200 million subscribers.
Paramount reported first-quarter net earnings of $168 million, or 15 cents per share, compared with $152 million in 2025, which occurred before Skydance acquired the media company in August.
Executives pointed to “Scream 7,” a late February release that has topped $200 million in global ticket sales, as a success story. Studio revenue grew 11% to $1.28 billion for the quarter.
Television networks revenue declined 6% to $3.7 billion as Paramount’s cable channels continue to contend with the loss of cable cord-cutters, which reduces the company’s collections from pay-TV providers. Nonetheless, Paramount pointed to the strength of Sheridan’s “Landman,” starring Billy Bob Thornton, Ali Larter, Sam Elliott and Demi Moore, and the strength of the CBS television network, which currently has 13 of the broadcast industry’s top 20 prime-time shows, including “60 Minutes,” “Marshals,” and “Tracker.”
The company told analysts it would achieve $30 billion in revenue for the full year and $3.8 billion in adjusted EBITDA. Paramount said it would also make $2.5 billion in cost-cuts by the end of this year and reduce expenses by $3 billion in 2027.
Paramount said it ended the quarter with $1.9 billion in cash and cash equivalents. It also was carrying $15.5 billion in debt. The company had to draw $2.15 billion from its revolving credit facility to pay Netflix a $2.8-billion termination fee that Warner Bros. Discovery had agreed to pay under a previous deal to sell the company to Netflix.
Paramount released its earnings after Monday’s trading day. Its shares closed at $11.13, basically unchanged.
WEST PALM BEACH, Fla. — Spirit Airlines, an impish upstart that shook the industry with its irreverent ads and deep discount fares, announced Saturday that it has gone out of business after 34 years.
The ultra-low-cost airline that once operated hundreds of daily flights on its bright yellow planes and employed about 17,000 people said it had “started an orderly wind-down of our operations, effective immediately.”
Although Spirit had gone bankrupt twice before, the company said high oil prices, which have been rising because of the U.S.-Israeli war with Iran, made it impossible to stay aloft.
The airline said on its website that all flights have been canceled and customer service is no longer available.
“We are proud of the impact of our ultra-low-cost model on the industry over the last 34 years and had hoped to serve our guests for many years to come,” the announcement said.
U.S. Transportation Secretary Sean Duffy said Saturday that Spirit had a reserve fund set up for customers who bought directly from the airline to get refunds. People who bought from third-party vendors such as travel agents would have to seek refunds from them. He had a stark message for people flying with Spirit.
“If you have a flight scheduled with Spirit Airlines, don’t show up at the airport. There will be no one here to assist you,” Duffy said.
He said United, Delta, JetBlue and Southwest were offering $200 one-way flights for people who could confirm that they had Spirit confirmation numbers and proof of purchase for a limited time. Duffy also said other airlines would help with Spirit employees who might be stranded and would offer them a preferential application process as they look for work.
Spirit said in a statement that it was working to get more than 1,300 crew members to their home bases and that the final Spirit flight landed early Saturday at Dallas Fort Worth International Airport from Detroit Metropolitan Airport.
The company advised customers that they could expect refunds but there would be no help in booking travel on other airlines.
The Trump administration had considered a government bailout for the cash-strapped business to keep it from going under, but a deal was not reached. Of the potential bailout, Duffy said Saturday that “we oftentimes don’t have half a billion dollars laying around.”
President Trump had floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years with jet fuel prices soaring since the start of the Iran war.
‘They get you there’
Five Spirit flights were still showing as “on time” on Saturday morning on the departure board in Atlanta. A trickle of passengers who hadn’t heard the news were still showing up.
“What!?” exclaimed Taylor Nantang as she, her husband and four children arrived for a Saturday afternoon Spirit flight from Atlanta to Miami for a spur-of-the-moment vacation. The family had driven down from Tennessee to the Atlanta airport.
“So the whole airline at every airport is out of business?” asked Nantang. “Oh my, that’s crazy.”
Other passengers wondered whether the airline would still answer its customer service phone, or when the refunds for canceled flights might arrive on their credit cards.
Joshua Sigler, who had bought a ticket Friday for a flight Saturday to Miami, said he would just return home after learning of the cancellation rather than try to take advantage of deals other airlines were offering to stranded Spirit passengers. He said he had gotten no communication from Spirit, which he had flown multiple times in the past.
“They get you there,” he said of his Spirit travels. “It was cheap.”
Waking to the news
Former Spirit flight attendant Freddy Peterson was on a Spirit flight from Detroit that arrived in Newark, N.J., around 11 p.m. Friday. He said that despite rumors flying on social media Friday, things seemed kind of normal, with more than 200 passengers on the plane.
“All our aircraft were packed,” he said.
Peterson, 60, said he set his alarm clock for 3 a.m. Saturday to check the company website at the hour of the rumored shutdown and learned all Spirit flights were canceled. He said Delta Air Lines brought him and another flight attendant back to Atlanta on Saturday morning, with Peterson leaving from there to drive to his home in Shellman in southwest Georgia.
“I’ll probably do my boo-hoo crying and all that other stuff once I get in the car.”
Peterson said he had been a flight attendant with Spirit for 10 years and the company has “done wonders for me.” He said the airline’s reputation for bargain-basement chaos was largely undeserved, but he did fault management for not communicating with the employees in the closing days, saying a promised employee town hall was canceled.
Bailout fizzles
As late as Friday afternoon, Trump had said his administration was looking at a bailout for Spirit and had given the budget carrier a “final proposal” for a taxpayer-funded takeover.
Spirit proudly disrupted the penny-pinching portion of the airline industry with its no-frills, low-cost flights and provocative ads like its “Check Out the Oil on Our Beaches” campaign after the Deepwater Horizon disaster in 2010, referencing suntan oil but alluding to the massive spill of crude along the Gulf Coast.
But Spirit has struggled financially since the COVID-19 pandemic, weighed down by rising operating costs and growing debt. By the time it filed for Chapter 11 protection in November 2024, Spirit had lost more than $2.5 billion since the start of 2020.
The budget carrier sought bankruptcy protection again in August 2025, when it reported having $8.1 billion in debts and $8.6 billion in assets, according to court filings.
White House blames Biden
The White House had blamed the Biden administration for Spirit’s tenuous financial situation, noting that President Biden opposed a proposed merger between Spirit and JetBlue in 2023. On Saturday, Trump administration officials took to social media to amplify voices of conservative critics who faulted that decision.
On Saturday, Duffy concentrated blame on Biden as well as Duffy’s predecessor, Pete Buttigieg. “Many at the time said that this was a disaster. This merger should have been allowed,” he said.
Tad DeHaven, a policy analyst at the Cato Institute, a libertarian think tank, said the Trump administration also bears responsibility, arguing that the airline’s latest crisis reflected a chain reaction of policy missteps rather than a single decision. He pointed specifically to Trump’s decision to strike Iran as “bad foreign policy,” noting the conflict drove up jet fuel prices and therefore Spirit’s operating costs.
“They were already in trouble,” DeHaven said, describing the situation as “a compounding effect in terms of policy.”
Supporters of a rescue including labor unions representing Spirit’s pilots, flight attendants and ramp workers said a collapse would put thousands of Americans out of work and hurt consumers by reducing airline competition and increasing airfares. About 17,000 jobs could be impacted, according to Spirit lawyer Marshall Huebner.
Budget-conscious and leisure travelers are likely to feel Spirit’s absence the most, especially in places where the airline has a big footprint such as Las Vegas and the Florida cities of Fort Lauderdale and Orlando.
The carrier flew about 1.7 million domestic passengers in February, roughly half a million fewer than during the same month a year earlier, according to aviation analytics firm Cirium. Spirit also has sharply reduced its capacity; about half as many seats had been available this month as in May 2024.
Madhani, Yamat, Amy and Catalini write for the Associated Press and reported from West Palm Beach, Las Vegas, Atlanta and Morrisville, Pa., respectively. AP writer Josh Funk in Omaha contributed to this report.
A TOP travel company has launched a new guarantee for customers that allows them to get a refund the same day their flight is cancelled.
On The Beach has launched a new initiative for travellers this summer, where, if their flight is cancelled, they will get a refund on the same day.
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The holiday package provider is the first to offer ‘Cancelled Flight Cover’, and it is included on all On The Beach packages.
The perk will come into play if your flight is either cancelled or rescheduled by 12 hours or more, with On The Beach first trying to find you the “next best flight”.
If this is not possible or you don’t want the alternative flight, a refund will be processed on the very same day for your flight, hotel and any extras you booked.
It comes as airlines and travellers face uncertainty this summer, with possible cancellations across Europe due to fuel supply concerns.
Some airlines are already cutting flights but other providers usually take up to 14 days to refund customers.
Caspar Nelson, holiday expert at On the Beach, said: “Holidaymakers deserve certainty, especially when disruption strikes.
“We’re proud to be the first package holiday provider to commit to same-day refund processing for cancelled flights, giving customers the confidence to book knowing we’ve got their back when it matters most.
“If the worst happens and a flight is cancelled, we’ll move quickly to either find a new route or return every penny of their holiday money that same day.
“This means they can get a new break booked, make alternative plans fast, and get back to looking forward to their summer instead of worrying about it.”
Audacy’s Los Angeles news radio station KNX is ending its simulcast on 97.1 FM, which will move to a sports talk format on May 11.
The New York-based audio company announced Tuesday that the frequency will be re-branded as the Fan, becoming the first all-sports FM station in the Los Angeles market.
Sports talk listeners are currently served by KLAC, an AM station co-owned by iHeartRadio and the Dodgers, ESPN LA 710, and KLAA at 830 AM, owned by the Los Angeles Angels.
KNX will continue its all-news format on its AM frequency 1070. The station will also be heard on 97.1 HD2, mostly available in vehicles equipped with digital radios.
Chris Oliviero, chief business officer for Audacy, said the moves are aimed at providing more local content to listeners in the Los Angeles market. The Fan will be stocked with on-air talent well-versed in the area’s teams.
“We’re going to be providing twice as much original local L.A. content than we were previously,” Oliviero said. “We are taking these two broadcast frequencies, and getting more out of them.”
KNX’s news format benefited from the FM simulcast, with its share of the audience up more than 25% since it began in December 2021. Oliviero said Audacy remains committed to the format, which has a significant number of listeners through the station’s app and other streaming platforms.
Audacy has a proven track record in sports talk radio, which is attractive to advertisers. Los Angeles was the only top 10 market where the company did not have a station carrying the format.
Oliviero noted that the upcoming sports calendar that includes the 2026 World Cup and the 2028 Summer Olympics in Los Angeles will likely drive up listener appetite for the station.
The Fan will launch without any live play-by-play of Los Angeles teams. KLAC has the audio rights to the Dodgers, the Clippers of the NBA, the Chargers of the NFL and UCLA football.
Oliviero said Audacy will look at acquiring audio rights to Los Angeles teams as they become available. He noted that the Fan will carry local hosts during daytime hours when KLAC offers syndicated hosts Dan Patrick and Colin Cowherd. KLAC has a popular local team, Petros and Money, in the afternoon, and a Dodgers-focused talk show in the evening.
In addition to KNX, Audacy owns classic hits station KRTH-FM (101.1), rhythmic hits outlet KTWV-FM (94.7), adult hits station KCBS-FM (93.1) and KROQ-FM (106.7), which has an alternative rock format. The stations broadcast out of studios on the Miracle Mile.
Audacy has owned KNX since 2017, when it merged with the radio division of CBS Corp. The company was known as Entercom at the time of the transaction.
Last year, studios and Hollywood labor unions lobbied hard to ensure animated movies and shows could compete for California’s expanded film and television tax credit program.
The payoff came last week, when three animated movies were among the nearly 40 film projects that received a production incentive in the latest round of awards, the California Film Commission announced Thursday.
Walt Disney Co.-owned 20th Century Studios received $21.9 million for “The Simpsons Movie 2,” Disney Entertainment Television got $3.5 million for “Phineas and Ferb” and DreamWorks Animation was awarded $24.7 million in credit allocation for a yet-untitled animated film.
The three are the first animated feature films to receive tax credits from the state of California. (Last month, two animated shows — a spin-off of “Rick and Morty” and “Stewie,” which branches off from the “Family Guy” cartoon — also received tax credits.)
I spoke with DreamWorks Animation Chief Operating Officer Randy Lake about the award, which he called a “potential game changer” for the Glendale-based studio known for the “Shrek” and “Kung Fu Panda” franchises.
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“Unlike live-action, our projects are years long,” he said. “You’re talking about not just a job for six or nine months on set. It’s literally three or four years that these projects can take. It’s long-term employment.”
Like most of Hollywood, the animation industry has suffered from the effects of the 2023 dual writers’ and actors’ strikes, as well as the retrenchment in studio spending after the initial rush to invest in content for streaming services.
And like much of U.S. film and TV work — particularly in California — the animation business has been deeply affected by the increasingly rich tax credits offered by other countries.
Over the last 15 years, countries including Canada and Ireland have slowly built up animation hubs, aided by their local talent and lucrative production incentives specific to animation and visual effects.
DreamWorks, too, has outsourced work to partner studios, particularly in Vancouver and Montreal, as costs in the U.S. have increased and studios face pressure to rein in their production expenses while theatrical box-office revenue has become less reliable.
Just three years ago, DreamWorks cut about 70 jobs across its corporate functions, feature films, TV and technology departments. In 2024, Disney-owned computer animation studio Pixar laid off about 175 employees as it pulled back on its production of streaming series.
But with the recent tax credit allocation, DreamWorks will hire about 100 people in California for its upcoming untitled film. Those jobs would probably would have been outsourced to a third-party studio, Lake said. Keeping all of the jobs on that film in California helps improve collaboration among the teams and foster more creativity, he said. Today, DreamWorks has about 1,000 employees.
To understand why the new incentives are meaningful, consider that a DreamWorks Animation movie similar to the one that received the credit will typically have a crew of about 400 to 500 people.
That film is a big feature, though Lake declined to share details since the project hasn’t been announced.
Both the Animation Guild and studios have pointed to the incentive as a way to bring back animation jobs to the Golden State.
“Studios have been chasing animation tax credits in other states and countries for years, so it’s incredibly rewarding to see them use California’s for the very first time,” Marissa Bernstel, a trustee on the union’s executive board and member of the task force that helped lobby for the expanded production incentives, said in a statement last week. “The results feel very real, and I’m excited to see what future employment opportunities the incentive inspires.”
Lake said DreamWorks hopes to take advantage of the state incentives for all of its full-budget films.
“We’ll be applying for the next window,” he said, adding that he hoped they will be successful so “we’ll be able to have more and more of our films be fully produced in state. That’s the goal.”
Stuff We Wrote
Film shoots
Number of the week
Lionsgate’s “Michael” had a massive opening weekend with just over $217 million in global box-office revenue. In the U.S. and Canada, the Michael Jackson biopic hauled in about $97 million, far surpassing studio expectations.
The film, which stars Jackson’s nephew, Jaafar Jackson, as the late singer, chronicles the pop star’s rise from his early days in the Jackson 5 through the growth of his solo career. The movie ends in 1988 while Jackson is on tour for his hit album “Bad.”
The premiere for “Michael” marks the biggest domestic opening for any biopic, musical or otherwise. The 2015 movie “Straight Outta Compton” previously held the record for highest opening weekend total for a musical biopic, with $60 million in the U.S. and Canada, followed by the Queen biopic “Bohemian Rhapsody” in 2018, which had a $51.1-million domestic opening.
Critics’ reviews of “Michael,” however, were largely negative. Many noted the plot sidesteps the child sexual abuse allegations against Jackson and said the film presents a more one-dimensional view of the singer.
An earlier cut of the film did end in 1993 and addressed the allegations, but that ending had to be scrapped due to a clause in a legal settlement with an accuser that stipulated he could never be pictured or mentioned in a dramatization of Jackson’s life. Jackson and his estate have denied that the pop star abused children.
What I’m watching
I finally finished the Hulu series “Paradise” this last week, which kept me guessing about literally everything all the way until the end. I’m interested in seeing where this genre-morphing show goes next season.
The global pop star’s company, TAS Rights Management, filed three new trademark applications last week, per the U.S. Patent & Trademark Office. Two of the applications relate to soundbites of her voice, saying the phrases “Hey, it’s Taylor Swift” and “Hey, it’s Taylor.” The other is a well-known image of Swift, often representative of her recent Eras tour, featuring the 36-year-old onstage, holding her pink guitar and dressed in a shimmering bodysuit.
In January, the “Interstellar” actor secured eight trademarks for his likeness, including images of him smiling and the iconic recording of him saying, “Alright, alright, alright,” from the 1993 movie “Dazed and Confused.”
“My team and I want to know that when my voice or likeness is ever used, it’s because I approved and signed off on it,” the actor told the Wall Street Journal in January. “We want to create a clear perimeter around ownership with consent and attribution the norm in an AI world.”
Registering a trademark for a celebrity’s speaking voice to defend against the prospect of AI-voice generation is a novel legal approach that has not yet been tested in court. Representatives for Swift did not respond to a request for comment on the intent of the recently filed trademarks. But Josh Gerben, one of the first attorneys to report Swift’s latest legal moves, said this is one of the growing gaps in intellectual property protection that AI can exploit.
Before AI infiltrated the internet, musicians, like Swift, would typically rely on copyright law to help prevent the unauthorized use and distribution of their music, while right to publicity laws would protect them from unlawful commercial use of their likeness. But with AI, users can manipulate people’s voices and images to sing or say practically anything.
So if McConaughey has a trademark on his voice saying a phrase, then theoretically any AI-generated voice that sounds similar to it could be considered a violation of that trademark, according to Gerben.
“If they have this trademark protection in place, then the [AI] platforms can’t use that same voice to create new content,” Gerben said. “Every celebrity would essentially have to go and do the same thing, but it’s trying to cut this off at the source as much as possible.”
Variety first reported news of Swift’s trademark filing.
As one of the most popular musicians, Swift has dealt with her share of unauthorized AI-generated content. She was previously one of the many female celebrities whose likeness was among several of Meta’s AI chatbot virtual celebrities. The illicit chatbots allegedly produced pornographic images. Before the 2024 presidential election, Donald Trump also shared AI-generated images of Swift falsely suggesting that she had endorsed him, including one of her dressed as Uncle Sam with the words, “Taylor wants you to vote for Donald Trump.”
Because Swift is such a recognizable public figure, Luke Arrigoni, the chief executive of Loti AI, a tech company that focuses on likeness protection, said trademark filings like these aren’t merely defensive but rather a setup for a long-term protective infrastructure.
“By locking down these trademarks now, she’s ensuring that if a brand wants to use a ‘Swift-like’ AI voice in 2027, they’ll have to go through her authorized gates or face federal trademark infringement,” Arrigoni said in a statement. “She’s essentially putting a price tag on her digital self, and that’s exactly where the entire talent industry needs to go to survive.”
A LUXURY UK holiday company offering trips to Europe and Asia has closed down.
Salamander Voyages – which is based in Belfast – has gone into administration.
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The company used to sell private boat holidays in Turkey, Greece, Italy and Croatia.
According to The Gazette, administrators were appointed on April 22.
On its website, Salamader Voyages states: “After 23 years of wonderful sailing in the Aegean Sea, we are very sad to announce Salamander Voyages has taken the difficult decision to close its doors.
“Please note that on 22 April 2026 Scott Murray and Ian Davison of Keenan Corporate Finance Ltd were appointed as Joint Administrators of the Company.
“For any creditor queries, please contact the Joint Administrators’ office by telephone (028 9023 3023) or email (info@keenancf.com).”
The luxury holidays didn’t come cheap though, with sailings costing from £3,000 per person.
Upcoming trips included a sailing of the Turkish Gulf between June 15 and 22, heading to “small villages, pristine secluded bays and less-known historical sites”.
And between October 5 and 17 there was another Turkish sailing in the western half of the Gulf.
Claudia Winkleman has even previously been a guest onboard, commenting: “The holiday was absolutely amazing. The boat is beautiful and the crew were outstanding.
“The most relaxing week of our lives. We love you Salamander.”
After last year’s disastrous Eaton fire, Southern California Edison executives vowed to be transparent about what caused the inferno that killed at least 19 people and left thousands of families homeless in Altadena.
“As we better understand exactly what happened on Jan. 7, we do so with a commitment to remain transparent,” Pedro Pizarro, chief executive of Edison International, the utility’s parent company, said in a published statement after the fire.
In court, however, Edison is keeping crucial documents of the cause of the Eaton fire secret, a legal strategy it has used to shield what happened in at least seven earlier wildfires it was blamed for igniting, according to a Times review.
Edison’s stance has caused mounting frustration with attorneys representing fire victims who are seeking compensation for their losses.
“The Eaton Fire cases should be decided on their merits, not on what information that SCE has been able to withhold,” lawyers for the victims wrote in a recent court filing.
State regulators have repeatedly criticized Edison for its secrecy in previous fires, saying it violated safety regulations and stopped officials from learning the root cause so that similar disasters could be prevented.
For more than a year, Edison employees have been gathering detailed information about what ignited the fire in an investigation the company is required to perform under state utility regulations.
But most of that information is being withheld by Edison’s claim of attorney-client privilege, as well as a protective order that it asked a judge to approve soon after the fire.
Protective orders are commonly used in civil lawsuits, but most cases do not have the broad ramifications to the public as the Eaton fire.
Pedro Pizarro, chief executive of Edison International, at the Semafor World Economy Summit in Washington on April 14.
(Aaron Schwartz / Bloomberg)
Because of the secrecy, it’s not possible to know just what Edison has found, attorneys for Eaton fire victims said in a filing.
In past fires, regulators have requested from the company — and been denied — photographs, notes, text messages and other records generated by the Edison crew that was first to arrive at the site where the blaze ignited. The company has argued its attorney directed the crew, making the evidence privileged.
The victims’ lawyers say Edison shouldn’t be able to withhold from them most evidence from its investigation into the blaze by claiming that the findings and related documents are covered by attorney-client privilege and therefore confidential.
Sealed Eaton fire documents
Lawyers for victims say that documents sealed by a protective order show evidence of where Southern California Edison’s safety measures fell short before the deadly fire.
Poor inspection and repair of the idle transmission line suspected of igniting the fire
Tower holding the idle line was “virtually unattended for decades”
Dried vegetation removed under electrified wires but not beneath the idle line
Problems with contractors inspecting the line
In a recent interview with The Times, Pizarro disagreed that the company was keeping information on the cause of the Eaton fire secret.
“We believe we’ve been transparent,” Pizarro said. “Facts are not privileged, and so we provided facts as we have known them.”
He said the company’s investigation was continuing. “We still, to this day, don’t fully understand what happened,” he said.
Pizarro said the protective order was needed to keep many things confidential, including some not related to the fire’s cause. For example, he said, it protects maps of the electrical system, which can’t be revealed because of terrorism concerns.
Signs blaming Southern California Edison for the Eaton fire are seen near cleared lots in the Altadena area of Los Angeles County on Jan. 5.
(Josh Edelson / AFP via Getty Images)
He pointed to several company disclosures, including two letters it sent to regulators soon after the Eaton fire that said it was evaluating whether a century-old transmission line, which hadn’t carried power since 1971, “could have become energized” and helped lead to the fire.
Pizarro said last year that the possible reenergization of that old line is a leading theory of the fire’s cause.
The company has said little else about the fire’s cause, other than it safely maintained and inspected the idle line, just like it did its energized lines.
Edison faces thousands of lawsuits from victims of the fire, which burned 14,021 acres and leveled a wide swath of Altadena. The lawsuits allege, in part, that the company was negligent for failing to safely maintain its transmission lines and for leaving the idle line in place when it knew it could become energized. Edison denies the claims of the lawsuits, which have been consolidated in L.A. County Superior Court.
Some documents that Edison says are not privileged and agreed to provide to the victims’ lawyers are sealed by a protective order that the company and the plaintiffs’ lawyers requested.
Plaintiffs’ attorneys often agree to such protective orders on the theory that doing so would allow the utility to more freely share information that could help their case.
Power lines hang from towers carrying power from the Southern California Edison Gould Station.
(Carlin Stiehl / For The Times)
Two months after the fire, Los Angeles County Superior Court Judge Laura Seigle signed the protective order — which covers documents that both sides provide in discovery — including business information deemed proprietary and personal customer data.
According to the protective order, if the case is settled, the lawyers will decide whether the sealed documents should be returned to Edison or destroyed.
If the case proceeds to trial, some of the evidence could become public.
Yet even with the protective order in place, plantiffs’ attorneys say Edison has refused to provide them with evidence from its investigation into the fire, saying it’s protected by attorney-client privilege.
The state-required investigations “are not private inquiries undertaken for SCE’s benefit and legal protection,” the plaintiffs’ lawyers wrote in a filing last year. “Those investigations are regulated activities that exist to protect the public and enhance public safety by preventing future fires.”
To begin those investigations, Edison’s crews often get to the ignition site before government officials. In the 2019 Saddleridge fire in Sylmar, an investigator from the Los Angeles Fire Department found the yellow police tape at the road leading to where the blaze started on the ground and an Edison truck leaving the site, according to his report.
California utility regulators have said the earliest observations at the scene are critical in determining what happened.
L.A. Fire Justice attorney Mikal Watts presents findings on the cause of the Eaton fire at transmission tower 3 at a January 2025 news conference in Pasadena.
(Robert Gauthier / Los Angeles Times)
Loretta Lynch, former president of the California Public Utilities Commission, which regulates the electric companies, said she believed Edison was wrongly using attorney-client privilege and protective orders “as a sword to prevent justice.”
Lynch said the confidentiality could keep evidence of Edison’s possible negligence from being used at a future state hearing that will look at whether the company acted safely and prudently before the Eaton fire.
In that hearing, if the commission finds the company acted prudently, all damage costs will be covered by a state wildfire fund and Edison customers. The company and its shareholders would pay nothing.
“It’s time to stop this game of allowing utilities to be negligent and then walk away with their customers paying for it,” Lynch said.
Kathleen Dunleavy, an Edison spokeswoman, said the company’s “assertions of privilege in civil court have nothing to do” with the future state hearing on whether the company acted prudently.
Dunleavy added that the company has been cooperating with government fire investigators and the plaintiff lawyers, responding to their requests for data.
The government’s investigation into the cause of the fire has not yet been released.
Asked about the company’s withholding of documents in court, Pizarro pointed to a 2024 California Appeals Court decision that found that Edison’s assertion of attorney-client privilege to keep evidence sealed in litigation over the 2017 Creek fire was appropriate under the law. The court said that protecting the documents generated in the internal investigation from public disclosure allowed the company’s attorneys “to investigate not only the favorable but the unfavorable aspects” of their client’s situation.
Lawyers for victims of the Creek fire, which destroyed more than 100 homes and structures near Sylmar, say Edison failed to provide evidence that showed its line was a likely cause of the blaze, leading government investigators to initially wrongly blame electrical equipment owned by the L.A. Department of Water and Power. Edison continues to deny it caused the fire.
A fire truck makes its way past a portion of the Creek fire along Wheatland Avenue in Sylmar on Dec. 5, 2017.
(Genaro Molina / Los Angeles Times)
In the Eaton fire case, a few details of what’s in the confidential documents have been revealed in court, showing they could be significant when the first trial begins next year.
In February, plaintiff lawyers filed 13 sealed exhibits for only the judge to review, saying they showed how Edison had neglected inspections, maintenance and repair of the idle line. The records are subject to the protective order, shielding them from public view.
“There is ample evidence in this case that SCE performed more frequent and higher quality inspections and maintenance on its live equipment than it did on its inactive facilities,” they wrote.
“From all indications, SCE left Tower 208 virtually unattended for decades,” they added, referring to the pylon that held the idle line and was found to be the location of the fire’s first flames.
The plaintiff lawyers also said the protective order prevents them from disclosing photos to the public that show Edison left vegetation growing under the idle line while removing it from beneath the live wires running parallel to it, according to the court filing. Utility regulations require vegetation to be removed from under and around electric lines to reduce the risk of fire.
The lawyers added that the sealed documents showed that Edison was having problems with an outside contractor it had hired to inspect its transmission lines.
Asked about the filing, Pizarro said the claims were assertions by the plaintiff attorneys that would be debated in court.
Some legal experts have criticized the use of protective orders for keeping the public in the dark about dangerous corporate actions or products.
Lynch said protective orders and confidential settlements in wildfire litigation are preventing the public from learning information that could stop future deadly fires. She said California should consider legislation to ban the use of the secrecy tactics in wildfire lawsuits.
Firefighters work to contain the Saddleridge fire on Oct. 10, 2019, in the Sylmar neighborhood of Los Angeles.
(Patrick T. Fallon / For The Times)
The Times found protective orders in lawsuits against Edison for the 2017 Thomas fire and mudslides, which killed 23; the 2018 Woolsey fire, which killed three; the 2019 Saddleridge fire, which killed one; and the 2022 Fairview fire, which killed two. Those fires together caused billions of dollars in damages and destroyed thousands of homes.
Lawyers for the Eaton fire victims told the judge in February that the protective order, as well as similar secrecy orders in lawsuits over other fires, had kept them from speaking publicly about certain subjects in the courtroom, including what they knew about Edison’s line inspections.
“This is a significant case, against one of the world’s largest providers of electricity, which has, through the use of Confidentiality Protective Orders in other cases, impaired the Plaintiffs’ ability to fully inform the Court,” they wrote.
Late last month, Judge Seigle ordered Edison to give the victims’ lawyers more of the documents they had requested. The protective order limits the public’s access to them.
Kobe Bryant rookie trading cards aren’t particularly rare. And because rarity equates to value, standard issue 1997 cards featuring the late Lakers great retail for a pedestrian $100 to $300.
Then there are 1997 Kobe Bryant Metal Universe Precious Metal Gems Green cards, which just by typing that highfalutin name can give even the most savvy collector goose bumps.
The key word is green. Most Bryant rookie Metal Universe Precious Metal Gems cards have a red background and fetch around $300,000. Only 10 were made with a metallic green background and only three have been graded by respected grading firm Professional Sports Authenticator (PSA).
So green translates to greenbacks. Alt, a company that enables users to sell, buy and securely store collectible cards, announced Thursday it purchased one of those — take a breath first — 1997 Kobe Bryant Metal Universe Precious Metal Gems Green cards in a private transaction for $3.15 million.
The company said on Instagram that the purchase makes it the most expensive Bryant card ever sold, eclipsing the previous record of $2.4 million set in September. Another copy of the same card sold for $2 million in 2022.
“It was on every collector’s wall, in every price guide, at the top of every wish list,” Alt CEO Leore Avidar Avidar said on Alt’s Instagram page. “Acquiring it for our fund is personal, but it’s also a reflection of where this market has gone.”
The image of Bryant in midair passing — not shooting! — highlights the card, which earned a PSA 5 grade.
The card adds to Alt’s impressive collection. The fund set price records at time of purchase for LeBron James, Stephen Curry and Giannis Antetokounmpo cards in addition to the one of Bryant.
The most paid for a sports trading card was $12.932 million for a 2007-08 Upper Deck Exquisite Collection Dual Logoman Autographs signed card featuring Bryant and Michael Jordan last fall. The purchase was made by investor and “Shark Tank” personality Kevin O’Leary along with veteran collectors Matt Allen and Paul Warshaw and surpassed the previous record of $12.6 million held by a 1952 Topps Mickey Mantle card.
The Bryant/Jordan card is the second-most expensive sports collectible of all time behind Babe Ruth’s 1932 World Series “called shot” jersey, which sold for $24.12 million in 2024.
High-end Bryant cards remain coveted by collectors. Allen, well known in the industry as Shyne150, privately spent $4 million on two Bryant 1-of-1 signed Panini Flawless Logoman cards.
A former executive at Live Nation, the world’s largest live entertainment company, is suing the company, alleging that he was wrongfully terminated after he raised concerns about alleged financial misconduct and improper accounting practices.
Nicholas Rumanes alleges he was “fraudulently induced” in 2022 to leave a lucrative position as head of strategic development at a real estate investment trust to create a new role as executive vice president of development and business practice at Beverly Hills-based Live Nation.
In his new position, Rumanes said, he raised “serious and legitimate alarm” over the the company’s business practices.
As a result, he says, he was “unlawfully terminated,” according to the lawsuit filed Thursday in Los Angeles County Superior Court.
“Rumanes was, simply put, promised one job and forced to accept another. And then he was cut loose for insisting on doing that lesser job with integrity and honesty,” according to the lawsuit.
He is seeking $35 million in damages.
Representatives for Live Nation were not immediately available for comment.
Rumanes’ lawsuit describes a “culture of deception” at Live Nation, saying its “basic business model was to misstate and exaggerate financial figures in efforts to solicit and secure business.”
Such practices “spanned a wide spectrum of projects in what appeared to be a company-wide pattern of financial misrepresentation and misleading disclosures,” the lawsuit states.
Rumanes says he received materials and documents that showed that the company inflated projected revenues across multiple venue development projects.
Additionally, Rumanes contends that the company violated a federal law that requires independent financial auditing and transparency and instead ran Live Nation “through a centralized, opaque structure” that enables it to “bypass oversight and internal checks and balances.”
In 2010, as a condition of the Live Nation-Ticketmaster merger, the newly formed company agreed to a consent decree with the government that prohibited the firm from threatening venues to use Ticketmaster. In 2019 the Justice Department found that the company had repeatedly breached the agreement, and it extended the decree.
Rumanes contends that he brought his concerns to the attention of the company’s management, but his warnings were “repeatedly ignored.”
California’s trial attorneys and Uber — longtime courtroom foes — are officially bringing their fight to the November ballot.
A coalition of lawyers and advocates announced Thursday that it has gathered enough signatures to ask voters to support a “first in the nation” law that would make rideshare companies legally responsible for sexual assaults that happen to a driver or customer during a trip. Uber has argued it’s not liable for assaults committed by drivers, who are considered independent contractors.
“We must hold Uber accountable today,” said Danielle Tudahl, who recounted being sexually harassed and chased by an Uber driver after ordering a ride through the app, at a Sacramento news conference. “Californians are finally demanding action to try and close some of these gaps and put people’s safety over corporate profits.”
Uber has described the ballot measure, which is sponsored by the Consumer Attorneys of California, or CAOC, as retaliation for its own November ballot push to cap how much attorneys can earn in car crash cases in California.
“This ballot measure is a cynical ploy by billboard lawyers,” said Nathan Click, a spokesperson for A More Affordable California, an Uber-backed coalition. “CAOC didn’t spend millions to put this on the ballot to protect survivors — their goal is protecting billboard lawyer profits.”
The coalition that supports Uber announced last week it had gathered enough signatures for a measure that would cap attorney fees for car crash cases at 25%, among other changes.
Uber says its ballot measure will give victims a larger cut of their settlement money, rather than the payout getting siphoned off primarily to attorneys and doctors. Attorneys fire back that it will leave thousands of people with small or thorny cases without a lawyer because they won’t have financial incentive to sue.
Both sides are gearing up for an expensive fight. Uber has given more than $77 million. The Alliance Against Corporate Abuse, the CAOC-backed coalition pushing the sexual assault measure, has raised more than $68 million from law firms across the state, according to campaign finance records.
The money has helped pay for billboards that have sprouted across L.A. informing drivers that, according to the New York Times, Uber received a report of sexual assault or misconduct every eight minutes on average between 2017 and 2022. The company was the subject of a series of investigations by the paper into sexual assault by drivers. The company says it has invested billions in keeping riders safe and has “done more than any other company to confront” sexual violence.
The proposed sexual assault measure would require ride-share companies to let riders know if the person picking them up has a history of sexual misconduct and conduct yearly fingerprint and background checks for drivers.
The company is currently fighting more than 3,000 lawsuits from passengers who claim they were sexually assaulted or harassed by Uber drivers. Those cases are being coordinated by a federal judge in California.
The attorney coalition had also pushed an initiative aimed at nullifying Uber’s fee-capping measure if it passed. Alex Stack, a spokesperson for the campaign, said they were “pausing/withdrawing” the measure to “focus the fight on our sexual assault prevention measure and beating Uber’s initiative.”
As many as a dozen letters — including one from the NBA — were submitted by the attorney for Aspiration Partners co-founder Joe Sanberg ahead of his sentencing Monday in an effort to persuade the judge to trim the 17 years prosecutors have requested for each of the two counts of fraud.
Sanberg pleaded guilty in October to the federal charges of conspiring to bilk investors out of $248 million for portraying the now-defunct Aspiration as a “socially-conscious and sustainable banking services and investment products” firm.
Another letter was also submitted, however, and it wasn’t intended to assist Sanberg.
Clippers owner Steve Ballmer’s attorney David N. Kelley of O’Melveny and Myers wrote that Ballmer was defrauded of a $60-million investment in Aspiration and that the harm to his reputation is “immeasurable.”
The five-page Victim Impact Statement concludes: “Mr. Ballmer’s losses are not measured solely, or even primarily, on a balance sheet. They are measured in the reputational damage that will take years to remediate, and in the chilling effect on future endeavors intended to do good at scale.
“We ask the court to impose a sentence that accounts for those harms, promotes respect for the law, and deters those who would seek to appropriate the reputations of others to advance fraudulent aims.”
The letter states that the Clippers lost out on a $300 million sponsorship agreement with Sanberg in exchange for the team to wear Aspiration jerseys patches. Also lost was about $20 million the Clippers paid for carbon offset purchases and the $60 million Ballmer invested in the company.
Ballmer, a former long-time CEO of Microsoft, accused Sanberg of targeting him for his well-known interest in environmental sustainability and exaggerating their relationship to convince others to invest in the fraudulent company. In the letter, Ballmer says he met Sanberg only once.
Ballmer was added in November as a defendant in an existing civil lawsuit against Sanberg and several others associated with Aspiration. Ballmer and the other defendants are accused by 11 investors in Aspiration of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.
The letter dismisses the allegations in the lawsuit as “nonsense,” stating Ballmer was added as a defendant because of his “visibility and resources,” and reiterates that Ballmer himself is a victim of fraud. The action has damaged his reputation, the letter states, “and has further linked Mr. Ballmer to Sanberg’s fraud in the eyes of the public.”
The letter to the court, however, makes no mention of the $28-million contract Clippers star Kawhi Leonard signed with Aspiration for endorsement and marketing work. Players are allowed to have separate endorsement and other business deals, but at issue is whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard.
Leonard has addressed the accusations only once, denying wrongdoing and saying, “I understand the full contract and services that I had to do. Like I said, I don’t deal with conspiracies or the click-bait analysts or journalism that’s going on.”
The arrangement could be considered circumventing the NBA salary cap, a serious violation of league rules. Ballmer steadfastly denies arranging the deal between Aspiration and Leonard, who by all accounts performed no duties for Aspiration.
The NBA is investigating the complicated relationships between Ballmer, Leonard and Aspiration. One of the letters submitted by Sanberg’s attorney to the judge is from the law firm conducting the probe, and it states that the disgraced executive provided documentation and information helpful to the NBA investigation during two in-person interviews.
“In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence,” wrote Dave Anders of Wachtell Lipton. “Mr. Sanberg’s cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events.”
Eventually the ledger will include the results of the NBA investigation into the allegations against Ballmer and Leonard. And that finding might impact the reputation of both more than Sanberg’s fraudulent dealings.
Paramount Skydance’s proposed takeover of Warner Bros. Discovery cleared a major hurdle Thursday as Warner stockholders overwhelmingly embraced the $111-billion deal.
Approval was expected. Paramount Chairman David Ellison’s proposal would pay Warner investors $31 a share — four times the price of the company’s stock a year ago. Warner Bros. officials did not disclose the precise vote count during the nine-minute special shareholder meeting beyond saying the merger “received sufficient votes and has overwhelmingly passed.”
Paramount offered the generous premium to compete with, and ultimately triumph over, Netflix, which withdrew from the auction in late February after Ellison’s father, Oracle billionaire Larry Ellison, agreed to guarantee the financing of his son’s deal.
The merger would create a new Hollywood behemoth by giving Paramount, which owns CBS and the Melrose Avenue film studio, such valuable assets as HBO, HBO Max, CNN, TBS, Food Network and Warner Bros.’ film and television studios in Burbank. Warner controls beloved TV shows, franchises and movies, including “Casablanca,” Harry Potter, D.C. Comics, “Game of Thrones,” “Euphoria,” “The Pitt,” and “Rooster.”
“Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery, building on our successful equity and debt syndications and progress across regulatory approvals,” Paramount said Thursday in a statement. “We look forward to closing the transaction in the coming months and realizing the creation of a next-generation media and entertainment company that better serves both the creative community and consumers.”
Paramount now must secure regulatory approvals in the U.S. and abroad. Ellison, who is poised to honor President Trump with a dinner Thursday evening in Washington, hopes to complete the deal by late summer.
Shareholders, however, made known their disdain for Warner Chief Executive David Zaslav’s proposed golden parachute, which could swell to $887 million, depending on when the transaction closes. His cash, stock and options would be valued at more than $550 million. Warner board members also agreed to pay his tax bill, which could approach $330 million, should the merger be completed by year’s end.
Shareholders, in a non-binding vote, voted against Zaslav’s package.
Paramount’s deal has encountered significant opposition in Hollywood and beyond.
More than 4,000 filmmakers, actors and industry workers, including Ben Stiller, Bryan Cranston, Ted Danson, J.J. Abrams and Kristen Stewart have signed an open letter asking California Atty. Gen. Rob Bonta and other regulators to block the deal.
Opponents fear the consolidation would be lead to massive layoffs and diminish the quality of programming that Warner Bros., CNN and HBO are known for. Hollywood has sustained thousands of layoffs over the last six years; the film production economy hasn’t recovered from shutdowns during the 2023 labor strikes.
“This is already an incredibly consolidated industry where writers have seen merger after merger leave fewer and fewer companies in control of what our members can get paid to write,” Michele Mulroney, president of the Writers Guild of America West, said Wednesday during a press briefing organized by Free Press and other progressive groups that oppose the merger.
“A combined Warner Bros. and Paramount would create a media behemoth with tremendous leverage to reduce content, to raise prices, to increase control of production, to suppress member compensation, worsen working conditions and silence the voices of our members,” Mulroney said.
Trump has long agitated for changes at CNN, and few expect his Justice Department to block the transaction. Defense Department Secretary Pete Hegseth echoed the sentiment. “The sooner David Ellison takes over that network the better,” Hegseth told reporters in March.
It’s unclear whether Bonta or other state attorney generals will file a lawsuit to try to stop the deal. Bonta previously told The Times that his office is reviewing the consolidation.
“This deal can get blocked. I personally think it will get blocked — or undone,” Alvaro Bedoya, former Federal Trade Commission member who now serves as a senior adviser to the American Economic Liberties Project, told reporters Wednesday. He pointed to other proposed mergers that unraveled due to fierce opposition, including the proposed combinations of grocery giants Kroger and Albertson’s.
David Ellison has promised to keep HBO entact and the Paramount and Warner Bros. movie studios humming. He promised cinema owners last week that a combined Paramount-Warner Bros. would release 30 movies into theaters each year.
“This transaction uniquely brings together complementary strengths to create a company that can greenlight more projects, back bold ideas, support talent across multiple stages of their careers,” Paramount said in a statement to push back on the opposition. The company would have the power to “bring stories to audiences at a truly global scale — while strengthening competition by ensuring multiple scaled players are investing in creative talent.”
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.
Paramount has enlisted a former Trump administration official, lawyer Makan Delrahim, who served as Trump’s antitrust chief during the president’s first term.
In a confident move, Delrahim filed to win the Justice Department’s blessing in December — even though Paramount didn’t have an agreement with Warner Bros. Discovery’s board at the time. In February, a key deadline for the Justice Department to raise issues with Paramount’s proposed Warner takeover passed without comment from the Trump regulators.
Eaton wildfire survivors’ anger about Southern California Edison’s burying of electric wires in Altadena boiled over Tuesday with residents calling on government officials to temporarily halt the work.
In a letter to the Los Angeles County Board of Supervisors, more than 120 Altadena residents and the town’s council wrote that they had witnessed “manifest failures” by Edison in recent months as it has been tearing up streets and digging trenches to bury the wires.
The residents cited the unexpected financial cost of the work to homeowners and possible harm to the town’s remaining trees. They also pointed out how the work will leave telecommunication wires above ground on poles.
“The current lack of coordination is compounding the stress of a community still reeling from the Eaton Fire, and risks causing further irreparable harm,” the residents wrote.
The council voted unanimously Tuesday night to send the letter.
Scott Johnson, an Edison spokesman, said Wednesday that the company has been working to address the concerns, including by looking for other sources of funds to help pay for the homeowners’ costs.
“We recognize this community has already faced a number of challenges,” he said.
Johnson said the company will allow homeowners to keep existing overhead lines connecting their homes to the grid if they are worried about the cost.
Edison’s crews, Johnson said, have also been trained to use equipment that avoids roots and preserves the health of trees.
The utility has said that burying the wires as the town rebuilds thousands of homes destroyed in the fire will make the electrical grid safer and more reliable.
But anger has grown as work crews have shown up unexpectedly and residents learned they’re on the hook to pay tens of thousands of dollars to connect their homes to the buried lines.
Residents have also found the crews digging under the town’s oak and pine trees that survived last year’s fire. Arborists say the trenches could destroy the roots of some of the last remaining trees and kill them.
Amy Bodek, the county’s regional planning director, recently warned Edison that a government ordinance protects oak trees and that “utility trenching is not exempt from these requirements.”
Residents have also pointed out that in much of Altadena, the telecom companies, including Spectrum and AT&T, have not agreed to bury their wires in Edison’s trenches. That means the telecom wires will remain on poles above ground, which residents say is visually unappealing.
“While our community supports the long-term benefits of moving utilities underground, the current execution by SCE is placing undue financial and planning burdens on homeowners, causing irreparable harm to our heritage tree canopy, and proceeding without adequate local oversight,” the residents wrote.
They want the project halted until the problems are addressed.
Edison announced last year that it would spend as much as $925 million to underground and rebuild its grid in Altadena and Malibu, where the Palisades fire caused devastation.
The work — which costs an estimated $4 million per mile — will earn the utility millions of dollars in profits as its electric customers pay for it over the next decades.
Pedro Pizarro, chief executive of Edison International, told Gov. Gavin Newsom last year that state utility rules would require Altadena and Malibu homeowners to pay to underground the electric wire from their property line to the panel on their house. Pizarro estimated it would cost $8,000 to $10,000 for each home.
But some residents, who need to dig long trenches, say it will cost them much more.
“We are rebuilding and with the insurance shortfall, our finances are stretched already,” Marilyn Chong, an Altadena resident, wrote in a comment attached to the letter. “Incurring the additional burden of financing SCE’s infrastructure is not something we can or should have to do.”
Other fire survivors complained of Edison’s lack of planning and coordination with residents.
“I’ve started rebuilding, and apparently there won’t be underground power lines for me to connect with in time when my house will be done,” wrote Gail Murphy. “So apparently I’m supposed to be using a generator, and for how long!?”
Johnson said the company has set up a phone line for people with concerns or questions. That line — 1-800-250-7339 — is answered Monday through Saturday, he said.
Residents can also go to Edison’s office in Altadena at 2680 Fair Oaks Avenue. The office is open Monday to Friday from 8 to 4:30.
It’s unclear if the Eaton fire would have been less disastrous if Altadena’s neighborhood power lines had been buried.
The blaze ignited under Edison’s towering transmission lines that run through Eaton Canyon. Those lines carry bulk power through the company’s territory. In Altadena, Edison is burying the smaller distribution lines, which carry power to homes.
The government investigation into the cause of the fire has not yet been released. Pizarro has said that a leading theory is that a century-old transmission line, which had not carried power for 50 years, somehow re-energized to spark the blaze.
The fire killed at least 19 people and destroyed more than 9,400 homes and other structures.
