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Clippers star Kawhi Leonard had a second lucrative undisclosed sponsorship agreement with a company doing business with the team, Pablo Torre reported Thursday night on his podcast.

Scoreboard manufacturer Daktronics, which built the $100 million video board at the Clippers’ Intuit Dome, hired Leonard to a multi-million dollar endorsement deal, according to Torre. The podcast host found no evidence that the All-NBA forward did any work for the company.

The details are similar to the $28 million endorsement deal Leonard had with Aspiration, a now-defunct environmental banking company that had a 23-year, $300 million sponsorship deal with Clippers. Steve Ballmer, the team’s owner, invested $60 million into Aspiration, triggering allegations that the payment to Leonard circumvented the NBA salary cap.

That deal is at the center off an ongoing, almost year-long NBA investigation. Requests on Friday for comment from Leonard’s agent and the Clippers were not immediately answered.

The salary cap limits what teams can spend on player payroll to ensure parity and prevent the wealthiest teams from outspending smaller-market teams to acquire the best players. NBA Commissioner Adam Silver has called attempts to circumvent it a “cardinal sin.”

The topic was raised on Torre’s podcast by a person identified as an “anonymous high-level source under contract for Intuit Dome.” The person alleged in an interview that the sponsorship deal was “1,000% a way to circumvent the salary cap. It was funneling money from the Clippers through Daktronics back to Kawhi.”

The investigation into the Aspiration allegations has grown in scope, the Athletic reported three weeks ago. In addition to attempting to determine whether Aspiration’s payment to Leonard violated NBA salary-cap rules, the probe conducted by high-powered New York law firm Wachtell Lipton Rosen & Katz is examining Leonard’s deal with Daktronics.

If the NBA determines that a salary-cap violation occurred, the Clippers could be fined and stripped of first-round picks. Ballmer also could be penalized and Leonard’s contract could be voided. He has one year and $50.3 million left on a three-year, $149.5 million deal he signed before the 2024-25 season.

The endorsement deal with Daktronics raised suspicion because the company doesn’t do business with the general public and doesn’t need prominent athletes or celebrities to pitch its products.

“Daktronics was conservative to a fault for the 20+ years I was there,” a former employee told Torre. “I remember asking early on why we didn’t do more traditional advertising and promotion to increase brand recognition. I was told that since it’s B2B and not a consumer product, it didn’t make sense to advertise that way.”

Asked whether Leonard had an endorsement deal, Daktronics pointed Torre to a crisis management firm whose spokesman said, “My understanding is Daktronics doesn’t have a deal with Kawhi right now.” Asked for clarification, the spokesman said, “I don’t know what the company wants to say, or can say, given the Wachtell investigation and all that.”

Daktronics is a leader in designing, engineering and manufacturing digital LED display technology and audio systems. Nearly 600 clients are listed on the company website, including numerous NBA, MLB, NFL and NHL teams. Other clients include several airports, and Daktronics built the LAX Time Tower, a 72-foot, four-sided interactive digital media structure located in the Tom Bradley International Terminal.

The Clippers traded Leonard to the Toronto Raptors on June 30 for Brandon Ingram, Gradey Dick and a slew of draft picks, but the teams put deal was put on hold pending the outcome of the investigation.

Leonard would not talk about the allegations during the 2025-26 NBA season because the investigation was ongoing. He brushed it off during media day in September.

“None of us did … wrongdoing and, yeah, that’s it,” he said. “We invite the investigation.”

Almost a year later, the investigation continues. Silver has expressed a desire for a resolution, saying in June that it “needs to be wrapped up before next season.” The NBA regular season will begin in October.

Salary-cap circumvention first surfaced with Leonard during his free agency in 2019 after he led the Raptors to the NBA championship. Negotiations with the Lakers ceased when Leonard’s uncle, Dennis Robertson, requested a house, the use of private aircraft, guaranteed off-court earnings and an ownership stake in the team, according to Dan Woike of the Athletic. The Lakers informed Leonard’s representatives that those requests violated the NBA collective bargaining agreement and Leonard eventually signed with the Clippers, where he played the last seven seasons.

Artificial intelligence music company Suno is going retro — eventually.

The Cambridge, Mass.-based AI company has announced Suno Vinyl, a service that will press users’ generated AI tracks onto vinyl records. It has not gone live. The company has started a waiting list, with the first pressing reserved for users who sign up. A Suno spokesperson said the company is exploring ways for people to turn their music into physical artifacts.

“Press a banger, because it’s too good to live on a screen,” Suno wrote on its website.

Users will be able to build a tracklist of up to 46 minutes from their Suno library, then either upload their own album artwork or generate it on the platform for the sleeve, labels and cover. Each record will be a 12-inch pressing made from PETG, a type of plastic. Pricing is estimated about $45 plus shipping. Suno has not said who will press the records.

Vinyl records have seen a major resurgence ever since millennials brought the format back into mainstream culture in the 2010s. Over the years, it’s become customary for major musicians to release several vinyl variants to help promote their latest album. Olivia Rodrigo most recently released roughly 10 variants of her new album, “You Seem Pretty Sad for a Girl So in Love,” in June.

Last year, vinyl record purchases accounted for more than $1 billion in U.S. sales, up more than 9%, according to the Recording Industry Assn. of America’s annual report. It was the first time vinyl revenue topped $1 billion since 1983.

The format sold 46.8 million units, against 29.5 million CDs in 2025.

Suno, founded in 2022, has established itself as a leader in AI music tech and maintains an office in Venice. In February, the company said it had surpassed 2 million paid subscribers and was on pace for $300 million in annual revenue. In June, raised more than $400 million in a Series D round led by Bond Capital, more than doubling its valuation to $5.4 billion from $2.45 billion less than a year earlier.

The growth has unfolded as the company fights on several legal fronts. Suno and its competitor Udio were sued for copyright infringement in 2024 by the RIAA on behalf of the industry’s biggest labels, including Warner Music Group, Universal Music Group and Sony Music Entertainment.

WMG was the first of the three to settle with Suno, reaching a deal last November that included a licensing agreement, Suno’s first partnership with a major label, and the sale of Warner’s Songkick concert platform to Suno.

The UMG and Sony litigation is ongoing, with a fair use hearing set for Massachusetts federal court and the labels seeking to expand their complaint. Suno also lost a case brought by German collecting society GEMA last week and is defending against legal actions from Denmark’s Koda.

Separately, class action suits against Suno and Udio have drawn support from more than 1,800 independent artists who say their recordings were used without permission to train the company’s models.

Suno has not said whether users will be able to press tracks that resemble copyrighted work, what rights users hold in the records they order, or whether the company takes a cut.

As AI creeps further into the music industry, copyright remains the sticking point — now on a format that fans seek precisely because a person made it.

The federal law enforcement probe into the financial affairs of the Dodgers’ controlling owner, Mark Walter, seems to focus on what looks like an obscure financial maneuver: related-party transactions.

They are deals between entities with business or personal ties, including loans, sales and other transactions, that can have legitimate reasons but pose potential conflicts of interest and typically require extra scrutiny.

Walter tapped insurers he controlled to provide most of the financing for the $2.15-billion acquisition of the Dodgers in 2012, The Times has reported — a deal later vetted by state insurance regulators.

Now, regulators reportedly are investigating whether billions of dollars’ worth of similar loans made by Walter’s companies were properly disclosed.

There are examples in which related-party transactions led to trouble, including the 2001 bankruptcy of Enron Corp., the largest at the time in Wall Street history. Bernie Madoff profited from his Ponzi scheme through related-party loans.

At issue with Walter is $21 billion in loans not disclosed to state insurance regulators that were made by two Delaware insurers he owns, according to ratings agency Fitch. The loans reportedly were made to companies with ties to Walter or his TWG Global holdings company.

The seriousness of the investigation has been highlighted by subpoenas served on the insurers and the reported seizure of Walter’s cellphone and laptop by federal authorities. Still, investigations by prosecutors and securities regulators can result in no action.

Here are more details on the risk presented by related-party transactions and why they require disclosure and extra regulatory scrutiny.

What do the investigations mean for his ownership of his sport teams?

The 66-year-old billionaire also took a majority stake in the Los Angeles Lakers last year and owns the Chelsea soccer team in the English Premier League. There is no indication yet that any of this has affected his ownership stakes, but the probe has yet to be completed.

What is the problem with related-party transactions?

Bruce Dubinsky, a forensic accountant who worked on the Enron and Madoff cases, says the issue comes down to the motivation of the parties and can be explained through an analogy.

Sell a car to a stranger and you both research its worth and come to an agreed “fair market value,” he said. Sell it to your brother, you might cut the price to “give him a deal,” and later even forgive the payments.

“That’s why, from an audit standpoint, there should be more scrutiny if you’re doing business with the left hand and the right hand, because it’s easier to manipulate things,” Dubinsky said. “Repayments can be delayed indefinitely. They are always more suspect to fraud.”

How does that play out in the insurance industry?

Insurance is one of the most regulated industries, since the companies hold premium dollars from policyholders for future claims payouts — and regulators want to ensure the money is there when it’s needed. Related-party transactions can threaten that.

“There is a conflict of interest between the policyholders’ interest in the company being profitable and the owner’s interest in getting the least expensive financing that is available,” said Jim Donelon, who served as Louisiana insurance commissioner for 18 years before stepping down in 2024.

“It potentially threatens the solvency of the company, which then threatens the welfare of the policyholders,” Donelon said.

The National Assn. of Insurance Commissioners, for whom Donelon served as president, provides guidance to regulators on how to review related-party transactions.

What are some of the most notable examples of related-party transactions turning into financial disasters?

The failure of Enron was a prime lesson in how related-party transactions can lead to a company’s downfall.

As the Houston energy trader struggled and racked up $30 billion in debt, chief financial officer Andrew Fastow thought he found a way to keep it off Enron’s books. He created off-balance sheet entities to unload the debt and took personal stakes in them, allowing him to sit on both sides of the negotiation and pocket millions.

They were “transactions with related parties that were not at arm’s length,” Dubinsky said.

The debacle was a driving force in the passage of the Sarbanes-Oxley Act of 2002, which tightened regulations over governance, accounting and related-party transactions.

What about the Madoff fraud?

The Madoff scandal, in which investors lost $17.5 billion in invested principal, operated like a typical Ponzi scheme with returns to older investors paid by money from new investors.

However, related-party transactions were key too, and some literally involved family members. Madoff’s brother, Peter, pleaded guilty to receiving $15.7 million in sham loans and giving $9.9 million in sham loans to family members. What’s more, the auditor was a related party.

“In Madoff, what were called ‘related‑party loans’ were just sham transactions — there was no real economic substance. It was simply Madoff taking money out of his own firm,” said Dubinsky, an expert witness for the government.

Is there anything comparable with the Walter probe?

The three situations appear entirely different, but the investigation into the related-party loans made by Walter’s Delaware Life and its affiliate, Clear Spring Life and Annuity, involves vast sums of money.

After receiving the subpoenas, the firms conducted internal investigations. They had reported having $1 billion in related-party loans but, after the review, they reclassified $21 billion worth of loans as related, including $4.6 billion held by Clear Spring, said Fitch analyst Jamie Tucker, senior director of North American insurance ratings.

Executives said they were unaware the loans were going to an affiliated company.

Is there any indication what the money was used for?

“Unclear at this stage,” Tucker said. “This a developing situation with ongoing investigations.”

One clue may be a report that Walter tapped insurers to fund more deals than the Dodgers acquisition. The Wall Street Journal said five insurers had provided more than $10 billion in deal funding since Walter’s financial services company, Guggenheim Partners, got into the insurance business after the 2008 financial crisis.

What have been the implications for the insurers owned by Walters?

Fitch said the financial restatement increased the two insurers’ related-party loans from 2% to 40% of their portfolios, the highest exposure among life insurers it rates in North America.

Fitch, A.M. Best and S&P Global also downgraded Delaware Life’s outlook to negative, though they said the insurer maintain a high level of financial strength.

“Our capital position and liquidity remain strong, and our financial strength ratings are unchanged,” said Group 1001, the insurers’ parent company, in a statement.

What has Walter had to say about all this?

He has not publicly commented, but a TWG spokesperson stated that, “Mark Walter and TWG have always acted in good faith, and those who have done business with Mark know him as honest and straightforward. Nothing about these transactions was any different.”

Mayor Karen Bass said Thursday that the LAPD should stop working with Flock Safety, warning that the company, which operates AI-enabled license plate readers that allow authorities to monitor vehicles around the city, had lost public trust.

In her most forceful comments to date on the topic, Bass said while she supports license plate reading technology generally as a tool for law enforcement, Flock had “lost the trust of Angelenos and residents across the country, especially in immigrant communities targeted by the federal administration.”

“There are many companies that provide this technology to cities nationwide,” Bass said in a statement. “The LAPD needs to identify another company that doesn’t share data.”

LAPD officials have said Flock’s technology enables investigators to solve crimes, helping to find vehicles that have been reported stolen or linked to suspects. Last month, the department announced it was pausing its relationship with Flock, but police officials later said they were in the process of negotiating a new deal with the company that would include more data sharing and collection safeguards.

Dozens of mostly smaller cities have deactivated their Flock cameras or ended their contracts with the company over concerns that it provides data to the Trump administration that can be used to track down immigrants for deportation.

Bass joined the chorus of activists and local officials calling for the LAPD to end its relationship with the company outright.

Her opponent in the November mayoral election, Nithya Raman, said last week on the social media platform X that the city should “cut ties with Flock Safety.”

“Cities across the country are canceling their Flock contracts over the risks its license plate readers pose to privacy, civil liberties, and immigrant communities,” Raman’s post read.

Last month, Bass signed an ordinance that prohibits city personnel from providing anyone outside local government access to data that can be used to determine someone’s immigration status.

A recent Washington Post report uncovered at least 50 instances nationwide in which law enforcement officials were accused of misusing their access to the cameras, largely to stalk former romantic partners or citizens.

A report issued last month by the LAPD inspector general’s office found numerous “limitations” in the department’s existing agreements with its three plate reader vendors — Flock, Axon and Motorola — including a lack of clear language about how long the data are retained and how they are shared with third parties or other law enforcement agencies.

The inspector general recommended that the department update its current license plate reader contracts to address data security and privacy concerns, conduct regular audits and develop standardized rules for traffic stops based on plate reader hits.

Flock has said its customers decide who can access data from their cameras. The company said it doesn’t have contracts with the U.S. Immigration and Customs Enforcement, adding that has taken other steps to assuage public concern, such as barring federal agencies from its lookup tools and restricting immigration-related searches to ensure compliance with laws in California, Washington and other states.

In an interview with ABC7 last month, Flock CEO Garrett Langley said the company had to “tighten up the police and make sure everyone’s aligned and then turn it back on. He said the company retains the data from its plate readers for only 30 days and denied that its cameras employ facial recognition software as some of its critics have suggested.

During a virtual listening session hosted last week by the inspector general’s office, dozens of people sounded off on the department’s use of Flock cameras.

Some speakers, mostly from the fire-ravaged community of Pacific Palisades, supported the use of cameras to deter burglars who have repeatedly hit homes and construction sites in the area.

Jennifer Wolfe, who identified herself as a teacher in Altadena, another community devastated by the 2025 wildfires, urged Flock’s supporters to consider how “surveillance systems can grow far beyond their intended purpose.”

Locating stolen cars is important, she said, but people should be more concerned by this newfound and unchecked ability for the government to collect “vastly more information, with far less effort.”

British regulators on Thursday cleared tech scion David Ellison’s $111-billion deal to buy Warner Bros. Discovery — the latest international agency to find the blockbuster combination of TV channels and historic film studios wouldn’t dampen competition.

Britain’s Competition and Markets Authority and the government’s culture minister separately reviewed Paramount Skydance’s proposed Warner acquisition, which is facing significant turbulence in the U.S. as California Atty. Gen. Rob Bonta leads a coalition of state attorneys general who are battling to try to unravel the mammoth deal.

“The evidence shows that, after the merger, Paramount will continue to face sufficient competition in the various areas it operates in, including the production and distribution of films and TV content, the supply of children’s channels to pay-TV providers and the supply of streaming services,” the authority said in a statement.

Earlier this summer, Secretary of State for Digital, Culture, Media and Sport Lisa Nandy said she was weighing whether to intervene by launching an in-depth investigation into potential harms that could result from the proposed Paramount-Warner Bros. combination.

Nandy opted not to issue an “intervention notice” after striking an agreement with Paramount that provides “assurances and legally-binding commitments” that the company would not abuse its market clout.

The authority’s approval was significant because Paramount owns CBS News, children’s channel Nickelodeon and Channel 5, one of the largest over-the-air television broadcasters in the United Kingdom.

Warner Bros. Discovery owns HBO, CNN, Cartoon Network and TNT Sports, which broadcasts the Olympics, Champions League and Premier League soccer matches.

Ellison and his team now have won clearances from 66 antitrust regulators, including the U.S. Department of Justice, and regulators in Australia, Germany, France, Italy, China and Canada, among others. The European Commission also approved the deal last month.

“These clearances recognize that the combination of Paramount and WBD will enhance consumer choice and enable a creative-first company to invest in more projects and bring stories to audiences worldwide,” Paramount said in a statement.

Still, the deal is stalled in the U.S.

Bonta and his fellow Democrat state attorneys general have won early victories in their court battle, and a federal judge this week scheduled a March trial — months later than Paramount had hoped — to determine whether the merger would violate the century-old U.S. Clayton Antitrust Act.

Paramount is facing a June 4 deadline to finalize the deal or pay Warner a $7-billion break-up fee.

Bonta and the 11 other state attorneys general, including from New York, Colorado and Oregon, have alleged the merger of two major film studios would give Paramount-Warner Bros. more than 25% of the wide-release theatrical film market. Their lawsuit contends the combined company would own too many cable TV channels — more than 50, including CNN, TBS, HGTV and Comedy Central.

The Writers Guild of America has separately sued to block the transaction, claiming the combination of two historic studios would reduce opportunities and pay for writers.

Ellison, in a guest essay this week, blamed politics for the U.S. friction. “The issue is whether I can be trusted as a steward of Warner’s CNN,” Ellison wrote in his op-ed in the New York Times.

Bonta, in a recent interview with The Times, denied his lawsuit was motivated by politics, saying it was a “meat-and-potatoes” antitrust case.

More than 5,000 entertainment industry workers, including such high-profile stars as Jane Fonda, Ben Stiller, Bryan Cranston and Mark Ruffalo, signed an open letter early this year, calling on Bonta to thwart the merger. The group alleged the transaction would weaken Hollywood with “fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences.”

Britain’s competition authority found the combined company would still encounter competition from Universal Pictures, Disney and Sony Pictures Entertainment and “a range of other smaller studios.”

In addition, the CMA factored in the competition brought by streaming services to traditional forms of movie and TV distribution — one of Paramount’s key arguments.

“Paramount is grateful to the CMA for its constructive engagement and its review of the transaction,” Paramount said in its statement. “These conclusions further demonstrate the misguided and gerrymandered market definitions relied upon by the US state AGs in their antitrust complaint in California.”

The Walt Disney Co. said Wednesday it has sold out the commercial time for ESPN’s telecast of the 2027 Super Bowl, which airs on ABC Feb. 14.

Hugh Johnston, chief financial officer for Disney, announced the sellout on the company’s earnings call. In addition to ABC, the game from SoFi Stadium in Los Angeles will air on ESPN, and have an alternative ESPN feed hosted by Peyton and Eli Manning. The game will be streamed on the ESPN app and the NFL+ app.

ESPN, which has carried NFL games since 1987, has never produced a Super Bowl. ABC last aired the game in 2006, when the network had its own sports division.

The Super Bowl is perennially the most watched TV event of the year, bringing in a huge pot of revenue for the media company holding the rights. Fox said it took in more than $800 million across its platforms for the 2025 game that saw the Philadelphia Eagles win 40-22 over the Kansas City Chiefs.

Disney did not divulge a price for the commercial time, although reports said the company was seeking $10 million for a 30-second spot. NBC sold several commercials at that rate last year.

Johnston said Disney sold Super Bowl spots to 58 brands across 34 product categories, including financial services, candy, personal care and software. Nine of the brands are in the game for the first time.

As the rest of traditional TV has seen ratings diminish, the Super Bowl has remained resilient, setting a viewership record in 2025, with 127.7 million viewers watching on Fox and its streaming platform Tubi, according to Nielsen. Last season’s contest drew 125 million viewers on NBC, Telemundo and Peacock.

When ABC had Super Bowl XL in 2006, the Pittsburgh Steelers’ 21-10 win over the Seattle Seahawks scored 90.7 million viewers. Nielsen did not include out-of-home viewing in its data at the time.

Live sports has become attractive to advertisers as it is one of the few ways to reach a massive audience in real time.

Top executives of California’s two biggest utilities warned they would take action to protect their shareholders if Sacramento lawmakers fail to pass legislation limiting their companies’ liabilities for wildfires sparked by their equipment.

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

Poppe did not specify what her company would do, but made it clear any action would protect shareholders’ money. Previously, she told Wall Street analysts that if lawmakers failed to pass legislation to protect the utilities, PG&E would use its cash to buy back the company’s shares, according to a report by the bank Jeffries.

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

The comments from Poppe and Pedro Pizarro, chief executive of Edison International, came just before the state Legislature returned from summer break Monday to begin the last four weeks of its session.

Gov. Gavin Newsom and legislators have been working behind closed doors to address the state’s escalating cost of wildfires, including those caused by the utilities, The Times reported last month. The big electric companies have told their investors they are talking to Newsom and lawmakers about a bill package that would protect shareholders from paying for utility-sparked fires.

On Tuesday, government fire officials released their investigation into last year’s devastating Eaton fire, blaming Edison’s century-old transmission line, which the utility kept in place even though it had not carried power since 1971.

Last week, Edison’s Pizarro echoed some of Poppe’s statements. He told Wall Street analysts on a conference call that he too was prepared to make financial changes if the legislature does not pass a comprehensive bill that cuts the utilities’ financial wildfire risk before the legislative session ends Aug. 31.

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

Pizarro declined analysts’ requests to say where the company would cut back, other than saying it would continue spending aimed at keeping its grid safe and reliable.

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

Pizarro also told analysts that without legislation supporting the utilities, Edison’s credit rating could be downgraded. If that happens, he said, it could raise bills for electric customers since the utility may have to pay a higher interest rate for new borrowings.

“That could be a significant cost impact through the cost of debt that gets passed through to SCE customers if we don’t have a framework in the next four weeks that is credit supportive for our utility,” Pizarro told the analysts.

Newsom and lawmakers are drawing up legislation based on recommendations in an April study that the governor ordered last year.

The final report didn’t focus on utilities’ responsibility for sparking at least seven of the 20 most destructive wildfires in state history. It suggested ways to reduce the cost of wildfire liabilities, including by capping fees of attorneys representing victims and reducing payments to survivors for non-economic damages like pain and suffering.

The report also suggested that utilities should no longer reimburse property insurers for damages of fires sparked by electrical equipment. Insurers say this would increase premiums for homeowners.

Edison is now facing thousands of lawsuits from the victims of the Eaton fire, which roared through Altadena, destroying more than 9,000 homes and other structures and killing 19 people. The lawsuits claim it was negligent for the fire, which Edison denies.

The utility created a program to pay for victims’ damages if they agree to give up their right to sue.

Edison has so far paid more than $1 billion to victims. Experts say the fire’s costs could exceed the $21-billion state wildfire fund that Newsom and lawmakers created in 2019 to protect Edison, PG&E and San Diego Gas & Electric.

If that happens, Edison customers must pay for the rest under legislation that Newsom and lawmakers introduced in the final days of last year’s legislative session.

Because of utility protections in legislation that Newsom and lawmakers passed in 2019 and last year, Edison has said it expects its shareholders to pay little for the Eaton fire. The utility says it believes it will be reimbursed for its damage payments to victims by the state wildfire fund and through customer bills, according to the company’s financial disclosures.

A coalition of wildfire survivors, consumer advocates and other groups wrote a letter to Newsom last month, asking him for legislation that keeps utilities accountable for the fires they cause.

The coalition pointed out that despite billions of dollars in damages from the Eaton fire, Edison’s profits soared last year by more than 200% — from $1.3 billion in 2024 to $4.5 billion.

The company’s board also rewarded Edison executives with higher salaries and bonuses. Pizarro received $16.6 million in cash, stock and other compensation, up 20% from 2024.

“For-profit companies that repeatedly cause catastrophic harm must be held accountable, not protected and enriched,” wrote Joy Chen, executive director of Every Fire Survivors Network, who is leading the coalition, in the letter to Newsom.

The letter warned that without reform of current state laws protecting utilities, disasters like the Eaton fire could happen again.

“Altadena is not the first community to endure this cycle, and it will not be the last,” the letter said.

After three years, “Ted Lasso” has returned to the pitch. Did it need to? The third season finale, which seemed until now to be a series finale, brought most every character’s arc to a satisfying, credible conclusion — the less satisfying ones were just as credible — while pointing to a future you were free to imagine, or think nothing more about. Or you could write fan fiction. (People do.) I loved the show, but its absence has not been a painful one.

Anyway, it’s back, beginning Wednesday on Apple TV, and I am glad enough. Strictly speaking, it’s a new adventure, as one Indiana Jones movie might follow another, with Jason Sudeikis’ title character returning to Richmond to manage a new women’s soccer team, a project raised way back at the end of Season 3, and which now has “been three years in the making.”

Where are we now? Star player Jamie Tartt has departed the show all the way to Barcelona; kit man turned coach turned competition turned kit man Nate Shelley is nowhere to be seen. But as much may be said of the whole of AFC Richmond, apart from Roy Kent (Brett Goldstein), who took over as manager when Ted returned to Kansas City, Mo., to spend more time with son Henry (Grant Feely, replacing Gus Turner), and Coach Beard (Brendan Hunt), who has turned into an uncommunicative mass of hair. This is not at all that team’s story, though certain fans within (and perhaps without) the world of the series might prefer that it was.

Four episodes out of 10 have been made available for review. The first is something of a hurdle, bogged down in contrivances to get Ted back to Richmond from Kansas City, where he has been “trying to help [Henry] become the best version of himself.” The question is whether Ted, working part time as the assistant manager of a supermarket, is living the best version of himself. The answer, as everyone but Ted recognizes, is no. Naturally, he spreads sunshine all over the place, being who he is, but this is not the future you would have written for him, nor one suggested by the third season finale, where we saw him coaching Henry’s soccer team. But it gives him a place to come back from.

Hannah Waddingham, left, and Juno Temple in “Ted Lasso.”

And so club owner Rebecca Welton (Hannah Waddingham), director of operations Leslie Higgins (Jeremy Swift) and queen of all marketing Keeley Jones (Juno Temple) show up on Ted’s doorstep to propose that he manage the Lady Greyhounds, “to lay the foundations of the Richmond culture that you created with our men.” (He has not been checking his messages, apparently, necessitating this in-person, three-person visit.)

In addition to dragging the pieces into place, much of the opening episode seems meant to satisfy an impulse to show off Kansas City — Sudeikis grew up in that area. There are multiple excursions for barbecue, each resulting in stained clothes for Rebecca. There’s a trip to CPKC Stadium, “the first privately funded stadium in the world solely for pro women’s soccer,” to see the Kansas City Current play.

Finding the American Jazz Museum closed, Higgins (earlier established as a double bassist) wanders across 18th Street to the Negro Leagues Baseball Museum, where a friendly docent (Milan Carter) schools him on its history, including a long tribute to pitcher Satchel Paige, with oddly interpolated documentary footage. (Higgins ventures that their experience is “quite similar to how women in England weren’t allowed to play football for years,” an idea his Black host shoots down with a well-aimed, “Mmmmm.”)

“They didn’t do it for fame or fortune. They did it ‘cause to not play would have been unacceptable,” he’s told. Or, as former AFC Richmond striker Dani Rojas said of soccer: “Football is life.”

Things improve in the more natural second episode (and improve from there), which takes us finally back to Richmond. Ted’s only real objection to leaving Kansas City is almost too easily overcome by suggesting that Henry and his mother, Michelle (Andrea Anders), the ex- but not estranged wife, come with him. Having won over all doubters over the first three seasons, Ted needs someone new to charm, and that will be coach Alice Chilton (Tanya Reynolds), who had hoped for the manager’s job. She’s a little rain cloud of a person, dour and humorless, though perhaps rightly offended by being passed over. Reynolds, who’ll certainly emerge as the season’s star, makes a big impression by holding things in, acting almost entirely with her eyes, so that when she cracks a smile in spite of herself, it registers as huge.

Jude Mack as player Boots in “Ted Lasso.”

Among the players, our attention is directed to Boots (Jude Mack), whom we notice because of her short-cropped hair, and because she’s the goalkeeper, and has a quirk — though she’s a powerhouse, “none of the big clubs will touch her because she won’t wear gloves.” (She prefers to keep things tactile. “What’s the point of life if you’re not feeling it?” Boots asks in another of the show’s sampler sentiments.) Lizzie (Faye Marsay) stands out because she arrives to an open call with a cute child in tow and is older and more mature than the others, Gemma (Abbie Hern), by virtue of having unresolved old business with Alice, and having, like Ted, to be talked onto the team.

The underdog aspect of it all will be emphasized, of course — a new team, in a money-losing second division, with second-rate locker room accommodations, seasoned with sexism that may or may not reflect actual British attitudes toward women’s soccer. Feminist themes, always present vis-a-vis Rebecca and Keeley, not unreasonably take the foreground, with Rebecca overcorrecting the thought that she might not be one — a funny conversation with Harriet Walter as her mother comes out of this — and Tracey Ullman arriving in Episode 4 to be badass.

By the end of that episode, there will have been enough sweet, celebratory moments to have rewarded your investment. (I gauge this scientifically by how often I choke up.) Where the story is going in any substantial way, other than, you know, win games, maybe get Roy and Keeley back together, do something interesting with Henry and/or Michelle, it’s too soon to tell. I assume it’s going somewhere, but we’ll find that out together.

Paramount Skydance must wait until March to defend its proposed $111-billion acquisition of Warner Bros. Discovery — a blockbuster deal that would reshape Hollywood by uniting two storied studios.

On Tuesday, U.S. District Judge Araceli Martínez-Olguín scheduled a March 2 trial to decide the merits of an antitrust challenge brought by 12 state attorneys general, led by California Atty. Gen. Rob Bonta. The states are teaming up to try to derail Paramount’s merger, and have snared preliminary victories — prompting a concession from Paramount to put the merger on hold until after the trial.

Paramount had asked for a Nov. 4 trial date.

Tech scion David Ellison wants to add HBO, CNN, HGTV, Food Network and the Warner Bros. studio to his smaller stable of Paramount properties. The trial will span 12 days and conclude March 19, the judge wrote in her order.

“We will continue to vigorously defend the transaction and remain committed to closing as soon as possible so its benefits for the creative community and consumers can be realized,” Paramount said in a statement.

The Writers Guild of America has separately sued to block the merger.

Friday marks the one-year anniversary of Ellison’s purchase of Paramount.

“Looking back on the past twelve months, I’m incredibly proud of how our team has turned those priorities into measurable progress, reflecting their talent, hard work, and dedication,” Ellison wrote in a Tuesday letter to shareholders as the company released its second-quarter earnings.

Results were mixed.

Revenue inched up 1% to $6.91 billion compared to the year-ago period, when Paramount was controlled by media heiress Shari Redstone.

The company’s studios and streaming divisions turned in stronger performances but costs, including $153 million in merger-related expenses, weighed on the corporate entity.

Profit declined 28% to $41 million, or 4 cents a share, compared to $57 million in the year-earlier period.

Paramount said it now has 81.6 million streaming customers, an increase of 2 million from the first quarter.

Streaming operations produced $2.5 billion in revenue, a 9% boost from the same quarter a year ago. Paramount+, which boasts the Taylor Sheridan-produced “Landman” and “Dutton Ranch,” also televised President Trump’s birthday extravaganza, the UFC Freedom 250 fights in June from the White House lawn.

Coverage of the FIFA World Cup in some Latin American countries assisted the streaming results. (Fox and Telemundo broadcast the highly rated soccer matches in the U.S.)

Studios revenue increased 16% to $1.3 billion, boosted by Paramount’s television studios and its licensing deals as well as the ability to consolidate revenue from Skydance properties. During the quarter, the Melrose Avenue film studio released “Scary Movie,” which brought in $231 million in global ticket sales, surpassing expectations.

Television media, which includes the CBS network, TV stations and the company’s struggling cable channels, declined 9% to $3.1 billion. Advertising revenue fell 14% and the company felt the loss of South American television operations, Telefe and Chilevision, which it divested after the Ellison takeover.

The company revenue during the current quarter should come in around $7 billion. It also released its full-year guidance, saying it expects $30 billion in revenue, up 4% over 2025.

Paramount released the earnings after markets closed Tuesday. During regular trading, shares gained nearly 2% to close at $8.38.

“Spider-Man: Brand New Day” opened to $360 million in the U.S. and Canada this weekend, pushing out 2019’s “Avengers: Endgame” to claim the biggest domestic debut in history.

“Records are made to be broken,” Sony Motion Picture Group Chairman Tom Rothman said in a statement Monday. “But we will take great pride in this one, for as long as we hold it.”

Internationally, the web-slinger picked up an additional $572 million for a worldwide total of $932 million. The film, which stars Tom Holland and Zendaya, was produced by Sony-owned Columbia Pictures, Marvel Studios and Pascal Pictures on a production budget of about $225 million.

By Monday morning, nearly everyone in the exhibition business was cheering.

The chief executives of AMC Entertainment Holdings, Regal and Cinemark Holdings all put out statements about record revenue at their chains, plus deep demand for merchandise, food and drinks. Cinema United trade group chief executive Michael O’Leary applauded the “great slate of films” that have populated theaters this year.

There’s a lot to be excited about here. Expectations for the film were high, but breaking a pre-pandemic record — previously held by an “Avengers” movie, no less — is a big deal.

“The buildup to what ‘Endgame’ was at $357 million just seemed out of reach,” Jeff Bock, senior box office analyst at entertainment data firm Exhibitor Relations, told me on Monday, referring to the previous domestic debut record. “It’s pretty gratifying to see that characters and emotions still matter in filmmaking. This movie was just really about relationships.”

That emotional core was a major focus for the filmmakers. When I spoke with producer Amy Pascal in the lead-up to the opening, she said there was no topping the multiverse storyline of 2021‘s “Spider-Man: No Way Home,” which featured the return of Tobey Maguire and Andrew Garfield. Instead, the filmmakers chose to go smaller, focusing on the internal conflict and loneliness of Holland’s Peter Parker after a spell forces his friends to forget him.

Spider-Man has always been one of the most popular superheroes. But not every Spidey film has had this level of box office success. What “Brand New Day” shows is that a strong story matters more to audiences than the name of the superhero alone — an important distinction as the genre has weathered an uneven track record in recent years. Just this summer, we saw stumbles from Amazon MGM Studios’ “Masters of the Universe” and Warner Bros. Pictures and DC Studios’ “Supergirl.”

The next test arrives in December with Walt Disney Co. and Marvel Studios’ “Avengers: Doomsday,” which “Brand New Day” teases in a post-credits scene, as well as throughout the film. “As audiences saw, it sets up exciting things to come,” Marvel Studios President and “Spider-Man” producer Kevin Feige said in a Sunday statement.

The recovery, by the numbers

Domestic box office revenue for the weekend totaled $436.5 million, according to data from Rentrak. Spider-Man accounted for 82% of it, but Christopher Nolan’s “The Odyssey” also hauled in $51 million in its third weekend, on its way to worldwide revenue of more than $912 million.

Together, the pair have combined for a unique, and telling, one-two punch. It’s the same phenomenon that drove moviegoers to A24’s “Backrooms” and Focus Features’ “Obsession.” Originality in storytelling really does matter, despite the plethora of reboots and sequels. And when moviegoers have more choices, they’re coming back, again and again, analysts say.

“These two films in particular have really turned moviegoing itself into the event,” Bock said. “The audience isn’t rejecting theatrical movies. They’re rejecting films that don’t feel essential.”

Domestic summer box office revenue to date now stands at nearly $3.6 billion, up 16.7% compared to 2025 and — importantly — only 0.7% behind the same period in 2019. Year-to-date revenue is about $6.2 billion, a 15.4% improvement from last year, though it still lags 2019 by 11.6%.

And with another blockbuster to come in December — Warner Bros. and Legendary Entertainment’s “Dune: Part Three” — analysts now predict 2026 domestic revenue is on track to reach $10 billion, a milestone that hasn’t happened since before the pandemic.

What could undo it

Here’s the catch. A major part of that recovery rests on volume: more titles, more genres, more reasons to leave the house on a given weekend. Which is exactly what a federal judge in Oakland is weighing right now.

Paramount Skydance’s nearly $111-billion acquisition of Warner Bros. Discovery has cleared the Justice Department, the European Commission and regulators in more than a dozen other countries. What it has not cleared is a coalition of 12 state attorneys general, led by California’s Rob Bonta, who sued July 13 to block the deal under the Clayton Antitrust Act.

On Friday, the parties each proposed their preferred dates for an antitrust trial over which U.S. District Judge Araceli Martínez-Olguín will preside as Paramount argues for its merger to proceed and the state attorneys general argue against it. The judge has said the states had presented compelling evidence the combined company would hold a substantial share of the wide-release theatrical distribution market — enough, she said, to presume the deal likely violates antitrust law. The Writers Guild of America has joined the states’ lawsuit.

Paramount has said the merger will benefit consumers, workers and the entertainment industry, and that the states’ claims of anticompetitive effects “are without any basis in modern market realities.”

Hollywood has seen this movie before. The last unaccounted-for variable from the pre-pandemic era is Disney’s 2019 acquisition of the entertainment assets of 21st Century Fox, which combined two studios and led to fewer theatrical releases.

Paramount Skydance chief executive David Ellison has promised the combined company will release a minimum of 30 films a year. Many in Hollywood have their doubts.

“If they’re able to execute on that promise of 30 titles a year, I think we’re going to accelerate even further,” said Daniel Loria, a senior vice president at The Box Office Co. “We’re on a great trajectory. But there are serious questions that remain on their capacity to do so, and what the impact of another slowdown in releases from a major studio would bring.”

Paramount has said it won’t close the deal before June 2027 unless the litigation resolves sooner, and is pushing for a November trial; the states want April 2027. Either way, the industry just posted its biggest opening weekend ever while the question of how many movies get made is sitting in a courtroom in Northern California.

Stuff We Wrote

Film shoots

Number of the week

The Hollywood Foreign Press Assn. has sued Jay Penske, Penske Media Corp., the Golden Globe Foundation and others over the 2023 acquisition of the Golden Globe Awards, alleging antitrust violations.

As my colleague Stacy Perman reported, the Hollywood Foreign Press Assn. is seeking at least $150 million in damages.

The group, which founded the Golden Globes, said in its lawsuit that Penske and the other named defendants “orchestrated and participated in a clandestine scheme to fraudulently acquire the Golden Globe Awards, dismantle the HFPA [Hollywood Foreign Press Assn.], and exert monopolistic control over Hollywood trades and the awards circuit thereby violating California’s antitrust and consumer protection statutes.”

A spokesperson for Penske and the Golden Globes denied the allegations, saying the suit “continues the absurdity and irrationality that the industry has come to expect from the defunct organization formerly known as the HFPA.”

What I’m watching

I had a pretty hectic week, which didn’t leave a lot of time to catch up on TV. But I did go see the L.A. Sparks game against the New York Liberty, which unfortunately ended in a loss. We’ll see what happens now that star Kelsey Plum has been traded.

Aug. 4 (UPI) — McDonald’s on Tuesday named a company veteran to lead the burger chain’s largest market.

Skye Anderson, who has been with the company for 26 years, will oversee nearly 14,000 restaurants as president of McDonald’s USA. She had previously been chief operating officer of the company’s U.S. business.

Chris Kempczinski, chairman and CEO of McDonald’s Corporation, said Anderson combines “deep operational discipline with strong financial judgement.”

“I’ve had the opportunity to work closely with Skye throughout much of her career, and I’ve repeatedly turned to her to lead some of our most important businesses and transformation efforts because she’s a proven change agent who can act with urgency to mobilize our System,” Kempczinski said in a statement.

Anderson succeeds Joe Erlinger, a 20-year McDonald’s veteran who had been president for the past seven years before deciding to leave the company.

Kempczinski said Erlinger will work closely with Anderson during the transition period.

Anderson’s appointment comes at a tricky time for McDonald’s, as the company on Tuesday reported quarterly results falling short of its expectations.

Executives described the performance as “disappointing,” CNBC reported.

“We don’t have a strategy problem,” Kempczinski said, the outlet reported. “We simply didn’t execute at the level we needed to in the second quarter.”

Over the weekend, the Inland Empire radio station, KCAL-FM 96.7, started playing music without any on-air staff.

The Redlands-based radio station laid off all of its radio personalities last week and transitioned into an “All Music, All the Time” classic rock format.

“96.7 KCAL Rocks is turning the page today. Thank you to every listener who made the last chapter what it was,” the station’s staff wrote in a social media post. “Classic rock. Nothing but music. All day across the Inland Empire.”

The station’s veteran radio hosts, part-time and weekend fill-ins, were all cut from the rock station, including Daryl Norsell, who worked at the station for 42 years; Patrick Tish, who said he worked at the station for 15 years and Nikki Preston. John DeSantis, the evening host and program director for the past six years, confirmed the layoffs in a social media post.

“They will be moving to an automated, human-less format. To say this is shocking is an understatement. I have a lot to process, and will be saying more shortly,” DeSantis wrote. “But for right now, I just want to thank all of you for letting me be part of the KCAL family. It has been a radio dream come true. You will always rock.”

The radio station has served the Inland Empire ever since first hitting the airwaves in 1965. KCAL is owned by Anaheim Broadcasting Corporation, which also operates the area’s classic hits radio station, KOLA 99.9FM. Together, the two stations reach over 800,000 weekly listeners in the Riverside-San Bernardino market, according to Anaheim Broadcasting. The company could not be reached directly for a comment on the layoffs.

“We rebuilt KCAL around the music our listeners grew up on, the songs and the artists that made classic rock,” Kelly Sanders, the chief operating officer of Anaheim Broadcasting Corporation, said in a news release to the Southern California News Group “KCAL will deliver a focused, consistent listening experience with broader appeal for both our audience and advertising partners.”

The release also noted that the change “expands the station’s musical focus and will have fewer interruptions and more music throughout the day” and did not address the layoffs, according to a report from the OC Register.

This is the second major blow to the Inland Empire’s broadcast community this summer. In June, the last local on-air hosts at Riverside-based KGGI-FM were laid off, in iHeartMedia’s latest round of national job cuts. In an internal memo, the media giant said the cuts were meant to restructure its radio programming to better “leverage” the company’s technology.

Steve “Razz” Brazill started working at KCAL FM in 1987, as the station’s resident concert photographer and radio personality. In a social media post, he called KCAL his “home” and reminisced about hosting live events at the now-closed Whiskey Creek restaurant in Redlands.

“KCAL has been a part of my identity. And I’m so happy to say I never really had coworkers, I had friends and family, and memories I’ll cherish forever,” wrote Brazill. “Being a part of KCAL ended for all of us today, but those relationships won’t. I’ll miss seeing you all at the studio, but I look forward to seeing you in real life.”

The UK travel company has stopped all coach and minibus services as a liquidator has been named after a decade in business

A UK travel company has plunged into liquidation as its website disappears completely, with passengers unable to make new bookings.

TS Travels Group Ltd offered ‘reliable and safe coach services for tours in West Yorkshire‘.

They claimed to have experienced drivers and well-maintained vehicles ahead of the collapse.

The business covered Leeds, Wakefield, Huddersfield, and Bradford and provided private hire, corporate transfers and school trips.

On July 29, 2026 a liquidator, Laura Anne Walshe of Keywood Group Limited, was appointed.

According to Companies House the travel firm had been in operation for over a decade, incorporated on July 3, 2015.

The company’s full accounts dated up to July 31, 2025 shows that they had over £250,000 worth of debts. It is unclear whether the closure has created job losses.

It is not the first West Yorkshire based travel company to go bust in recent months. Gold Crest Holidays, based in Ilkley, confirmed it had ceased operations after more than 30 years in January.

The family-owned coach tour operator said it was “deeply saddened” to have entered liquidation at the beginning of the year.

Under a new licensing agreement, Netflix will be streaming “The Walking Dead” franchise globally.

Netflix and AMC Global Media, the network that originally aired the zombie series, inked a new five-year co-streaming deal, according to a press release on Thursday. Both companies will be able to show the original “The Walking Dead” series and its six spinoffs on Netflix and AMC+. The deal is valued at $500 million, AMC Global Media said in its second-quarter earnings report.

“This deal creates a global destination for this universe — all shows, all episodes — making the franchise more accessible than ever to fans around the world. In addition, the co-exclusive agreement allows us to bring the original series to AMC+ for the first time early next year,” Kristin Dolan, the company’s chief executive, said in a statement. “This agreement is a fantastic result for our companies, for the fans and for this timeless IP.”

AMC Global Media is renting the franchise, not selling it. The five-year licenses run separately for each show, with start dates that vary based on territory and the expiration of existing streaming deals. The rights to “The Walking Dead” revert to AMC Global Media when the term ends.

The company also keeps global rights to run the “Walking Dead” universe on its own services throughout. Dolan told investors the agreement would supply what she called “a meaningful source of cash flow for years to come,” framing it as evidence that the company’s library still commands premium prices even as its cable business shrinks.

The agreement will extend the franchise’s reach on Netflix in places like the U.K., Italy, Australia and New Zealand — making episodes available beginning in 2027.

“The Walking Dead” premiered on the AMC network in 2010, introducing audiences to the high-stakes world of a zombie apocalypse. In 2011, the series began streaming exclusively on Netflix in the U.S. The show aired for 11 seasons and became one of AMC’s most influential shows. Other popular programs from the network include “Mad Men” and “Breaking Bad.”

“Audiences have discovered and loved ‘The Walking Dead’ on Netflix for nearly 15 years and the show continues to attract new fans,” Lori Conkling, Netflix’s vice president of licensing, said in a statement.

The deal landed alongside a rough quarter. AMC Global Media reported second-quarter revenue of $547 million, down 9% from a year earlier, and a loss of 51 cents a share, compared with 91 cents in profit in the same period last year. Operating income fell to about $16 million from $64 million.

Netflix’s second-quarter earnings showed mixed results. The company‘s revenue rose 13% to $12.6 billion; its net income was $3.4 billion, up 9% from a year ago; and its advertising business is on track to reach $3 billion in revenue this year, double the amount in 2025.

The same filing offered some details on Netflix’s acquisition of InterPositive, the AI post-production startup founded by Ben Affleck, for $587 million in cash in March.

But Netflix’s stock price has continued to waver due in part to investor concerns about the streamer’s future growth.

The business empire of Dodgers and Lakers owner Mark Walter reportedly is being probed by the U.S. Attorney’s Office and securities regulators over $16 billion in possibly fraudulent loans.

The loans by two Delaware life insurers that Walter owns were made to companies tied to him or his TWG Global holding company but were not disclosed as “related party” transactions as required, the Wall Street Journal reported Sunday. Related party transactions made by insurers are required to be reported to limit conflicts of interest and protect policyholders, who have an interest in the financial strength of their insurers.

Walter, 66, chief executive of Chicago investment firm Guggenheim Partners, led a group that included Todd Boehly — another Guggenheim executive — and Magic Johnson in acquiring the Dodgers for $2.15 billion in 2012, a record for a pro sports team at the time. Last year, Walter and TWG acquired a controlling stake in the Lakers at a $10 billion valuation, a new record. Walter also owns the Chelsea soccer team in the English Premier League.

Last week, the financial and sports mogul celebrated the Dodgers’ World Series victory at the White House. It was the second time in two years, following back-to-back World Series wins.

The majority of the money used to buy the Dodgers — more than $1 billion — came from insurance companies managed by Guggenheim Partners and controlled by Walter, the Times has reported.

A number of state insurance regulators investigated the purchase in 2014 and found no irregularities, the Wall Street Journal reported in 2020.

Guggenheim Partners got into the insurance business after America’s 2008 financial crisis, spotting investment opportunities. Walter figured he could increase the returns insurers got on their typical purchases of corporate bonds by connecting them to his deal pipeline, according to the Wall Street Journal, which found that five insurers had provided more than $10 billion in deal funding over the years.

The current probe began after an internal whistleblower filed a complaint questioning the way Walter’s asset-management firm, Guggenheim Investments, booked revenue associated with insurers, the Journal reported this week, and FBI agents seized at least one cellphone related to that probe.

The investigation then spread to examining $16 billion in loans, which were passed through a third party before being received by the companies tied to Walter or TWG, the Journal reported, adding that authorities are trying to determine whether that amounted to fraud, citing an unnamed source.

The insurers, Delaware Life Insurance and its affiliate Clear Spring Life and Annuity, disclosed the investigations in June regulatory filings. Delaware Life, which earlier had stated affiliated investments amounted to only about $1 billion, or 3% of its portfolio, increased that number to $16 billion.

Delaware Life executives told one credit rating firm they were unaware the loans were made to entities tied to Walter, the Journal reported. The companies said they received grand jury subpoenas in February related to an investigation by federal prosecutors in the Southern District of New York and that the Securities and Exchange Commission also is conducting a parallel investigation.

Investigations conducted by prosecutors and securities regulators often result in no action.

The Dodgers, TWG and Guggenheim did not immediately respond to messages for comment.

A TWG spokesperson told the Journal that “Mark Walter and TWG have always acted in good faith,” are cooperating with authorities and are “confident these matters will be resolved favorably.”

After conducting an internal investigation, Delaware Life said it would restructure some related-party loans, address its internal control deficiencies and moderate its business plan, according to S&P Global. While the ratings agency is maintaining its “A-” financial strength and credit ratings of Delaware Life, it reduced its outlook to “negative” because of possible higher credit risk following changes to the insurer’s portfolio.

“In addition, such outcomes could weaken Delaware Life’s regulatory relationships and damage its reputation, which could erode its competitive position,” S&P said.

“Our capital position and liquidity remain strong, and our financial strength ratings are unchanged,” Group 1001, the insurers’ parent company, said in a statement.

“We remain focused on delivering exceptional value and service to our contract and policyholders and their financial representatives,” the statement added.

Bloomberg News contributed to this report.

Other than “The Odyssey,” the biggest news in Los Angeles film circles last week was the return of the Cinerama Dome.

The iconic theater, which has been closed since March 2020, will be restored and reopened by Sony Pictures Entertainment and its Alamo Drafthouse theater chain. As my colleague Cerys Davies reported, renovations begin next month and will continue until early 2028.

For more than 60 years, the dome has been a landmark on Sunset Boulevard. With its 86-foot-wide curved screen, it has premiered such iconic Hollywood films as 1977’s “Close Encounters of the Third Kind,” and made a cameo of its own in 2019’s “Once Upon a Time … in Hollywood.”

Ever since the dome closed at the start of the COVID-19 pandemic, there have been questions about whether it would return. Filmmakers like “Anora” director Sean Baker and “Baby Driver” director Edgar Wright publicly called for its reopening, while a “Save Your Cinema” preservation campaign led by Benjamin Steinberg kept the geodesic icon in the public eye.

“It was definitely the capital of, like, the movie-going experience in L.A.,” Steinberg told my colleague, adding that he plans to visit the theater two to three times a week when it reopens. “I can’t wait to go back inside the Cinerama Dome and watch movies.”

The theater will be operated by Alamo Drafthouse, though Sony says it plans to keep the “Cinerama” name and exterior branding, as well as the dome’s “traditional concession experience” — meaning you won’t be able to order food and drinks to your seat. (Cinephiles recently have criticized the chain for changing its in-seat ordering system to require use of mobile phones in the theater.)

Alongside traditional theatrical showings, the dome also will include some Alamo Drafthouse specials, including repertory screenings, premieres, events and filmmaker series.

Adjacent to the dome, the 14-screen former ArcLight Cinemas will reopen as an Alamo Drafthouse, Sony said, offering dine-in food and beverages, as well as karaoke rooms and “fan celebrations.”

Sony was interested in the dome even before the Culver City-based studio acquired Alamo Drafthouse in 2024.

“It’s such a great location,” Ravi Ahuja, chief executive and chairman of Sony Pictures, told me. “It’s historic, people love it and the theater was successful before it closed. It’s one of a kind, which is the kind of experience we’re after.”

The move also highlights the opportunity Sony sees in the experiences business — an increasingly important strategy for Hollywood.

The Alamo Drafthouse acquisition was part of this, as was the studio’s recent $100-million investment and minority stake in Cosm, a virtual reality venue operator that has a location at Inglewood’s Hollywood Park.

The studio also has “Wheel of Fortune Live!,” a touring version of the popular game show, “Jeopardy! Bar League,” which was incubated at Alamo Drafthouse, and events for its streaming service Crunchyroll at anime conventions.

“It’s another leg of the franchise stool,” Ahuja said. “Fans want to engage in person with each other. It’s part of a human need when you have deep fandom around something.”

As the theatrical market waxes and wanes and the television business has become more unpredictable, it makes sense that studios like Sony increasingly look to diversify and attract fans in new ways.

After all, people have a lot of things they can do with their time and money. And after a period of slow returns since the pandemic, they’ve increasingly been coming back to in-person activities. To keep loyal fans in the fold, studios need to give them more ways to interact with the stories and entertainment they love, or they’ll move on.

Betting on the experiences business isn’t new. Walt Disney Co. makes the majority of its operating income not from its theatrical movies or streaming service, but from its theme parks and cruise line division. Last year, Universal opened Epic Universe, a major investment in its Orlando theme park resort that indicates the importance of this business for the company and owner Comcast.

But not every company wants or needs to start a theme park business. For one, it’s expensive. And for a studio like Sony, which doesn’t have a lot of kid-focused franchises, it doesn’t really make sense.

As a result, some are getting into the experiences space in more specific and limited ways, such as studio tours or branded attractions.

For Sony, that’s meant building a business around these in-person offerings that align more with its adult-leaning audiences. Lionsgate has a “John Wick Experience” in Las Vegas, while Warner Bros., among other things, recently debuted “Harry Potter: A Hogwarts Express Adventure” train event at the Southern California Railway Museum in Perris. (Universal licenses Harry Potter from Warner Bros. for inclusion in its parks.)

For most studios without a major theme park presence, this kind of location-based entertainment is still likely a relatively small part of their corporate revenue, potentially less than 1%, said Dennis Spiegel, founder and chief executive of the International Theme Park Services, Inc. consulting firm. But what these experiences do is help lengthen the life of a franchise by keeping licensing revenue flowing and keeping brands relevant between film releases, he said.

“Hollywood increasingly sees it as an essential part of maximizing the lifetime value of its intellectual property,” he wrote in an email. “In many ways, we have seen how these experiences have become as much of a marketing engine as they are a profit center.”

As for the Cinerama Dome, don’t take it as a sign that Sony is looking to build out an exhibition empire. The studio is looking for only special and selective deals like the dome, Ahuja said, and there are no plans to add more L.A. exhibition locations.

Stuff We Wrote

Film shoots

Number of the week

Christopher Nolan’s “The Odyssey” continued its dominance at the box office in its second outing with a three-day domestic haul of $90 million, down only 27% from its debut weekend.

Internationally, the Universal Pictures film raked in $137.6 million for a worldwide total of $652 million.

The big box office performance came as an unauthorized copy of the film leaked online over the weekend. The studio said it “immediately initiated takedown protocols” once it became aware of theillegal posting on X and “will pursue all appropriate remedies to protect our content and intellectual property rights.” The post was viewed more than 2.1 million times before a takedown notice replaced the copy of the film.

What I’m watching

I did not expect Amazon MGM Studios’ “The Sheep Detectives” to deliver a profound message on death and grieving when I sat down to watch it with a friend, but those talking ovine sleuths really got to me.

Paramount Skydance Chief Executive David Ellison isn’t waving a white flag.

After Paramount agreed Friday to delay its proposed merger with Warner Bros. Discovery to battle a stiffer-than-anticipated antitrust challenge from California Atty. Gen. Rob Bonta and 11 other state attorneys general, Ellison is resetting expectations. In a Monday memo to employees, Ellison wrote that he still believes his mammoth merger will be consummated in the coming months.

Paramount stock has lost about 20% of its value since the beginning of July amid concerns that the company will have to shoulder higher costs to get its $111-billion Warner Bros. acquisition across the finish line. Friday’s agreement with the state attorneys general to delay the merger’s close until after an antitrust trial, which will likely be held in 2027, also was unsettling to shareholders and some employees.

Paramount Skydance shares closed at $8.03, down 2.19% Monday afternoon.

“Let me be clear: we remain highly confident that this transaction does not pose any legal issues, and we will complete it and bring these two companies together,” Ellison wrote in the memo shared with media outlets.

Paramount’s internal teams and Warner Bros. have been diligently working to lay the groundwork for the two rival companies to integrate their operations. The rush had been on because Ellison wanted to close the deal this week — or at least by the end of September — to avoid a higher payout to Warner shareholders.

However, Paramount suspended such ambitions on Friday, agreeing to delay the merger until after a trial to litigate the merits of the antitrust case brought by Bonta and the other Democrats. Oregon, Washington, Colorado, Nevada, New Mexico, New Jersey and New York are among the states joining California in the fight.

The Writers Guild of America separately sued this month, alleging the merger would harm writers. Over the weekend, SAG-AFTRA announced that it supports the state attorneys general as they try to beat back the merger.

“Our members have every right to expect that the government will do thorough regulatory oversight when a deal of this magnitude takes place,” SAG-AFTRA President Sean Astin said in a statement.

“The workers in this industry should not have to rely on promises and aspirational statements,” he added. “This isn’t a conversation about shareholder value, it’s about the survival of the entertainment business in America.”

Teamsters already have spoken out against the deal.

Bonta and fellow attorneys general from Democrat-led states have argued the deal would violate the century-old Clayton Antitrust Act in three markets: wide-release theatrical films, potential blockbuster movies and cable television channel concentration.

U.S. District Judge Araceli Martínez-Olguín, who is overseeing the antitrust suit filed by Bonta two weeks ago, wrote in an order last week that the plaintiff states had presented “compelling evidence” that the proposed merger may violate U.S. antitrust law.

California Atty. Gen. Rob Bonta is leading an effort of 12 state attorneys general attempting to block Paramount Skydance’s $111-billion takeover of Warner Bros. Discovery.

(Genaro Molina / Los Angeles Times)

Paramount disputes that. The firm, controlled by the Larry Ellison family, has pointed to regulatory approvals it has already garnered, including from the U.S. Department of Justice, which found its acquisition of Warner Bros. Discovery would not harm competition.

The deal also won clearances from regulators representing 65 jurisdictions, including Australia, China, the European Commission, Germany, France, Spain and Canada. Paramount has pointed to those approvals as proof that the law is on its side.

In his memo, Ellison said delaying the deal until after a trial before Martínez-Olguín made sense.

“We believe this is the right path because the facts and the law are on our side, and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail,” Ellison wrote.

BuzzFeed is cutting roughly 35% of its workforce in its first major restructuring since media mogul Byron Allen bought a majority stake in the firm two months ago.

The layoffs, outlined in a Securities and Exchange Commission filing on Monday, will affect about 180 staff and contract positions across BuzzFeed and its sister brands HuffPost and Tasty.

“We’ve been actively managing costs for some time, working through scenarios to save as many jobs as possible,” BuzzFeed’s leadership team said in the memo. “Unfortunately, the elimination of certain roles is still required.”

The company, which maintains a Hollywood office, said the changes are necessary to “put our business on a path to profitable and sustainable growth.”

This restructuring comes after the millennial-focused media company, best known for quirky video content and online quizzes, sold a majority stake to Allen in May in exchange for $20 million in cash and a $100 million promissory note. Allen also became chairman and chief executive of the company.

Through the restructuring, BuzzFeed’s leaders said, the company will aim to grow its audience and bolster its positon in free streaming content.

The BuzzFeed purchase is the latest in a series of business moves Allen has made in recent years to build his entertainment empire. The former stand-up comedian recently purchased a portion of CBS’s late-night block earlier this year, taking over the time slot for the 2026-2027 season. The slot once belonged to “The Late Show with Stephen Colbert,” which was canceled last year and aired its final episode in May.

Allen’s company holds a slate of network-affiliate stations and owns the Weather Channel network. The company bought a 10.7% stake in cable channel Starz for $25 million in March.

Allen could not be reached for a comment on the new layoffs at BuzzFeed.

In its own statement, BuzzFeed said “We are extremely fortunate that Byron has enormous confidence in our management team and moved very quickly to reposition this company and unlock its value.”

BuzzFeed was founded in 2006. The website became known as a pop culture hub, where readers could indulge in the latest celebrity gossip or discover a unique cooking recipe. But over the years, the company has declined and faced mounting financial struggles. BuzzFeed reported a $15-million net loss in the first quarter of the year. The company generated $31.6 million in revenue, a 12.4% decline compared to the year-ago period. Ad revenue fell nearly 20% year-over-year to $17.1 million. However, content revenue grew roughly 69% to $7.5 million. The company is expected to release its second-quarter results Aug. 4.

Times Staff Writers Meg James and Stacy Perman contributed to this report.

As performers protest and studios sue in their war on artificial intelligence, the entertainment industry is deepening its dependence on it.

Although few places are better than Hollywood at crafting a narrative and concealing what happens off-frame, a Los Angeles Times survey of job postings sheds light on what is happening offstage.

Among hundreds of job postings in late June, more than one in 10 was likely connected to AI. The top studios’ public postings suggest they have been recruiting people to build AI tools. They are also recruiting teams to defend their intellectual property against unauthorized AI use.

“There are plenty of studios that are hiring [for AI] but never talk about it in public,” said Yoland Yan, a co-founder of ComfyUI, a company that helps studios juggle different AI tools.

Companies have been hesitant to detail how they use generative AI in film production — partly because they are concerned about consumer and union backlash.

The Walt Disney Studios complex on May 3 in Burbank.

(Eric Thayer/Los Angeles Times)

Some in Hollywood described AI use as the new cosmetic surgery, where everyone knows it is happening, but few will admit to it.

Recent want ads show Amazon MGM Studios trying to find a principal AI executive and Walt Disney Studios advertising for a production innovation technologist job.

“What you’re seeing in those job postings is that adoption is already happening,” said Bryn Mooser, chief executive of Asteria, an AI film studio.

Netflix recently posted a job that didn’t exist a year ago.

The streamer was hiring for the role of “Manager, Generative Workflows,” a job to help integrate more AI into Netflix films. It promised hands-on experience with the cutting-edge technology.

“The industry is flooded with speculative GenAI roadmaps, but few are battle-tested in production,” the post said, referring to generative AI. The post said the role will work on introducing AI into Netflix’s slate of films being released in the U.S. and Canada.

Although some companies may be shy about sharing their AI plans, big stars who don’t have to answer to others have been more open about their embrace of the new technology for storytelling.

An exterior view of the Netflix sign at Netflix on Vine in Hollywood in 2025.

(Allen J. Schaben/Los Angeles Times)

Rejecting AI is like picking a horse and buggy over a car, said “Star Wars” creator George Lucas.

“Artificial intelligence means it’s much easier for us to make movies,” he told a trade magazine earlier this year. “There’s nothing you can do about it. That’s progress. It’s the future.”

Some in Hollywood have a softer stance on artificial intelligence, with studios cutting deals with AI companies, and filmmakers like Martin Scorsese backing AI companies.

Ben Affleck launched an AI film tech company then sold it to Netflix for half a billion dollars.

When launching InterPositive, Affleck said he wanted to keep “storytelling human” by building AI tools that could fix lighting, generate missing shots and other things while “keeping creative decisions in the hands of artists.”

The Times’ survey turned up two senior InterPositive roles to update the programming to apply AI to visual effects .

The Culver Studios on Feb. 12 in Culver City.

(Kayla Bartkowski/Los Angeles Times)

To gauge what is happening behind the scenes, The Times used Claude Code to build a scraper to identify job postings at Disney, Universal, Paramount, Warner Bros., Sony, Netflix and Amazon MGM. It found around 250 film studio job postings that were still public as of late June. Around 30 of those seemed to be connected to AI.

Disney, Netflix and Amazon had job postings that were about using AI on the creative side of the business. Universal, Paramount, Warner Bros. and Sony had job ads suggesting they were also using AI but for marketing, distribution and audience analytics.

The postings suggest the Disney, Netflix and Amazon studios are building repeatable AI workflows for visual effects, animation, sound and dubbing. The companies also seem to be building in-house teams to develop custom generative-AI models, while also using third-party software.

None of the jobs advertised were to create AI that wrote scripts or created AI actors.

Disney’s ten or so AI jobs showed the century-old studio building out its AI research and production muscle, while protecting its vault of beloved characters.

Mouse House is hiring PhD-level talent to study “computer graphics and AI” for Pixar and Disney films, people to “bridge the gap between research and practical studio application.”

Industrial Light & Magic, the Disney-owned visual effects shop, was searching for supervisors to “explore emerging technologies (including AI/Machine Learning)” to develop new production workflows.

The company’s audio post-production unit, Skywalker Sound, seemed to be recruiting to build proprietary AI models for soundtracks, voice separation, and voice transfer, the process of taking a speaker’s tone and pitch, and applying it to new content.

Disney was also hiring to defend itself. Three of its jobs were for “content security” to assess AI tools and guard against piracy, watermarking and rights-protection work.

The company’s public posture has so far been pursuing lawsuits against AI companies for inappropriate use of copyrighted material, and it pulled out of its plans to invest $1 billion in an equity investment deal with OpenAI.

Netflix’s posts suggested it is bringing more AI to the creative side of its business.

Netflix’s senior director of creative innovation, Girish Balakrishnan, outlined at the Runway AI film festival how AI was used to create soccer fans in “Brazil ’70” and establish shots for fight scenes in “Glory.”

Amazon, an early adopter, was hiring a principal AI executive to drive AI-tool adoption across production, plus roles in operations automation and LLM content classification, the listings revealed.

The Seattle-based streamer has been the most aggressive AI adopter in studios, and commissioned three AI animation series through its GenAI creator fund in May. Amazon has also bankrolled a Manhattan Beach production services company, Innovative Dream.

Even as studios build bigger AI teams, many in the industry are resisting, and some film fans are concerned.

The actors’ guild SAG-AFTRA in June ratified a new four-year contract with special protections against synthetic performers, and the union has backed a national bill designed to protect individuals from unauthorized, AI-generated digital replicas.

Studios have met with the union twice a year since 2023 to provide a confidential report on their AI-related activities. The studios tell the union they aren’t yet using AI that would entirely replace humans, said a person familiar with the discussions.

The union says it has no evidence that generative AI is being used to create performances, and the studios are supposed to notify the union if that happens.

Actors, writers, production staff and movie fans are still resistant to the overuse of AI and defining when and where it is acceptable, so studios are treading lightly, said AI film studio CEO Mooser.

“It’s been really a challenging thing to adopt both socially, ethically and legally, but we are seeing more adoption of it than we’ve ever seen before,” he said.

Tech scion David Ellison for months projected confidence that his blockbuster Hollywood merger was on a glide path to completion.

His media company Paramount Skydance’s pitch early this year was that its proposed $111-billion acquisition of rival Warner Bros. Discovery could easily clear regulatory hurdles — unlike Netflix’s competing bid.

Ellison has heavyweights in his corner: his billionaire father Larry Ellison, co-founder of software giant Oracle, is bankrolling the deal, and President Trump is eager for the Ellison family to own CNN and other Warner assets, including HBO and the Burbank film and TV studios behind “Batman,” Harry Potter, Wile E. Coyote, and “The Pitt.”

“We could technically close [the deal] tomorrow,” Ellison told business new channel CNBC during a March interview. “There is nothing in this transaction that trips anything that would create cause for concern.”

But Paramount made a dramatic retreat Friday after two weeks of legal setbacks. The firm had been aiming to close the deal by September but agreed to table its takeover — perhaps until next spring — to allow a fiercer than expected challenge from California Atty. General Rob Bonta and 11 other Democrat state attorneys general to advance to trial before an Oakland-based federal judge.

The state prosecutors allege Paramount’s proposed merger with Warner Bros. violates a century-old antitrust law by giving the combined company too much heft in theatrical movie distribution and cable television.

The delay could saddle Paramount, the smallest of the major media companies, with substantial legal fees and hundreds of millions of dollars in added deal costs. In February, Paramount offered Warner investors a sweetener, so-called “ticking fees,” to win the auction.

Those fees, which begin accruing in October, will cost Paramount an extra $7 million a day — until the purchase is finalized. And if Paramount fails to close the merger, it would owe Warner Bros. Discovery a $7-billion breakup fee.

“Anyone who thinks they know how this deal ends should think again,” Forrester Research analyst Mike Proulx said in a statement. “This deal may still close or it may not. … The path to either outcome just got longer, messier, and likely more expensive.”

Paramount now must strengthen its case for a high-stakes trial while fortifying Paramount’s existing businesses and holding together a coalition of financiers, which includes the royal families of Saudi Arabia, Abu Dhabi and Qatar which jointly agreed to contribute $24 billion for equity stakes in the combined company.

Paramount reversed course after U.S. District Judge Araceli Martínez-Olguín dealt the company a blow on Monday when she temporarily blocked Paramount from finalizing the acquisition until mid-August. Looming was a key Aug. 3 hearing for the judge to determine whether the moratorium should be extended.

Paramount was concerned the judge would block the deal for the foreseeable future.

“They saw the writing on the wall,” Bonta said in an interview.

Columbia Law School business professor Eric Talley added: “This doesn’t constitute Paramount Skydance coming out and waving a big white flag — but it is a small white flag of surrender.”

Paramount, in a statement, said heading straight to trial would prove advantageous.

“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators,” Paramount said. “We look forward to proving our case at trial.”

Last week, the Writers Guild of America separately filed a lawsuit seeking to stop the merger, alleging that writers would encounter less work and lower pay should Paramount buy Warner Bros.

Now the merger won’t close until after a resolution in the litigation or by June 1, 2027, whichever date comes first.

“This is what we’ve been asking for from the start,” Bonta said. “We just wanted the court to have sufficient time to review our case without the threat of the companies merging.”

Ellison, through a Paramount spokesperson, declined an interview request.

The delay brings a different set of challenges, Talley said, including pushing the date of the takeover until after November’s pivotal mid-term elections when control of Congress might change hands.

“That itself could be disruptive,” Talley said. “Suppose we get a flip of the House of Representatives or the Senate, then we may see testimony in Congress.”

Prominent Democrats, including Sens. Cory Booker (D-N.J.), Elizabeth Warren (D-Mass.) and Adam Schiff (D-Burbank) have expressed alarm over the potential consolidation, which would shrink the number of legacy film studios and bring CNN in addition to CBS News under Ellison control.

Attempts to get Ellison to testify in Congress have fallen short. The Paramount chief declined an invitation to appear before the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights in February, as well as a subsequent request from Booker to appear during an April spotlight hearing.

“To what extent was the rush to get the deal done related to the midterms, and what press coverage was going to look like in the upcoming election season?” Talley asked. “CNN is not a huge money-making asset but it is a prominent asset of Warner Brothers Discovery.”

On Friday night, Trump extolled his friendship with the Ellison family during the White House Correspondents Assn. dinner while also criticizing prominent CNN anchors.

David Ellison is “going to make, I think, fantastic changes and keep some of the great stuff going,” Trump said.

CBS News has been roiled since shortly after the Ellisons acquired Paramount in August, and installed Bari Weiss as editor in chief of CBS News. She has overseen a series of controversial moves, including shaking up the evening news and sacking several “60 Minutes” correspondents.

Paramount scored one victory: the European Commission gave its blessing for the merger to go forward in the European countries it represents. The company now has gained clearances from more than 60 jurisdictions, including from the U.S. Justice Department, which found the merger would likely boost competition — not harm it.

Now, Paramount’s biggest obstacle is winning the case against Bonta and the other state attorneys general.

The states plan to request a trial in 2027, after the two sides conduct months of discovery to prepare their cases.

“We want to take depositions of employees. We want to take depositions of customers and competitors in these marketplaces that are impacted [and] we want documents,” Bonta said.

“We want to depose their experts and probe and test their experts’ opinions,” he said. “That all takes time.”

Bonta and the other state attorneys sidestepped the political landscape in making their lawsuit arguments.

“This is just a straight-up meat-and-potatoes antitrust case,” Bonta said. “The main point here is that antitrust enforcement is important because monopolies that lessen competition hurt everyday people.

“Once we have a trial, we’re going to win,” Bonta said. “So we think and we hope there will never be a merger.”

Paramount Skydance has notched a needed win as it continues to pursue its $111-billion deal to buy Warner Bros. Discovery.

On Wednesday, the European Commission gave its consent, allowing tech scion David Ellison’s industry-reshaping merger to move forward in the countries that make up the European Union.

Europe joins 64 other regulatory entities that have either approved the deal or chosen not to challenge it, Paramount said in a statement.

“These clearances recognize that the combination of Paramount and WBD will enhance consumer choice and enable a creative-first company to invest in more projects and bring stories to audiences worldwide,” Paramount said. “It will create a scaled media and entertainment company capable of competing with the tech companies that have come to dominate the industry.”

European regulators added just one condition: Paramount must end a partnership with Universal Pictures to share distribution of movies in Europe. Beyond that, regulators concluded that even with the proposed Paramount-Warner consolidation there were enough producers to avoid competitive harms.

“The Commission found that, at film production level, enough film studios remain as competitors,” the European Commission said in a statement. “These include other major US studios like Disney, NBC Universal … and Sony, along with smaller US studios such as Amazon MGM, A24 and Lionsgate, as well as European studios.”

But the merger would result in a “high concentration” of film distribution, the commission said, so Paramount would have 13 months to end its joint venture, United International Pictures, which distributes Paramount and Universal films to cinema owners in Europe.

Paramount must not “directly or indirectly … enter into any agreement or understanding with Universal to jointly co-distribute films” in the European countries for 10 years, the commission said.

Despite early concerns about potential dominance in the children’s television market, Paramount will not be required to divest Cartoon Network, a Warner asset, because of its ownership of Nickelodeon.

“The Commission found that streaming platforms offering children’s content will continue to act as a competitive constraint on the merged entity’s TV channels,” the agency said.

The European Commission joins regulators in Australia, Brazil, Canada, China, Saudi Arabia, Serbia and South Africa that have found the deal would not crush competition in their respective markets. Britain’s Competition and Markets Authority is still investigating the merger’s impacts.

Paramount secured the approval of the U.S. Justice Department last month. The company was hoping to close its blockbuster acquisition of Warner Bros., which owns HBO, CNN and the Burbank studios behind such popular characters as Batman, Superman, Harry Potter, Scooby-Doo, by the end of September to avoid a larger payout to Warner Bros. Discovery shareholders.

The European Commission’s approval came two days after Ellison’s firm was dealt a substantial setback.

A federal judge in Oakland on Monday issued a temporary restraining order preventing Paramount from finalizing the acquisition for at least 14 days as that antitrust case heats up. The decision came after 12 state attorneys general, led by California Atty. Gen. Rob Bonta, filed a lawsuit last week alleging the merger would violate U.S. antitrust rules.

District Judge Araceli Martínez-Olguín scheduled an Aug. 3 hearing to determine whether a longer-term pause is warranted. The states are expected to seek a preliminary injunction, which would tie up Paramount’s merger for months.

Paramount, in its statement, noted the European Commission’s conclusions “directly refute key assumptions that underpin the state AGs’ complaint seeking to block the transaction,” including whether big-budget or blockbuster films should be considered a market.

Wednesday’s approval “marks another significant milestone in bringing Paramount and Warner Bros. Discovery together,” Makan Delrahim, Paramount’s chief legal officer said in the statement. “We appreciate the Commission’s constructive engagement and thorough analysis throughout its review.”

Deal critic Alvaro Bedoya, a former Federal Trade Commission member who is now a senior adviser at the American Economic Liberties Project, offered a conflicting view.

“This is not remotely over. The United States is not Europe,” Bedoya said in a statement.

The Writers Guild of America joined the legal fray last week by filing its own antitrust complaint against Paramount, alleging the proposed union of two of Hollywood’s biggest studios would lead to fewer jobs and lower pay for writers. The WGA is also seeking an injunction.

The 37-page lawsuit filed by the state attorneys general alleges that Paramount’s proposed takeover — the largest Hollywood deal in decades — would violate the U.S. Clayton Antitrust Act, a century-old law to prevent mergers that weaken competition and raise costs for consumers.

In her order granting the states’ request for a temporary restraining order, Martínez-Olguín wrote: “The Transaction would also be difficult, if not impossible, to unwind if permitted to proceed given the anticipated consolidation of operations, sharing of business-sensitive information, and potential termination or reassignment of employees.”

Paramount faces a potential $7 billion payment to Warner Bros. should the company fail to close the transaction by next summer.