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New surveillance footage and other evidence from Southern California Edison confirms that a century-old, idle transmission line that the utility failed to remove ignited last year’s deadly Eaton wildfire, lawyers for insurers said in a court filing.

Video obtained from a surveillance camera at Gerrish Swim & Tennis Club in Pasadena shows two bright flashes occurring in the location of the tower holding the idle line at 6:11 p.m. on Jan. 7, 2025.

The flashes correspond to the time that Edison recorded two faults, three seconds apart, on another transmission line more than five miles away, the lawyers said in the filing, citing new data provided by the utility.

Soon after the faults, residents nearby recorded videos of a fire burning at the base of the tower, which is known as M16T1.

“Southern California Edison has spent the last sixteen months attempting to forestall the inevitable legal consequences of razing a large swath of the communities of Altadena and Pasadena to the ground,” the lawyers wrote in the filing.

“The Eaton Fire could not have occurred if SCE had simply disassembled and removed Structure M16T1,” the lawyers added.

The lawyers filing the May 18 motion represent property insurers that paid tens of millions of dollars to residents who lost their homes. Their motion asks the judge to order a judgment in the insurers’ favor that would make Edison liable for the damage under inverse condemnation, a legal doctrine in the state constitution.

Courts have ruled that the doctrine requires private utilities such as Edison to pay for property they destroy, even if they haven’t been found to have acted negligently.

Kathleen Dunleavy, a spokeswoman for Edison, said the company did not learn about the existence of the swim club video until the lawyers submitted it in court with their filing.

“It’s very disappointing and inappropriate that this video was not produced in discovery,” she said. “We hope that video has been turned over to the appropriate authorities.”

Dunleavy said the company believes the lawyers’ motion “is wrong on the facts and the law.”

“We’ll respond more fully in our own court filing,” she said.

Attorneys for the insurers did not respond to requests for comment.

In a February 2025 letter to state regulators, Edison said it had detected a single fault on a line more than five miles away from Altadena about 6:11 p.m. on the night the fire ignited. It said the fault caused a brief surge of electricity on its four live transmission lines in Eaton Canyon.

The company said in the letter that it was looking into whether the power surge could have caused electricity to jump to the idle line that runs parallel to the live wires through a process called induction.

Pedro Pizarro, chief executive of Edison International, later said that a leading theory of the fire’s ignition was that the idle line became energized briefly through induction, sparking the fire.

At the same time, the company has not accepted blame for the fire, saying repeatedly that its own confidential investigation into the cause, as well as a separate inquiry by Los Angeles County and state fire officials, is continuing.

According to the court filing, evidence obtained by the lawyers shows that the company stopped using the transmission line in 1971 and designated it as “out-of-service.”

“The declaration of Out of Service shall only be used when the line … or piece of equipment is expected to remain permanently out of service,” Edison stated in an internal document known as a system operating bulletin, according to the filing.

Edison executives told The Times last year that they left the line in place because they believed it might be needed in the future.

“We have these inactive lines still available because there is a reasonable chance we’re going to use them in the future,” Shinjini Menon, Edison’s senior vice president of system planning and engineering, said then.

Dunleavy said Friday that the idle lines are kept in place for a variety of reasons, including to preserve the right of way Edison had obtained to construct them and to support future needs for more electricity as the state aims to meet its clean energy goals.

Last year, The Times reported that state regulators, knowing old electric lines posed hazards, proposed a rule in 2001 that would have forced Edison and other utilities to remove idle lines unless they could prove they would use them in the future.

Under pressure from Edison and the other companies, the rule was weakened to allow utilities to keep the unused lines in place until executives decided they were “permanently abandoned.”

In their May 18 filing, the lawyers said Edison executives had known about the risk of induction for more than 100 years. They cited a 1923 contract between Edison and Pacific Electric Railway Co. that said that “leakage of electricity or induction from or between” conductors was an inherent risk of operating multiple electrical circuits in proximity.

“That’s why SCE grounds idle lines and inspects them,” Dunleavy said of the risk.

Copies of Edison’s fault records from that night, its operating bulletin and thousands of other documents, including depositions, are sealed from public view under a protective order that Edison and lawyers for the victims asked the judge to approve last year.

The L.A. County district attorney is investigating whether Edison should be criminally prosecuted for its actions in the fire, the company said in an investor filing this year.

The fire killed at least 19 people and left thousands of families homeless.

A hearing on the lawyers’ motion is scheduled for Aug. 11 in L.A. County Superior Court.

Edison has offered to compensate victims of the fire who give up their right to sue the utility.

The company said last week that it had so far received more than 3,500 claims from about 10,000 people. It said it had extended nearly 1,900 offers to those people, totaling more than $650 million.

Many victims have refused the offers, saying they don’t fully cover their losses from the devastating blaze.

Edison has told its investors it expects to actually pay little or nothing for the fire because of a 2019 state law. The company anticipates that it will be reimbursed for its payments to victims by a $21-billion fund created by the law known as
Assembly Bill 1054.

The law shields utilities from the damages of fires sparked by their equipment as long as they follow certain requirements, including submitting a plan to state regulators for reducing the risk that their equipment sparks fires. Regulators review the plan and track whether the utilities are making progress in reducing the fire risk.

Since 2019, Edison has spent billions of dollars on making its lines safer, including by undergrounding them and installing insulated wires. Those costs continue to raise customer electric bills.

In the last 10 years, Edison’s rates increased by 101%, according to an April report by the public advocates office at the California Public Utilities Commission.

Despite the spending, Edison’s electric lines sparked more fires in 2024 than in 2019. The company blamed the increase on erratic weather that created more dried vegetation.

Since its creation more than a century ago, the Los Angeles Bureau of Street Lighting has been in the lamppost business and little else.

But in recent months, the little-known city agency has found itself pulled into a fierce debate over L.A.’s relationship with Flock Safety, a surveillance technology company that has been criticized for supplying data used to enable the Trump administration’s immigration crackdown.

In L.A., Flock operates dozens of automated license plate readers, which allow authorities to scan for vehicles that have been reported stolen or are registered to known fugitives, tracking their movements throughout the city.

The devices are often mounted on municipal light poles, which makes the Bureau of Street Lighting responsible for their installation.

Reports that Flock has shared license plate data with federal authorities, including U.S. Immigration and Customs Enforcement, have prompted dozens of mostly smaller cities across the country to end their relationship with the company. But in L.A. it still has found willing customers, including the LAPD.

Hundreds of emails obtained by The Times through public records requests reveal how LAPD boosters, homeowner associations and elected officials have engaged in a months-long campaign to pressure the Bureau of Street Lighting to speed up installations of the plate readers.

Flock, headquartered in Atlanta, said that it contracts with roughly 5,000 U.S. law enforcement agencies nationwide, and that its technology complies with a California law that limits what information can be shared with federal authorities. A company spokesperson said that Flock’s technology is “built around transparency, accountability, and local control.”

“Our customers own and control their data, which is deleted after 30 days by default,” the spokesperson, MoMo Zhou, said in a statement to The Times. “Our platform includes safeguards like audit trails to help ensure accountability at every step. Every day, Flock supports communities across the country in addressing crime and locating missing people.”

The Bureau of Street Lighting, with 177 employees and a relatively modest budget of $49.4 million, would seem an unlikely player in the broader debate over police surveillance. It is primarily tasked with repairing and fortifying the city’s more than 210,000 streetlamps — a frequent target of copper wire thieves — and maintaining its network of electrical vehicle charging stations.

The push to put up more plate readers has come amid calls for greater transparency around the Los Angeles Police Department’s dealings with Flock. In March, the Police Commission asked the department to report back on what information the company’s scanners collect and share. In recent months, the commission declined to approve donations of Flock cameras.

Members of the Stop LAPD Spying Coalition held a news conference to express opposition to Flock Safety, a license plate reader, ahead of a Los Angeles Board of Police Commissioners meeting on March 3, 2026.

(Genaro Molina / Los Angeles Times)

The commission ordered its inspector general to conduct an audit of the LAPD’s use of license plate reader technology, with the findings expected to be released in the summer.

Recently, Councilmember Ysabel Jurado introduced a motion urging the commission to “refrain from entering into any new Memoranda of Understanding, Contracts, or other Agreements, or implement any pilot programs with Flock Safety or its affiliates.” LAPD officials said last month that the city attorney’s office has been working on drawing up a formal contract with Flock.

Behind the scenes, though, the pressure to work with Flock has been ratcheting up from other council offices and community groups.

When a representative from Councilmember Katy Yaroslavsky’s office emailed the streetlighting bureau urging speed, she received a response that said the installation process shouldn’t be rushed because some city light poles can’t support the weight of a Flock reader, which is normally powered by a solar panel.

“The last thing we need is to have a pole fall onto someone or something if there are high winds,” the bureau’s Clinton Tsurui wrote in the June 4, 2025, email.

In another exchange, Tsurui expressed frustration with a colleague who had offered what he thought was an overly optimistic timetable for installing new plate readers.

He wrote: “smh, promising things we can’t do is going to catch up with us one day.”

The Los Angeles Police Foundation, a nonprofit group that has long bankrolled equipment for the LAPD and offered other support, has criticized delays in installing the Flock devices. Last year, the foundation facilitated the donation of dozens of Flock cameras, most of which ended up in affluent neighborhoods on the city’s Westside and in the San Fernando Valley.

Records show that in May 2025, Dana Katz, the foundation’s executive director, reached out to the mayor’s office with a request to waive permit and rental fees associated with installing the new readers. Katz wrote in an email that the extra expense of around $2,000 per device were “cost prohibitive and detrimental to public safety.”

Katz also pointed out that in some places, there are no city-owned poles on which to mount the devices — but offered a possible solution.

“Flock has its own pole that has been accepted by the County of Los Angeles for these situations, and we would like the City to accept the use of them, too,” she wrote to Robert Clark, the city’s then-deputy mayor of public safety.

A few of L.A.’s historic streetlights stand outside the Bureau of Street Lighting’s office near Virgil Avenue and Santa Monica Boulevard.

(Jason Armond / Los Angeles Times)

Katz wrote Clark again on Aug. 6 to ask why officials were estimating a six-to-12-month wait for approval of new Flock readers on public property in the neighborhoods of Cheviot Hills and Brentwood Park, where there were no existing city poles to mount them. She noted that the county’s engineering department had already approved the company’s poles, and asked Clark whether there was a way for the city to “piggyback on these other entities’ approvals in order to speed this up so that these neighborhoods don’t have to wait so long for help in preventing these home invasions?”

In the following weeks, Katz’s emails took on an increasingly urgent tone. In one of her last messages, email records show, she told an aide she expected more help than the mayor’s office was offering.

“With all due respect, the answers you have provided are completely generic and do not provide any guidance and direction as to how we can expedite this process,” she wrote.

She added: “I’ve said it before, and I will say it again — these delays are harmful to public safety.”

A spokesperson for the mayor’s office told The Times that ultimately neither Clark nor the aide intervened on the Los Angeles Police Foundation’s behalf.

Email records show Flock’s courtship of the bureau dates at least to spring 2024, when the company agreed to donate two of its plate readers to help combat copper thefts.

Tsurui emailed LAPD Capt. Celina Robles to say that the company’s executives had requested an in-person meeting with the bureau and the LAPD “to discuss the benefits of this product and how it can benefit the city moving forward.”

On June 24, 2024, a lobbyist from the D.C. firm Modern Fortis emailed Bureau of Street Lighting Executive Director Miguel Sangalang seeking to “explore a public-private partnership” between Flock and the city. Sangalang took another meeting to discuss Flock a few months later with former City Councilmember Joe Buscaino, who after leaving City Hall had gone to work for Ballard Partners, a powerful Florida-based lobbying firm.

In January 2025, after wildfires devastated Pacific Palisades, Altadena and other areas, Flock stepped in again. The company agreed to donate more than 50 plate readers, free of charge for six months, to the wealthy Palisades area, where residents and law enforcement officials were on high alert about potential theft.

A Flock Safety automated license plate reader in Costa Mesa.

(Courtesy of the city of Costa Mesa)

In the days and weeks that followed, city and police officials continued to pepper the bureau about speeding up the approval process.

On Jan. 21, 2025, records show, Cmdr. Randall “Randy” Goddard of the LAPD’s Information Technology Bureau wrote streetlighting officials to say that the Palisades community “could use a big favor from your department.”

LAPD Chief Jim McDonnell “fully supports this and has been working with the City Attorney’s office to finalize the terms,” Goddard wrote.

Musicians have been left out of settlements between major record labels and AI companies, a new lawsuit alleges.

The American Federation of Musicians of the United States and Canada (AFM), which has 70,000 members, said Universal Music Group and Warner Music Group “received significant compensation” from the AI companies for past copyright violations and licensed “substantial” portions of their music catalogs to them, but haven’t shared that with the musicians.

UMG and WMG sued AI companies Udio and Suno in 2024, accusing them of copyright infringement. Both companies settled with Udio last year. In November, WMG announced a partnership with Suno, but Universal Music Group’s lawsuit against Suno is pending.

“While the Defendants protected their own interests and created a significant source of new revenue with the retrospective settlements and prospective licenses, they have refused to compensate the musicians whose work — created with their own instruments and through their talent, creativity, and hard work — is fed into AI machines for profit,” AFM said in its lawsuit, filed in U.S. District Court in New York on Friday.

AFM said it believes the AI settlements fall under the “new use” provision of its collective bargaining agreements, which requires music companies to notify the union of new licenses for purposes not covered by the contract and to compensate musicians, whose work was used to train AI models.

UMG and WMG said in statements that they are in negotiations on a collective bargaining agreement with AFM.

“Warner Music Group is growing the value of music by establishing guardrails and architecting a healthy AI ecosystem on behalf of artists everywhere,” the company said in a statement.

Universal Music Group said it will continue to work to resolve issues during the negotiations.

“Universal Music Group has been at the forefront of protecting the rights and advancing the interests of artists and songwriters in the age of AI — striking responsible AI licensing agreements to ensure they are compensated, leading the charge for legislation to further protect them and taking legal action against bad actors,” the company said in a statement.
“We expect to continue our strong working relationship with the AFM built on mutual respect for the talented musicians in our industry.”

AI has become more popular among consumers, dramatically changing the landscape in the entertainment industry. Many startups have popped up allowing users to type text prompts into AI systems to generate original songs, video clips and stories.

Some creatives say the AI tools help them brainstorm or illustrate bold ideas on a budget. But critics have raised concerns about whether AI systems are trained on copyrighted works without permission or payment to artists. Others are worried AI could eliminate their livelihoods.

Udio said it would create a new platform that would train on licensed and authorized music with artists having the ability to opt-in. Suno agreed to change its platform, launching new licensed models, and place download restrictions.

Bradford Auerbach, a partner at law firm OGC, said he expects to see more of these types of lawsuits filed by unions.

“You’ve got the unions always protecting the status quo, so you’ve got this invariable conflict of new technology coming in, and moving the cheese for a lot of people that were accustomed to having their business set up the way it was,” Auerbach said.

WhatsApp disrupted phishing attempts linked to NSO, blacklisted by the US for security concerns.

Meta has said it is ⁠filing a federal US ⁠court contempt order against Israeli spyware firm NSO Group for violating a permanent injunction that barred it from ever ⁠targeting WhatsApp and its users.

The company said on Monday that its WhatsApp messaging service disrupted new spear phishing attempts linked to NSO, an ⁠entity blacklisted by the United States government for engaging in activities that are contrary to national security or foreign policy interests.

These attempts were similar to previous “1-click phishing campaigns”, aimed to trick users into clicking ‌malicious links and direct them to external websites, Meta said in a blogpost.

A “1-click” is a type of cyberattack where a single click on a malicious link or attachment is sufficient to compromise a victim’s device or account, without requiring them to enter their credentials.

Meta said WhatsApp took down test accounts ⁠and groups created by NSO on its platform. ⁠NSO did not immediately respond to a Reuters request for comment.

Last year, a US court ordered NSO to stop targeting Meta’s WhatsApp, a development the spyware ⁠company warned could put it out of business.

While the ruling significantly reduced the punitive damages NSO ⁠owed Meta to $4m from an ⁠initial $167m, the injunction itself was seen as a substantial challenge for the company, which faces ongoing accusations of enabling human rights abuses through its Pegasus hacking tool.

Meta ‌said on Monday that last month it was joined by 12 prominent civil rights organisations, a coalition of security researchers, privacy advocates ‌and ‌digital rights experts, who filed their amicus briefs to fight NSO’s appeal against the permanent injunction.

A site of big changes, the Music Center has become farewell central. Alongside the Gustavo Dudamel hullabaloo at Walt Disney Concert Hall, James Conlon has begun his final appearances in the Dorothy Chandler Pavilion as music director for two decades of Los Angeles Opera, with his own signature form of enchantment in Mozart’s “Magic Flute.”

The silent-movie panache of Barrie Kosky’s production, which opened Saturday night at the Dorothy Chandler Pavilion and runs through June 21, is on its way to becoming a perennial. This is the third revival since L.A. Opera first staged it in 2013 — all four times with Conlon in the pit. The production operates like an operatic graphic novel and live animated film charmingly all in one. The scene is a giant movie screen broken up in sections and upon which is projected witty, fantastical background animation, while the characters are the live singers, dressed as though silent film stars.

The orchestra plays Mozart’s score as though it were, as orchestras did in the old days, accompanying a silent movie but to radically different effect. Fulgurous cinematic spectacle may immerse your attention, but the opera’s essence is transferred from the stage to the pit. The singers, meanwhile, function to an unusual degree as choreographed characters in a cartoon, leaving little opportunity for body language, allowing, instead, individual expression almost exclusively to their voices.

In Mozart’s opera, Tamino, a prince in a fairyland of mystic temples and mystifying gods, relies on his supernatural flute that turn sorrow into joy to get him out of jams. The genius of Kosky’s singularly musical production is that it magically makes the orchestra itself a compendious magic flute. It more than ever becomes an agent of delight.

That is where Conlon comes in. He has, while leading L.A. Opera for 20 seasons (half the company’s existence), served as an advocate for the core operatic repertory — notably Mozart, Verdi and Wagner — much of it little heard in our late-blooming former operatic desert. He has also been an international champion of his “recovered voices” project, salvaging the neglected operas of composers in the first half of the 20th century who were silenced by Nazi Germany.

“The Magic Flute,” one of the world’s two or three most popular operas, needs no such patronage. Written at the end of Mozart’s life as a popular entertainment, its a singspiel, or sung play. As a proto-Broadway musical operatic genre of spoken word and musical numbers, it appeals on all levels. The fairy-tale libretto is child-friendly. Mozart’s score is tune heaven.

The troublesome Queen of the Night dazzles with high notes that shoot out like daggers. The main lovers, Tamino and Pamina, are lyrical wonders. The comical bird-catcher, Papageno, is everyone’s darling. The domineering Sarastro, an all-powerful priest, bellows spiritual profundities. But if you start digging under the surface, deeper than the symbolic Freemasonry and all, you may never find bottom.

The opera begins with three ceremonial chords in the orchestra that signal a brief, sober introduction quickly undercut by an exhilarating fast-forwarding overture. Those three chords can be made to mean many things. Often, they come across as commands by an orchestra to sit up straight and pay attention. They may be dignified or downright quirky and playfully no big deal, just a here-we-go.

Conlon handles them as a sweet, perfectly tuned, almost amorous invitation to pleasure, implying this will be a genial, gracious, laid-back “Flute.” Among his accomplishments in L.A. has been to make the opera’s orchestra capable of producing just such velvety, flowing Mozart, as well as terse, tight theater.

Here, Conlon offers a lesson in the kind of leadership generally lacking in modern society, by simultaneously staying out of the way yet being at the essential center of things. Depth here is not announced, but the care of phrasing implies that there is more to everything Mozart is saying than first meets the ear, that, under it all, the “Magic Flute” is not fantasy but a spiritual lesson in morality.

Many in the cast, this revival, are young singers, not yet well known and new to the company. Sydney Mancasola and Miles Mykkanen, as Pamina and Tamino, are likable, lyric lovers. Kyle Miller catches Papageno’s vulnerable charm. Aigul Khismatullina, Queen of the Night, impresses with the silvery pricks of her high notes, while Kwangchul Youn’s Sarastro, unsteady in middle register, takes on weight at the bottom of his bass. Zhengyi Bai’s lustful Monostatos, disguised in the production as a hammy vampire, almost steals the show a time or two. The Three Ladies and Three Spirits provide vocal allure.

One of the evening’s most theatrical moments, though, came after the music stopped when what sounded like a gun interrupted curtain calls. But as if rescued by a magic flute, an instant of fear turned to joy, glittery gold graffiti filling the Chandler and celebrating Conlon.

The state of California is leading an effort to prepare a possible lawsuit that could thwart Paramount Skydance Corp.’s planned acquisition of Warner Bros. Discovery, a potential obstacle for the $111 billion deal.

The lawsuit, which could be filed as early as this month, would likely involve multiple states, according to a source familiar with the deliberations who was not authorized to comment publicly.

The litigation would seek to challenge the proposed merger on antitrust grounds, arguing it would thwart competition, lower wages and lead to widespread job losses.

“The Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time,” said California Atty. General Rob Bonta’s office in a statement.

In a statement, Paramount said it “will continue to fight against any attempt to derail a deal that plainly benefits consumers, creators and the industry as whole.”

“Opposing this deal means opposing expanded consumer choice, new opportunities for creators and workers, and greater competition throughout the creative ecosystem — the opposite of what antitrust law is meant to achieve,” the company added.

Warner Bros. Discovery shareholders in April approved the sale of the company to Paramount after Netflix dropped out of the auction.

Under Paramount Chairman David Ellison’s proposal, Warner investors would receive $31 a share, nearly four times the price of the company’s stock in April 2025. He also said he will keep both studios’ release schedules of 15 movies a year for a total of 30 films a year.

Nonetheless, Ellison and his team have vowed to make $6 billion in cuts following the merger, which requires regulatory approval. The combined company would have to contend with $79 billion in deal debt.

The prospect of substantial job cuts during a period of downsizing in Hollywood has ignited widespread opposition to the sale.

Thousands of people who work in the TV and film industry, including actor Joaquin Phoenix and director-writer-producer JJ Abrams signed an open letter opposing Paramount’s planned acquisition of WBD, saying it would lead to fewer production jobs and fewer choices for consumers. Others have also raised concerns about the impact it could have on content.

“The consequences would be felt nationwide, from destroying CNN the way that Ellisons have devastated CBS to entertainment industry job losses and consumers losing access to independent voices and a competitive market,” said Norm Eisen, executive chair of Democracy Defenders Fund, one of the groups that organized the open letter. “State attorneys general have both the authority and the responsibility to act when a transaction of this scale directly threatens the public’s interest, and I hope states across the country will join any effort to challenge this deal,” Eisen said in a statement.

The potential lawsuit, first reported by Bloomberg and Reuters, is being considered by other states, including New York and Colorado.

“Paramount and Warner Bros. haven’t cleared regulatory scrutiny,” Bonta told The Times in March. “My office has an open investigation into [the deal] and we intend to be vigorous in our review.”

Despite the potential obstacle, Raymond James equity analysts said in a note on Thursday that they “still believe the deal is likely to close.”

Last month, Paramount hired antitrust attorney Jeffrey Kessler to defend its planned acquisition of Warner Bros. Discovery. Kessler recently led a case for state attorney generals against concert promoter and ticketing firm Live Nation, resulting in a win for states, including California.

“We also think there are win/win solutions to be had particularly in California given exodus of production from CA in recent years and efforts to bring production back to Hollywood,” the analyst said in their note.

HAVANA — Spanish hotel chain Meliá has joined a growing list of companies with a long-standing presence in Cuba that are withdrawing or limiting their operations on the island after the U.S. announced new sanctions while upholding an oil embargo.

Meliá will cease operations at 15 of the 34 hotels it manages on the island, according to state website Cubadebate, dealing a blow to Cuba’s vital tourism sector, which has plummeted since its 2018 peak.

The report on Wednesday stated that Meliá’s decision was based on “a sense of corporate responsibility and external factors that have significantly affected the operation, legality and security of these establishments.”

The decision was announced May 26, just weeks after President Trump signed an executive order expanding sanctions against the island. Most of the sanctions targeted Grupo de Administración Empresarial S.A., a business conglomerate operated by the Cuban Revolutionary Armed Forces, with the U.S. asserting it was a threat to its national security.

The executive order freezes the assets of foreign companies, seizes their accounts in the United States and prohibits travel by their shareholders, investors and employees— virtually eliminating their activity in the U.S. financial system.

GAESA, a Cuban conglomerate created in the 1990s, owns a wide range of businesses, from car rentals and retail stores to transportation companies. It is Meliá’s partner in hotel management through one of its subsidiaries, Gaviota.

Meliá deals new blow to Cuba’s crumbling tourism sector

Meliá is one of Cuba’s most important partners in its vital tourism sector. Until its partial withdrawal, it operated some 14,000 rooms.

Spanish and Canadian firms are the biggest investors in Cuba’s hotel sector, noted Lee Schlenker, a research associate at the Quincy Institute’s Global South program, a Washington think tank.

“With the lack of international tourism, the fuel shortages, and just the broader decline since COVID…I’m sure that these companies will be rethinking their operations in Cuba with major implications for the people of Cuba, not just GAESA,” he said. “There are thousands of Cubans who work in these hotels.”

Several of the hotels that Meliá abandoned in idyllic destinations like the resorts of Varadero, Cayo Santa María and Jardines del Rey “were already closed and inactive due to energy problems and the drop in demand in Cuba,” according to Cubadebate.

Cuba’s government has blamed the U.S. energy blockade for prolonged blackouts, water shortages, supply problems, deficiencies in the healthcare system and disruptions in all aspects of daily life.

Those who work in Cuba’s crumbling tourism sector lamented Meliá’s announcement.

“It’s going to affect us, our families, and everyone involved in tourism. Our pay and income depend on this,” said Erich López, a driver of a green 1950s Dodge who has been driving for two decades to support his family.

For Carlos Luis Carbonel, a 62-year-old parking attendant who works in front of the giant Meliá Cohiba hotel in Havana, the situation “is going to be a blow.”

“This is terrible for everyone: for tour guides, for parking attendants, for hotel workers, for everyone,” he said.

Other major hotel chains including Canadian-owned Royalton and Spain’s Iberostar have limited or suspended operations in Cuba in the past week.

Tourism in Cuba, which reached a peak of 4.3 million visitors in 2019, saw a significant drop in the number of tourists arriving in the first quarter of this year, 48% lower than in the same period in 2025.

Only 298,000 tourists arrived in Cuba in January, February and March, compared to 573,300 international visitors during the same period last year, according to government data.

Cuba struggles to breathe

On Wednesday, the enormous and iconic sign of the Royalton Paseo del Prado hotel at the entrance of Old Havana was removed, as confirmed by The Associated Press during a visit. Meanwhile, the 500-room Iberostar Selection — also known as Tower K — the most modern and luxurious of the hotels slated to open in 2025, standing over 490 feet tall, has remained closed for days.

Airlines including World2Fly, Air France and Iberia have canceled flights to and from Cuba.

Also on Wednesday, Cuba’s Central Bank announced that Visa and MasterCard operations on the island would be suspended following the termination of relationships between foreign entities and FINCIMEX S.A., a Cuba-based agency affiliated with GAESA.

Last month, Canadian miner Sherritt International Corp. signed a non-binding agreement with Gillon Capital LLC, a family office linked to a former Trump adviser, to sell its stake in a mining business in Cuba.

In late January, Trump threatened tariffs on any country that sells or supplies oil to Cuba, as his administration pressures for a change in its political system and government. The move has deepened a crisis caused by seven decades of U.S. sanctions.

While U.S. and Cuban officials held talks earlier this year, tensions have risen. In late May, former President Raúl Castro was charged in a U.S. indictment for his alleged role in the downing of two civilian aircraft operated by Miami-based exiles in 1996 in Cuban waters.

Rodríguez writes for the Associated Press.

Three years ago, Mattel Inc. struck box-office gold — or rather, pink — with the billion-dollar success of “Barbie.”

In its first return to theaters since the female-forward phenomenon, the El Segundo toymaker is turning to the brawny He-Man for another box-office lift.

Its latest film, “Masters of the Universe,” opens this weekend, as Mattel looks to build on that previous success and continue extending its signature toy brands into the entertainment arena.

“The movie is very much in tune with culture,” said Mattel Chief Executive Ynon Kreiz. “Everything is much more contemporary relative to what was created more than 40 years ago, but it’s still very true to the origin story and to the DNA of the brand.”

The new film arrives at a pivotal time for Mattel, which is facing pressure from investors to grow its business. The maker of Hot Wheels, American Girl and Uno has recently confronted a challenging market for toys, beset by tariffs on goods produced overseas and weaker-than-expected demand for Barbie dolls and Fisher-Price preschool products.

Amid uncertainty in the toy market and the fallout from tariffs, Mattel’s net income dropped 25% to $398 million in 2025. And since the company announced disappointing holiday sales totals in February, its stock has dropped more than 30%, closing at $14.34 on Wednesday.

“Masters of the Universe” toys at Mattel headquarters in El Segundo.

(Myung J. Chun / Los Angeles Times)

The share price slide prompted investor Southeastern Asset Management to send a letter last month to Mattel leadership suggesting the toy maker should sell itself and go private. Southeastern manages about 4% of the company’s stock on behalf of its clients.

“The frustration among investors has been the fact that if you look at the business from 2021 through 2025 and even this year … the business really hasn’t grown,” said Eric Handler, a Roth Capital senior media and entertainment analyst, referring to Mattel. “This is a company that needed something fresh in the portfolio, and there’s a wide range of investments being made, of which ‘Masters of the Universe’ is one part.”

Kreiz pushed back on the idea that the company is not growing. In the fourth quarter of 2025, net sales were up 7% to $1.8 billion, though the result was not as strong as the company expected.

Mattel has spent $1.2 billion in the last three years to buy back shares, with an additional $1.5-billion share repurchase planned for the next three years.

“We’re investing in our own stock because we believe it is undervalued,” he told The Times in an interview at his office, which has floor-to-ceiling windows that give an expansive view of El Segundo. “We absolutely agree that the share price doesn’t reflect the progress that we’ve achieved over the last few years financially, operationally, our place in culture, the strength of our brands, and the continued expansion of the business. And more importantly, the potential that we have down the road.”

“Masters of the Universe” is a key variable in that equation.

Ynon Kreiz, chief executive of Mattel.

(Myung J. Chun / Los Angeles Times)

The movie, which had a budget of roughly $170 million, is expected to bring in $25 million to $35 million in the U.S. and Canada during its debut weekend. That’s a far cry from the $162-million opening haul of “Barbie,” but box-office analysts say that film captured the cultural zeitgeist in a way that’s hard to replicate.

The ‘80s-era “Masters of the Universe” is “a property that was famous with a certain group of fans, but it hasn’t had much of a pop culture presence,” said Shawn Robbins, who directs movie analytics at Fandango and founded the forecasting site Box Office Theory. The movie has notched a respectable 74% approval rating from critics on aggregator Rotten Tomatoes.

“There’s been so many callbacks to nostalgic franchises,” he said. “Some people are always on board for them, and maybe the positive reviews bring people in who were on the fence. But people are also ready for something fresh and new and exciting.”

Kreiz said he’s often asked how the company will match the success of “Barbie.”

“The answer is, we don’t need to match ‘Barbie’s’ success for movies to have a meaningful economic impact on the company,” he said. “Not every movie will be ‘Barbie.’ If we create quality content that people want to watch and create quality experiences that people are engaged with, good things happen, and these brands will resonate and will be here for years to come.”

While theatrical revenue is important, the measure of success for “Masters of the Universe” could also include its eventual reception on streaming platforms and, of course, toy sales, analysts said.

There are hundreds of products tied to the movie, from collectible action figures of Nicholas Galitzine’s He-Man and Camila Mendes’ Teela, to branded Uno decks, Legos, clothing and skateboards.

Skeletor from “Masters of the Universe.”

(Myung J. Chun / Los Angeles Times)

“For us, it’s a huge win already,” said Robbie Brenner, president of Mattel Studios and chief content officer, who also served as a producer on the film. “We have reinvigorated and relaunched this brand that has been around for decades … and done it in a way with just the best-in-class toys. Obviously that’s our bread and butter. And then to have made an epic, incredible movie … is a huge win.”

While Mattel does not yet have sales totals for its “Masters of the Universe” toys, executives said during an earnings call in late April that product sales were “growing double digits” amid strong customer demand, particularly from adults.

When Kreiz was named CEO in 2018, he saw the potential for Mattel to expand beyond toys. In an entertainment landscape dominated by known franchises and intellectual property, the former TV and media executive wanted to leverage the company’s IP in new ways to attract consumers.

Hence, Mattel has expanded into real-world experiences such as a Barbie pop-up at Coachella or a traveling Hot Wheels monster truck show. In February, the company fully acquired Mattel163 mobile game studio after buying out a stake held by Chinese tech firm NetEase. The studio has released games based on Uno, Skip-Bo and other Mattel intellectual property.

And on the film and television front, the Mattel Studios division now has 51 people — most of whom are based in El Segundo — focused on projects across platforms.

After “Masters of the Universe,” Mattel Studios plans to release a “Matchbox” streaming movie in October. The division has more than a dozen films in development that have been announced, including an American Girl movie with Paramount, Polly Pocket with Amazon MGM Studios, as well as a live-action Magic 8 Ball series from M. Night Shyamalan.

“The journey for the company was to evolve from being a toy manufacturer that was making items to become an IP company that is managing franchises,” Kreiz said. “It’s not that we’re not creating toys — it’s obviously a big part of our business — but the opportunity is to expand so much more than the physical product.”

“Masters of the Universe” was in development for years at several different studios before it was picked up by Amazon MGM.

That partnership stemmed from Mattel’s work on the “Barbie” movie with Courtenay Valenti, then president of production and development at Warner Bros. Pictures who is now head of film at Amazon MGM.

“Masters of the Universe” felt like a good property for Mattel to bet on because of its nostalgia factor and deep bench of colorful characters, from the green tiger Battle Cat to the heavily armored Ram Man and ever meme-able Skeletor, which the company hopes will attract new audiences, Brenner said.

The movie is directed by Travis Knight — chief executive of stop-motion studio Laika who also led the 2018 “Transformers” spin-off “Bumblebee” — who Brenner said “nailed” the narrative’s tone. (It didn’t hurt that Knight was already a fan of the franchise and had sported the He-Man haircut as a child.)

“It’s a property that’s kind of out there,” said Brenner, who grew up watching He-Man and his twin sister She-Ra. “It’s got all these crazy characters. But just riding that line between what is funny and kind of irreverent and then kind of heartfelt, that is a very hard thing to put in a blender and to get right.”

Oscar-winning director Martin Scorsese is joining the ranks of entertainment industry power players embracing generative AI.

Black Forest Labs, the German AI startup behind the text-to-image model Flux, announced Tuesday that Scorsese is joining the company as an advisor.

The company unveiled the collaboration on its website with a video of the auteur using Flux to storyboard scenes, which involves mocking up shots before filming.

“This conveys a cinematic intelligence,” he said in the video, discussing the program’s uses with Black Forest Labs co-founder and Chief Executive Robin Rombach and Creative Artists Agency co-founder Michael Ovitz. According to the New York Times, Ovitz, an investor in Black Forest Labs, helped bring Scorsese aboard, along with Rick Yorn, Scorsese’s talent manager, whose investment firm BroadLight Capital is also an investor.

In a statement, Scorsese emphasized the potential for AI to transform the storyboarding process.

“For 70 years, I’ve been creating my own storyboards. There’s always been this problem of how do you communicate what you see in your head to your cast and crew. There are some things you have to see and feel,” he said. “I’m interested in the intersection of technology and storytelling, and seeing how that can push the bounds of creativity to create deeper and richer experiences for audiences.”

Traditionally, storyboarding is done by hand or digital illustration through a collaboration between directors and storyboard artists.

Scorsese’s public espousal of this technology marks the latest shift in attitude about AI from powerful Hollywood creatives. Since generative AI became widely accessible in 2022, Hollywood has struggled to navigate its power to rapidly upend industry norms.

Scorsese is not the first decorated filmmaker to embrace AI. James Cameron, the Oscar-winning “Avatar” director, is on the board of directors for Stability AI, where Rombach worked before launching Black Forest Labs. In his keynote address at the AI on the Lot conference last week, director and screenwriter Paul Schrader expressed a mixture of admiration and caution toward the technology.

“AI does not create — it combines,” Shrader said. “If AI wants an idea, it has to go to where that idea already exists. Of course, you can make the argument that that’s all artists do anyway, and to a degree that’s a valid argument. But you still have to come up with something.”

Not everybody is on board with generative AI’s potential transformations. Guillermo del Toro and Seth Rogen spoke out against the technology at Cannes last month, and below-the-line wokers, screenwriters and actors have continued to express apprehension and even horror at the prospect of being replaced by generative AI.

Scorsese’s entry into the AI field might especially shock fans given his traditionalist approach to filmmaking. In 2019, he famously criticized Marvel movies, calling them “theme parks” and “not cinema.”

“It isn’t the cinema of human beings trying to convey emotional, psychological experiences to another human being,” he said in a 2019 interview with Empire Magazine.

Even if his filmmaking centers humanity, Scorsese’s partnership with Black Forest Labs demonstrates his willingness to incorporate non-human assistance.

“Remember, cinema is a young medium, only around 125 years old, so we have to be open to how it can evolve,” he said in the statement on Black Forest Labs’ website.

Stephen Curry is a free agent no more.

A sneaker free agent, that is.

The four-time NBA champion has spent his entire playing career with the Golden State Warriors and is under contract through the end of next season.

He has been playing without a shoe deal, however, since parting ways with Under Armour in November.

That won’t be the case when Curry starts his 18th NBA season in the fall. The man who holds the NBA record for most career three-pointers announced on Monday that his Curry Brand is teaming with Chinese sportswear and athletic equipment company Li-Ning for a partnership that is “bigger than a shoe deal” and “bigger than a signature series.”

”This is the partnership of a lifetime. The future of Curry Brand is with Li-Ning,” Curry wrote in a post announcing the deal on his Thirty Ink site. “I couldn’t be more proud to build a long-term vision with Li-Ning that will fuel Curry Brand for years to come and unlock the full potential of this company on a global scale.”

ESPN reports that the deal is for 10 years. Terms were not released.

Curry signed with Nike for the first four seasons of his career before switching to Under Armour in 2013. After announcing his sneaker free agency early in the 2025-26 season, Curry wore shoes from a variety of companies during warmups and games. In April, Curry auctioned off more than 70 pairs of those shoes through Sotheby’s, raising more than $1.7 million for his charitable foundation.

While many of his shoe choices had special significance — like when he honored Kobe and Gianna Bryant by warming up in Nike Kobe 6 Protro “Mambacita” sneakers — Curry also was doing his due diligence as a businessman.

“Throughout my sneaker free agency, I was impressed by the quality, comfort and performance of Li-Ning’s shoes,” Curry said. “It was during that time playing in Dwyane Wade and Jimmy Butler’s sneakers, that I knew that Li-Ning could be the right partner that can deliver on the innovation and design that I want Curry Brand to stand for.”

Li-Ning (the company) was founded by Li Ning — the Chinese gymnast who won six medals, including three gold, during the 1984 Los Angeles Olympics — in 1990. A handful of NBA players have signed with the company , starting with then-Cleveland Cavaliers guard Damon Jones in 2006 and also including former Clippers guard Baron Davis and future Hall of Famers Wade and Shaquille O’Neal.

In addition to Curry’s Golden State teammate Butler, other current NBA stars signed with Li-Ning include Atlanta’s C.J. McCollum and Washington’s D’Angelo Russell.

According to Curry, Li-Ning will open Curry Brand stores in the United States and China.

“We’ll be proudly building Curry Brand into a future leading company that will leave its mark in Basketball, in Golf and across the lifestyle space,” Curry wrote.

“We’ll aim to create game-changing products, launch elevated platforms and bring storytelling that will inspire young boys and girls around the globe. My hope is for young athletes to find the same purpose, joy and drive through sports that I’ve long enjoyed throughout this journey.”

At the AI on the Lot media conference last week in Culver City, speakers laid out a view of artificial intelligence that was very much complementary to human workers.

Artificial intelligence is a tool that must be wielded by humans, several said. The idea was to help skilled artists and production specialists do their jobs and experiment, others said.

Of course, to many in Hollywood, AI is not that simple.

Guardrails on its usage emerged as a central issue in the 2023 writers’ and actors’ strikes, and additional rules were added in the recent Screen Actors Guild-American Federation of Television and Radio Artists and Writers Guild of America contracts. There are still big questions about AI’s effect on jobs in the entertainment business, as well as copyright and ethical concerns.

Whether it’s good or bad or some combination of both, AI, in some form, is probably here to stay.

So, eight months ago Amazon MGM Studios opened an AI Studios division to start work on Project Nara, an AI production toolkit built on Amazon’s AWS cloud computing platform that could be used by teams of filmmakers. Project Nara is still in beta mode, and the company set up a GenAI Creators’ Fund to give filmmakers interested in using the toolkit financial support, while also giving the studio feedback.

The beta testers got eight weeks to produce an animated short and, out of those, the company greenlighted three animated series.

Shortly after the conference, filmmaker Jorge Gutierrez, whose stop-motion-style “Punky Duck” was chosen as one of the greenlighted series, pulled out after an online backlash over his use of AI.

“We respect Jorge’s decision, as well as his incredible talent, his voice and the world he created with ‘Punky Duck,’” an Amazon MGM Studios spokesperson said in a statement. “We continue to be excited about the innovative work moving forward at our studio and the GenAI Creators’ Fund.”

Before the flap over “Punky Duck,” I spoke with Albert Cheng, head of Amazon MGM Studios’ AI Studios, about the goal of the division, what’s next for AI and his belief that humans are at the center of creativity. The conversation has been edited for length and clarity.

Why was AI Studios formed?

AI Studios was started last fall because we wanted to learn how to leverage AI technology to build tools that would help enhance or redefine the workflows for film and TV production.

When you look at the horizon of what it takes to drive continued engagement of a global streaming service like Prime Video, we need more original programs. So if you can figure out how we take the same amount of money that we spend and be able to make more shows, that’s ultimately what we want, and we think AI is going to be a help to drive that.

With AI, now we’re looking at how does technology change the way we actually create our cinematic storytelling? It could mean that with AI, we will hear from a lot more voices. If we can actually get the biggest costs down, we will be able to have more voices, be able to take more risks and creative risks most of all.

There’s always concern about what does AI mean for jobs. We believe that it actually creates more jobs and different types of jobs. In fact, people with experience, plus the tools, become even more valuable in terms of their ability to produce excellent quality work. So it’s always about the human behind it.

You mentioned that some of these production crews had more than 100 people, but crews in the past would have been much larger. How do you respond to concerns about that?

You may have smaller crews, but we’ll do more of them [productions], and more in a short period of time. When you actually have smaller productions and you do more of them, you’re increasing your throughput. Your turnover rate of the available jobs is much faster, so your job totals are actually going to be bigger.

You spoke about the idea of AI filmmaking bringing jobs back to L.A. and expanding California’s production incentive eligibility to include AI-assisted filmmaking. Can you elaborate on that?

When you look at AI production, it can be done on a soundstage. We don’t need to go to London, we don’t need to go to other places.

We do have technology companies in California that are driving this, we have people here in the city that have experience, if given the AI tools, can produce great work. So, how can we not incentivize more companies to use our soundstages and finally make productions and make more of them?

Have you or anyone else at Amazon spoken with government officials about this idea of expanding the incentive criteria?

We’ve been talking to a number of bodies about whether it’s possible. The question is, who’s going to take the ball?

How much can you decrease a show’s production budget by using AI?

I think we can get a show to half the cost, [or] to almost a fifth of the cost.

What was the thinking behind the GenAI Creators’ Fund?

We wanted to provide a support and invest in creators who wanted to try it, and then also give us feedback.

We also wanted to show that storytelling is the thing that drives the content. It’s not the technology; the technology just enabled them to make it.

What is the biggest misconception of AI use in production?

There’s a narrative that AI can do so many things by itself, that you don’t need people. That’s absolutely not true. It’s just a technology, it can’t make decisions.

In order for something actually quality to be made, a person actually needs to be behind that, and that’s been proven over and over again. People are still responsible for the output.

Stuff We Wrote

Film shoots

Number of the week

Internet culture drove the box office over weekend, with A24’s “Backrooms” hauling in $81.4 million in the U.S. and Canada.

The $10-million horror flick, which stars Chiwetel Ejiofor as a furniture store owner who finds a mysterious portal in his basement, was directed by 20-year-old YouTuber Kane Parsons and is based on his online series of the same name. Worldwide, the film made nearly $118 million in its debut weekend.

Focus Features’ “Obsession” also had a big weekend with a 10% jump in domestic box-office revenue in its third outing. The horror movie, which had a production budget of less than $1 million, was directed by Curry Barker, who also built his reputation on YouTube.

Together, the two films highlight the growing power of YouTube — and online culture as a whole — on the big screen. They beat out franchise film “Star Wars: The Mandalorian and Grogu,” which dropped 69% from its debut last weekend to rank third at the box office.

What I’m watching

I’m just one episode away from finishing this season of “Bridgerton” on Netflix. While I liked that the show dived into the social class dynamics behind Benedict and Sophie’s romance, I have to say that I loved the secondary focus on Violet Bridgerton and Lord Anderson finding a second chance at love.

NEW YORK — American businesses big and small have started receiving tariff refunds after the U.S. Supreme Court ruled that President Trump lacked the constitutional authority to impose higher import taxes on goods from nearly every other country.

The process could grind to a halt, however, after the Trump administration said Friday that it intended to appeal a federal judge’s order to allow all companies that paid the illegal import taxes to seek refunds, not just the ones that filed lawsuits.

Until the Department of Justice informed the judge of its planned appeal, the refund system overseen by U.S. Customs and Border Protection had been working fairly smoothly. Refunds reached the bank accounts of the first successful applicants on May 12, about three weeks after American importers and their customs brokers could start submitting claims through an online system, according to CBP.

Applications for refunds totaling $85 billion — more than half of the $166 billion the agency estimated the government owes to companies that paid the illegal tariffs on imported goods — were accepted for processing as of May 22, CBP reported in a legal filing earlier in the week. It said it had so far directed the Treasury Department to issue $20.6 billion in refunds.

The administration revealed its appeal preparations while objecting to a demand by Judge Richard K. Eaton for CBP Commissioner Rodney Scott to appear in the U.S. Court of International Trade to answer questions about how long it would take to repay all 330,000 importers that might be eligible for refunds. The judge has scheduled a June 9 hearing on why he shouldn’t require the government do whatever it takes to speed up the process.

Justice Department lawyers asked Eaton to allow one or two of Scott’s deputies to appear in his place, arguing that as a high-ranking presidential appointee, the CBP chief could not be compelled to testify in court. They also argued that Eaton exceeded his own authority when he determined in March that the Supreme Court’s ruling entitled “all importers of record’’ to refunds.

“For that reason, defendants intend to appeal the court’s universal injunction,” the lawyers wrote, adding that CBP would continue to move “as quickly as it can to process refunds in a phased approach” for businesses that filed some 485 pending trade court complaints to assert their rights to refunds.

In a terse reply Friday, Eaton said he needed to hear directly from Scott whether the government would return all of the money it collected between when Trump imposed what he called “reciprocal” tariffs on goods from most countries in April 2025 and when the Supreme Court struck them down in late February.

“This case involves $166 billion,” the judge wrote. “It is undisputed that the remedy for this unlawful collection is for the United States government to refund the unlawfully collected duties.”

Some national retail chains said they planned to use their tariff refunds to lower customer prices on some items. Walmart Chief Financial Officer John David Rainey told analysts last week that the company would implement price cuts even though the maximum refund it might be eligible for represented less than half of 1% of Walmart’s $483 billion in annual U.S. sales.

Some smaller companies told the Associated Press that the partial refunds they’ve received so far would go toward paying remaining or future tariffs, reducing debt or just keeping the lights on after more than a year of uncertainty and additional import costs.

Jay Foreman, chief executive of toy company Basic Fun, said he received about $450,000, or 7% of his total claim, over two consecutive days this month. He took the initial repayment as a positive sign but said that after having less than $10,000 refunded since then, the process seemed like a “total slow roll.”

“It’s time to release the funds back into the economy, especially given how much we and others need these funds to support our businesses and fund our operations,” Foreman said.

Anderson writes for the Associated Press.

A Delaware Court of Chancery judge delivered a blow to wrestling impresario Vince McMahon and other World Wrestling Entertainment officials earlier this week.

Judge J. Travis Laster, vice chancellor of the Delaware Court of Chancery, issued sanctions for “spoliation of evidence” in the shareholder lawsuit over the 2023 merger between Ultimate Fighting Championship and WWE.

Laster ruled on Tuesday that WWE executives destroyed evidence by using the auto-delete setting on the messaging app Signal, enabling potentially relevant communications to be deleted.

The ruling means the court will operate under the assumption that five potentially damaging statements are true while allowing the defendants to rebut them.

The statements, according to the ruling, include that McMahon’s decision on the merger was “influenced” by Endeavor Executive Chairman Ari Emanuel’s “promise” to provide him with a continued role at the company and to indemnify him and provide legal support as federal investigators were looking into claims of alleged sexual misconduct.

McMahon pursued a deal with Endeavor in 2022 before WWE initiated its strategic review process, and both McMahon and then-WWE President Nick Khan worked with The Raine Group, a strategic financial advisor, “to steer the process to Endeavor and away from other potential bidders,” the ruling states.

In September 2023, entertainment giant Endeavor, the parent company of UFC, acquired WWE and merged the two sports entities to form a new, publicly traded company, TKO Group Holdings, in a deal worth $21.4 billion.

A month later, a group of shareholders filed suit against McMahon and other company officials in Delaware Chancery Court, claiming McMahon orchestrated a “sham sale process.”

Representatives for McMahon, WWE and TKO were not immediately available for comment.

According to the suit, McMahon, WWE’s controlling shareholder, turned down higher offers and excluded other bidders who would have ousted him and instead chose a deal that favored Endeavor’s Emanuel, a “close friend and longtime ally,” enabling McMahon to continue running WWE and shielding him from federal investigations related to a raft of sexual misconduct claims.

The complaint also alleges that the $21.4-billion deal undervalued the company and was “far below the offers” WWE’s board could have received from other interested parties had they “made any effort to negotiate in good faith.”

The litigation is related to the 2022 investigation by WWE’s board that found that McMahon made at least $14.6 million in payments between 2006 and 2022 for “alleged misconduct.” McMahon has denied claims of misconduct.

The settlements were made to women, including WWE employees, who alleged that McMahon initiated unwanted sexual contact and coerced women into performing sexual acts on him. In one case, first reported by the Wall Street Journal, a woman claimed that McMahon sent her unsolicited nude photos of himself.

McMahon’s alleged misconduct became the subject of ongoing investigations by the Securities and Exchange Commission and the U.S. Department of Justice.

“I am confident that the government’s investigation will be resolved without any findings of wrongdoing,” McMahon said in a statement to The Times in 2023.

Last January, the SEC announced it had settled charges against McMahon alleging he had violated federal securities laws by failing to disclose a pair of settlement agreements to WWE worth $10.5 million.

McMahon agreed to pay more than $1.7 million in a civil penalty and in reimbursement to WWE, without admitting or denying the agency’s findings. Federal prosecutors also have dropped their criminal investigation.

In January 2024, McMahon resigned as executive chairman of the board of TKO Group, one day after a former WWE employee, Janel Grant, sued the company, McMahon and former head of talent relations John Laurinaitis, alleging sexual assault, trafficking and emotional abuse.

Grant claimed that McMahon agreed to pay her $3 million in exchange for her silence.

The shareholder trial is set to begin on June 8. McMahon, Emanuel, Khan, TKO President Mark Shapiro, and WWE Chief Content Officer Paul “Triple H” Levesque are expected to testify.

May 28 (UPI) — Nicaragua’s government said it will return mining company BHMB Mining to its original owners after the operation was confiscated in September 2025 and later transferred to Chinese firms.

The announcement came from Nicaragua’s Attorney General’s Office and follows what local media and analysts described as efforts by President Daniel Ortega and Vice President Rosario Murillo’s government to avoid additional sanctions from the Trump administration.

According to the government, officials reached an agreement with BHMB Inc., a U.S.-British company incorporated in Florida, allowing operations to resume at the BHMB Palacaguina processing plant in northern Nicaragua.

“As a result of a process of dialogue and coordination carried out in an atmosphere of cooperation and mutual respect, an understanding has been reached aimed at the orderly and secure normalization and operational reactivation of the BHMB Palacaguina plant,” the government said in a statement.

The government added that the specific terms and conditions of the agreement remain confidential.

Nicaraguan newspaper La Prensa previously reported that authorities seized the facilities in September 2025. The company operated a gold processing plant in northern Nicaragua valued at more than $80 million under a 10-year operating permit.

The owners said that after the expropriation, Nicaraguan authorities transferred the plant to Chinese companies Zhong Fu Development and Santa Rita Mining.

Environmental and Indigenous rights advocate Amaru Ruiz wrote on X that “the Ortega-Murillo regime announces an agreement with BHMB Mining Nicaragua to free itself from the complaint filed before ICSID over the expropriation suffered by the company.”

Ruiz later told Nicaraguan outlet 100% Noticias that the decision represented an unusual reversal by the government. He said the administration “feared losing the case before ICSID” because of growing international pressure and the possibility of economic sanctions.

The International Centre for Settlement of Investment Disputes, or ICSID, is a World Bank institution that resolves legal disputes between sovereign states and foreign investors.

On April 16, the U.S. Treasury Department’s Office of Foreign Assets Control announced sanctions targeting individuals and entities tied to Nicaragua’s gold sector.

According to the Treasury Department, the sanctions responded to what it described as the Ortega-Murillo government’s use of the gold industry as a major source of financing for repression and corrupt enrichment of the ruling family.

Nicaraguan journalist Miguel Mendoza said the government’s decision to return the plant to BHMB appeared aimed at avoiding political and economic pressure from the U.S. Congress.

U.S. lawmakers are scheduled to hold a hearing June 4 titled “Confronting the Ortega-Murillo Totalitarian Regime,” focused on democratic backsliding in Nicaragua and rising tensions with Washington.

Mendoza added that BHMB shareholder Baruch Rapoport maintains relationships with figures in the Trump administration, including diplomat Richard Grenell, who served as Trump’s special envoy for Venezuela.

According to Mendoza, those ties may have contributed to recent U.S. sanctions against seven Nicaraguan mining companies, targeting one of the government’s most profitable sectors.

It’s been a big year for Seth Rogen’s Point Grey Pictures.

The 15-year-old production company founded by Rogen, his childhood friend and longtime collaborator Evan Goldberg and producer James Weaver is coming off a huge awards season for its comedy, “The Studio.”

The Apple TV series, which simultaneously pokes fun at the institutions of Hollywood while also peeling back some of the industry’s mystery, is now the most-awarded new comedy in TV history.

“The Studio” has won 13 Emmys, a BAFTA TV award in the international category, two Golden Globes and three Critics Choice awards. It’s currently filming its second season, with most details still under wraps.

I spoke with Rogen, Goldberg and Weaver about the success of the show, which primarily films on the Warner Bros. lot, and what’s next for Point Grey.

On all those awards?

“We’ve never, literally, won any awards before this, so I by no means expected this,” Rogen said, with a chuckle. “I hoped people would creatively recognize that we were really swinging for the fences, but awards were not really something that I was thinking that much about.”

In the show, the Canadian actor and comedian plays beleaguered movie studio head Matt Remick, who must balance the art of filmmaking with the economics of the business. In a nod to Hollywood’s pull toward intellectual property, one storyline focuses on the studio embarking on a movie about the Kool-Aid Man, which Rogen’s character only reluctantly agrees to pursue.

It’s not all about the money

“To me, what is interesting, and what people don’t seem to think about Hollywood, is that the people involved in it actually care about movies, even the ones who make bad ones, even the ones who make choices that stop good ones from being made,” Rogen said. “If you really just wanted to make money, there are much easier ways to make money where you don’t have to deal with people like me.”

He also noted that there’s a role for movies such as the fictional Kool-Aid flick.

“You could argue it’s the Kool-Aids of the world that keep theaters open,” Rogen said. “It’s our fake Kool-Aid movie that allows smaller movies to exist and allows theaters to take risks on smaller movies.”

Remembering comedy

“The Studio” also stemmed from a desire to make a pure comedy, despite the tough time comedies have had recently in the marketplace.

“We just all agreed that we wanted to make something that was just funny,” Goldberg told me. “It just felt like the world stopped making those, and we just wanted to make something that when you tuned in, was just absolutely hilarious.”

A serious L.A. business

Los Angeles-based Point Grey, which has 15 employees, is named for the Canadian school where Rogen and Goldberg met (the first project they wrote together, which became 2007’s “Superbad,” was based on their experiences there). Despite their comedic reputations, the more serious-sounding company name was deliberate so it could be used with any kind of project.

In fact, the company got its start with the Joseph Gordon-Levitt-led dramedy “50/50” about a 20-something who learns he has cancer. Over the years, Point Grey’s projects have spanned genres, including supernatural series “Preacher,” 2016’s “Sausage Party,” the satirical superhero show “The Boys” and biographical mini-series “Pam and Tommy.”

A Point Grey project is “genuinely original” and “daring,” said Weaver, Rogen’s former assistant who now serves as president of the company, which has a first-look film deal with Universal Pictures and a first-look TV deal with Lionsgate. He declined to discuss financials but said the company is profitable.

“We’ve managed to be really productive in terms of the amount of things that we’ve made, and we try to be smart about how we run our financials,” Weaver said. “The company is doing quite well.”

Point Grey is in production on “Teenage Mutant Ninja Turtles: Mutant Mayhem”; just wrapped a romantic comedy for Amazon MGM Studios starring Cameron Diaz and Stephen Merchant; and recently screened an animated film at Cannes called “Tangles” that’s based on a graphic novel about Alzheimer’s.

The production company may eventually expand into video games (“We love video games,” Goldberg told me), and plan to continue to navigate the changes in Hollywood, which is reeling from a continued drought in local production that my colleague Stacy Perman and I wrote about recently.

“Personally, I feel like people are very fatalistic about the trajectory of the industry, but it’s not like the industry is going down, the industry is just changing,” Goldberg said. “We just are very flexible and embrace the change, and hopefully in doing so, we don’t get left behind.”

Stuff We Wrote

Number of the week

After 1,810 episodes as the host of “The Late Show,” Stephen Colbert signed off for the final time Thursday.

CBS has said it canceled Colbert because the show was losing $40 million a year as viewers have increasingly migrated away from late-night viewing in the streaming era.

But many in the TV business are skeptical of the claim and believe Skydance wanted to silence Colbert, a frequent Trump critic, to pave the way for its deal last year to acquire parent network Paramount. (The Federal Communications Commission’s approval of the transaction came days after the show’s cancellation was announced.)

My colleague, Stephen Battaglio, has written about what the future of late-night TV talk shows will now look like.

What I’m watching

I watched the “Survivor 50” finale Wednesday with some friends, despite only watching two episodes this season (or ever). It was fun seeing the drama unfold, though I was, like everyone else, shocked at that “last twist” of Jeff Probst accidentally spoiling who lost in the final fire-making challenge.

Spotify Technology SA announced several new initiatives — from concert ticket perks to a major AI-generated music licensing deal — that the Swedish audio streaming company said will help fuel growth over the next four years.

At the first investor day led by new co-chief executives Gustav Söderström and Alex Norström, Spotify outlined a vision revolving around features that will allow people to personalize their listening experience, whether with music, podcasts, audiobooks or working out. Investors liked what they heard, pushing Spotify shares up as much as 18% over the course of the presentation.

Spotify addressed one of Wall Street’s biggest concerns about artificial intelligence by announcing a major new licensing deal with Universal Music Group NV. The agreement will let Spotify launch a tool to let fans create covers and remixes of their favorite songs from artists and songwriters who opt in. Powered by generative AI, the tool will be available as a paid add-on for Spotify Premium users. It will open up additional revenue streams for Spotify and create a new source of income for artists and songwriters on top of what they already earn on the platform, according to the companies.

Spotify has been working with the music industry on ways to harness the power and consumer interest in AI without violating artists’ rights. Last October, the company announced an agreement with the biggest record labels to use AI in a “responsible way,” but didn’t specify at the time what those tools would look like.

“This era of generation doesn’t need to threaten the future of music,” said Charlie Hellman, Spotify’s head of music. “Because we built the system legal, trusted and aligned, we can make sure that the value flows back to the people who created it.”

In another big announcement, the company laid out plans to work with Live Nation Entertainment Inc. to offer Spotify subscribers the option to purchase two tickets to their favorite star’s concert before they go on sale to the general public. The move could help resolve some of the issues fans have had in beating ticket resellers to face-value tickets, while encouraging customers to stay on as subscribers even as Spotify raises monthly fees.

Fans have long complained about the ticketing process for live performances, which often pit people against bots and scalpers, leading to high prices and sold-out shows.

“It’s frustrating for fans,” said Rene Volker, head of live events. “It’s frustrating for artists too, who look out at a crowd and wonder, are the fans who built my career actually here?” The new “Reserved” perk is designed to relieve some of that tension. “No racing bots, no chasing around online for presale codes. Just two tickets held for you,” she said.

The presentations Thursday were designed to comfort investors and prove that Spotify can still innovate. Wall Street has been skeptical that the company can rein in costs while staying ahead of competitors, particularly as it relates to AI. Those concerns have weighed on shares this year, sending them down 25% through Wednesday’s close. While the company makes most of its money through subscriptions, the executives sought to reinforce the idea that they have other levers to pull in order to generate sales beyond monthly fees and that people are willing to spend more for certain features.

The company outlined its growth targets through 2030, including a compound annual growth rate in the mid teens, a gross margin of 35% to 40% and an operating margin above 20%. Spotify remains committed to its long-term goal of 1 billion subscribers, $100 billion in revenue and over 40% in gross margin, the executives said.

Spotify sees its podcast and audiobook features as complementary to music and said the combination of the multiple verticals has helped broaden its community and convert users from free listeners to paid subscribers. Today, more than 500 million people have streamed a video podcast on Spotify, up nearly 50% from a year ago. And in just a few years, Spotify has captured about 20% of the audiobooks market in the US, executives said. People who use all three verticals — music, podcasts and audiobooks — are engaging with Spotify almost every day of the month, according to the company.

Giving people the tools to personalize their listening experience helps keep them in Spotify’s universe — creating what executives described as the “all day user.”

Personal Podcasts, for example, lets people write a prompt in the Spotify app and AI will create a unique podcast in response.

“We see this much more as a daily brief and a recommendation engine than something that would replace you listening to one of your favorite podcasts,” Söderström said in an interview. He noted that 60% of users in mature markets for Spotify don’t yet listen to podcasts, so features like Personal Podcasts could get them to dive into the medium.

The company said its podcast business has been profitable for two years.

Spotify’s Audiobook+ tier gives listeners more than their allotted 15 hours of audiobook listening per month for an additional fee. It has 1 million subscribers and is on track to generate $100 million in annualized revenue, the company said. To capitalize on the demand, Spotify will start selling even more audiobook hours to super users. Additionally, it will allow podcasters to offer memberships, so subscribers can access special episodes and other content. Spotify will take an undisclosed slice of revenue from the memberships.

Carman writes for Bloomberg.

WASHINGTON — The Congressional Black Caucus on Tuesday called on major corporations across the U.S., including those that previously expressed support for voting rights and racial justice, to oppose redistricting efforts by Republican-led states that seek to eliminate majority-Black U.S. House districts.

In a letter sent to more than 250 companies, members of the Black Caucus urge them to condemn the redistricting efforts, which the lawmakers describe as “coordinated efforts to silence Black voices at the ballot box.” Some of the companies had co-signed their own message to Congress five years ago urging lawmakers to pass the John Lewis Voting Rights Act, a Democratic proposal to restore and update the Voting Rights Act.

That 2021 coalition, Business for Voting Rights, was backed by many of the country’s most valuable and influential companies, including Apple, Amazon, Google, Meta, Microsoft, Tesla, Salesforce, Target, PayPal, Intel and Starbucks.

Tuesday’s letter is the latest effort by the Congressional Black Caucus and its allies to gather support for preventing more Republican-led states from redrawing their legislative maps in ways that would dilute Black political representation. Several states have moved to eliminate congressional districts represented by Black Democratic lawmakers after a U.S. Supreme Court ruling last month that severely weakened a key provision of the Voting Rights Act.

“Corporations that have profited from Black consumers, relied on Black workers, and amassed wealth in part from Black communities cannot look away while Black political power is dismantled in plain sight,” Rep. Yvette Clarke, chair of the Black Caucus, said in an interview.

Clarke described the letter as “putting corporate America on notice,” but she said the caucus was not seeking an adversarial relationship with corporations. Among those receiving Tuesday’s letter were companies based overseas that have a significant presence in the U.S.

The caucus last week called for Black athletes to boycott public universities in states that are gerrymandering their congressional maps to eliminate districts held by Black lawmakers. The 59-member Congressional Black Caucus consists entirely of Democrats, including more than a third from Southern states.

Some lawmakers have said mass protests and federal legislation might be necessary to undo the efforts underway in Republican-led states. Any new federal voting rights law would almost certainly require Democrats to secure majorities in both chambers of Congress and win the presidency.

It is unclear how companies will respond to the demands. The Associated Press was making efforts to contact them.

“Many companies that previously issued statements after the murder of George Floyd, pledged billions toward racial equity initiatives, and spoke forcefully in defense of democracy following January 6 now face a defining test of whether those commitments were rooted in principle or convenience,” the caucus’ letter states.

It also represents the latest instance of the caucus expressing frustrations with corporate America. A 2024 Black Caucus report noted that lawmakers were “troubled that some corporations that made pledges in 2020 have taken several steps in the opposite direction,” such as rolling back or failing to follow through on pledges to diversify their workforces.

“We understand who the occupant in the White House is and the reality of Republicans being in charge,” Democratic Rep. Steven Horsford of Nevada said of the caucus’ message. “But what corporate America also understands is that there will be a shift at some point.”

The letter calls on companies to publicly condemn the redistricting plans, meet with Black Caucus members to discuss corporate America’s role in protecting voting rights and disclose their political donations to Republican politicians in states that are redistricting their congressional maps.

President Trump last year kicked off the unusual mid-decade round of congressional redistricting when he pushed Texas lawmakers to redraw their maps in a way that would add Republican seats. Democratic-led California responded, but it has been mostly Republican states redrawing their lines since as the party tries to maintain its majority in the U.S. House during this year’s midterm elections.

The effort was supercharged by the Supreme Court decision, which allowed even more Republican states to redraw congressional maps that previously had protected minority communities.

Horsford, who chaired the Black Caucus during President Biden’s Democratic administration, said the caucus is demanding that companies “stand on the side of democracy, fairness and equal representation.”

“This is about power, who holds it and what it’s used for,” he said. “And when you’re diluting Black economic and political power, we need to know where these companies stand in this moment, and what side of history they’re on.”

Brown writes for the Associated Press.

As a radio professional who grew up aspiring to work at CBS News Radio, anchor Steve Kathan understood the weight of the words he wrote and recorded Friday on the final broadcast of “World News Roundup.”

“America’s longest running newscast signs off for the last time,” Kathan said in the small dimly lighted studio in the CBS Broadcast Center on Manhattan’s West Side. “It all began on March 13, 1938,” he said, referring to the iconic news program.

Kathan played a recording of Edward R. Morrow, the legendary CBS News journalist who delivered his first report on the debut of the program, saying “the best in radio reporting is yet to be — good night and good luck.”

“And goodbye,” Kathan added, ending the run of around 23,000 editions of the 10-minute signature broadcast, delivered from CBS’ radio network . A final news update was scheduled to run later Friday night.

CBS News Radio and its 26 employees became a victim of budget cuts across parent-company Paramount’s news division announced in March.

“A shift in radio station programming strategies, coupled with challenging economic realities, has made it impossible to continue the service,” the company said.

Privately, longtime insiders at CBS News say the division has struggled for years to find ways to financially turn around its radio business.

The unit was operating at a loss with monthly revenues recently falling as low as $67,000, according to a network executive not authorized to discuss the matter publicly. The service held on because it still had value in promoting CBS News and its journalism, reaching 20 million listeners a week.

Leadership over the years have put off the messy task of winding the radio business down due to its iconic status at the company. CBS News editor-in-chief Bari Weiss was reluctant to make the cuts as well, according to people inside the company familiar with her thinking. But with Paramount taking on substantial debt to acquire Warner Bros. Discovery, considerations of the division’s legacy are likely to matter less in ongoing efforts to reduce costs.

Kathan had heard rumblings about CBS getting out of radio going all the way back to its first ownership change in the 1980s when Larry Tisch acquired the company.

“Even though I’ve been here 39 years, the thought was someone’s going to decide to do it,” he said.

As television dominated the media landscape, CBS News Radio retained its role as what Kathan called “the background track of American history.”

As a child growing up in Connecticut, Kathan recalls watching Douglas Edwards, the “World News Roundup” evening anchor for two decades, doing TV news updates in between the soap operas his mother watched on CBS. After Kathan joined the network in 1987 as a writer and producer, he would see Edwards and other famous names from the division walking through the hallways of the broadcast center before doing his afternoon newscasts.

“Just the fact that you were working with them made you think and realize you had to up your game,” Kathan said. “You wanted the audience to trust you as much as it trusted them.”

“World News Roundup” rose to prominence during World War II, when Murrow and other CBS News correspondents delivered live reports from Europe.

Once TV supplanted radio as a source for scripted entertainment, news and information became the primary mission of CBS’ radio division that began in 1927. In 1967, the company converted its owned AM radio stations — including its Los Angeles outlet KNX — to an all-news format.

While the stations focused on local news, traffic, weather and sports, they also prominently featured CBS News Radio reports at the top of the hour and other features throughout the day.

Longtime listeners became familiar with Edwards, Dallas Townsend, Reid Collins, Richard C. Hottelet, Christopher Glenn and other CBS News veterans who brought national and world stories to listeners throughout the day, introduced by a five-note sounder that simulated a telegraph. Dan Rather and Walter Cronkite were heard daily with analysis.

The radio network developed a major star in Charles Osgood, who joined WCBS in New York as anchor. He went national in 1971 with a twice-daily segment called “The Osgood File.”

Osgood wrote two-minute reports in succinct prose delivered in his mellifluous tones. He occasionally offered commentary in verse, which earned him the title of poet-in-residence at CBS News.

Osgood’s popularity was rivaled only by ABC Radio personality Paul Harvey. CBS News even allowed him to read commercial copy to satisfy eager advertisers who wanted their product messages presented in his comforting voice. When Osgood became a host on the TV side in the 1990s on “CBS News Sunday Morning,” his sign-off remained “I’ll see you on the radio.” He filed his final “Osgood File” report in 2017.

Charles Osgood in the WCBS radio studio in New York on July 25, 1967.

(CBS Photo Archive/CBS)

CBS sold off its radio stations in 2017, but continued to produce and distribute its network programs as the business faced competition from digital media.

Dustin Gervais, technical operations manager for the network, said CBS News Radio struggled as more audio advertisers prefer digital content because of its effectiveness at targeting specific demographic groups. The shift is reflected in radio ad revenue, which dipped about 2% to $14.37 billion, according to media research firm Kagan. But the digital ad revenue portion of that pie continued to grow, topping $1.75 billion.

Charles Forelle, managing editor for CBS News, said the company plans to remain in the audio journalism business through podcasting and not straight newscasts.

“We have a whole bunch of different things in development that are less news reading and more other things,” he told The Times.

Not all of radio’s problems are related to digital.

Michael Socolow, a professor of communication and journalism at the University of Maine, notes that the industry troubles began in 1996 when deregulation loosened the limit on the number of stations a single entity can own. Buying sprees of outlets led to owners who became highly leveraged and less able to invest in programming, which put the squeeze on suppliers such as CBS News Radio.

“Radio was hollowed out by the corporations, before its utility to the American citizen ended,” Socolow said. “You can trace it to the Telecom Act of 1996.”

Some of the 26 employees at CBS News Radio who were severed from the company have found work at Worldwide News Network, a service launched by John Catsimatidis, the owner of New York’s top-rated talk station WABC. The company said the service, which begins Saturday, will deliver “hard news, breaking headlines, and fact-driven reporting to affiliates across the country.”

CBS News Radio’s biggest customer — the all-news stations owned by Audacy, including KNX — have already switched their network service to ABC News Audio.

Airbnb unveiled a new set of services for guests on Wednesday, adding car rentals, airport pickup and grocery delivery to its online marketplace that connects travelers with local hosts.

Customers can now get groceries delivered to their Airbnb through a partnership with Instacart and have a driver meet them at the airport with Airbnb’s Welcome Pickups. The app is also offering luggage storage in partnership with Bounce and will add in-app car rentals later this summer.

At the same time, Airbnb is ramping up its use of AI by adding AI-powered review summaries and lodging comparisons, the company said.

The company has been expanding beyond lodging since last year, when it introduced Airbnb Experiences & Services, giving guests the option to book private tours and chef-cooked meals through the app.

In an earnings call earlier this month, the company’s chief executive, Brian Chesky, said the company is at “the very, very beginning of how AI is going to change how we all do our jobs.”

The changes are coming in time for the 2026 FIFA World Cup, which will take place in 16 cities across the U.S., Mexico and Canada. The company said it is offering exclusive World Cup experiences, such as watch parties and access to stadiums.

“In terms of what we’ve seen in cumulative bookings heading into the event, the World Cup is slated to be the largest event in Airbnb’s history,” the company’s chief financial officer, Ellie Mertz, said on the earnings call.

Airbnb gained popularity for offering travelers unique and homey stays on other people’s property, but it added boutique hotel bookings to its platform late last year. The move had some customers questioning if the app was straying too far from its original purpose.

In its announcement this week, the company said it is partnering with more independent hotels in 20 top destinations, including New York, London and Singapore. On the earnings call, Chesky said hotels on Airbnb could become a multibillion-dollar revenue business.

The San Francisco-based company was founded in 2007 and gave homeowners the opportunity to earn money by renting out their space to travelers seeking something different from a hotel. Airbnb bookings can range from private bedrooms in a shared home to luxury mansions and yachts.

The company’s revenue grew 18% year over year to $2.7 billion in the first quarter, while net income increased slightly to $160 million. Airbnb’s new services and offerings could transform it from a home-sharing platform to a holistic travel marketplace, analysts said.

Shares of the company have increased by 14% over the last six months and fell by less than 1% on Thursday.

At this year’s festival to unveil our inaugural Cannes issue, I had to opportunity to sit down with Sony Pictures Classics co-founders and co-presidents Michael Barker and Tom Bernard and EVP of Acquisitions, Production and Business Affairs Dylan Leiner on the Main Stage at the Marché du Film to discuss the company’s festival strategy, bidding wars, artificial intelligence and more. Watch the full conversation and read edited excerpts below.

How much does the festival reception of a movie, the reviews coming out of a festival, the buzz around it, shape decisions that you’re making? Or is it just confirming what your gut already knows?

Leiner: I want to tell one story that speaks to that, which was at the first Berlin Film Festival we attended after COVID. I remember, in the same day, I ran into three international distributors who all asked if we had seen “The Teacher’s Lounge.” And I didn’t even know what the film was. It wasn’t on our radar, it wasn’t in competition. So we quickly saw “Teacher’s Lounge” and we acquired the film [which went on to be nominated for the 2024 international feature Oscar]. And that was one of the great values of an in-person festival, the ability very quickly to communicate with distributors, with tastemakers, with critics from around the world and get that kind of information. Gut, personal taste… It plays into it a lot, but then we need reassurance. And being at a festival and being in this fishbowl environment is really helpful for that.

For a lot of people, myself included, the mystique of a festival is often around the bidding war narratives: Who’s going to pick up what and what are they going to pay? I’m curious for your take on the first big acquisition of this year’s Cannes, A24 buying “Club Kid” for a reported $17 million.

Bernard: Throughout the years, there were companies [that would] maybe overpay, or they were going to bid to get this movie no matter what, because they were the headline in all the newspapers covering this festival. So in terms of a company that’s branding — which, A24 is one of the best in branding — I think that that had to do with a little bit of the cash that went up. … There’s a branding aspect in a lot of festivals for a movie that’s a hot movie that the press has decided to seize on.

Barker: Here’s a key to how we have survived. It’s different from the way you talk about it. When we acquire a movie, whether anyone else has offers, we try to block it out. And we have trained ourselves to not let that noise bother us. What is it worth to us? What do we think it’s going to do? Dylan runs these incredible models of what it’ll do on the low end, what it will do on the high end. And then you decide where you want to be.

Bernard: Or we think we can make it work.

Barker: But at no point do we sit around and worry about who else has a higher offer for the movie. Because I have to say, in very few instances, on the movies we buy, are we the higher offer. We just do the best we can, and if we lose it, we lose it.

Bernard: [French film producer] Serge Silberman, a sage of the past, he always said, “You never lose money on a movie you didn’t buy.”

That brings up a question that I had about “Nuremberg,” which was a real success. What you’re saying is, it performed in alignment with your expectations. Were there any lessons that you took away from that in terms of future projects that might come along?

Leiner: Yes, it performed in accordance with our expectations. What’s interesting about that film, we acquired it here last year. Nobody else was really interested in the movie. … So our challenge basically was to figure out how to convince the filmmaking team that, because it was a very expensive film, that we were the right company to acquire the film on the terms that we could afford and that we could make it work. And it was a very intense series of phone conversations, in-person meetings.

Bernard: We felt like we were auditioning to get married to somebody. We were never going to be able to pay to make their money back. It was a $40-million movie, and they were really sort of out there without anybody really looking at it. And we said, “Listen, sell it to us. We think it’s going to be a great success. We’ll make your movie way more valuable over the test of time.”

Barker: There are two types of movies that are being made and distributed. One are the big tentpole studio movies. It’s about winning the weekend theatrically. These are the theatrical-driven movies. And it’s all about making that huge budget back very quickly. But the other kind of film, which is why we are in business, is the evergreen. Every one of our films, we open it with the best marketing push we can. Yes, we try to get the highest box office. But what we know will happen, even if the box office ends up being less, we believe in these films as long-term players. And these films have really long tails. You look at movies like “Run Lola Run” or “Call Me By Your Name” or even “Living” … They have generated revenues to the filmmakers and to us that’s way beyond what the box office would have portended when it opened.

I would be curious, what areas of the filmmaking process or the film distribution process do you think AI is appropriate for use, that you’ve experimented with it, that you’re excited about its prospects? And where are your red lines, if you have any?

Barker: One of the people on our staff — we really love our young staff. One of them was writing a screenplay with AI, and told me they got certain rules on AI. And I’m listening to all these rules. You can’t have your main character die in a first scene. You can’t have your romantic female lead be totally unlikable, people aren’t going to go. I’m listening to this, and I said, “Have you ever seen ‘Sunset Boulevard?’” And she goes, “No, what is that?” I said, “Go watch that movie.” She came back and she was like, “Holy cow.” I said, “Billy Wilder sat down and made that up based on what he observed.” AI is not going to be able to do that.

Barnes & Noble was turning a page on the chain’s history of declining sales, but recent comments have stirred bad blood for the bookseller.

James Daunt, the chief executive credited with breathing new life into the retailer, is clarifying the store’s stance on stocking its shelves with AI-written books.

The controversy stems from Daunt’s Monday appearance on “Today” with Jenna Bush Hager. In a viral clip from the interview, Daunt said, “I have actually no problem selling any book, as long as it doesn’t masquerade or pretend to be something that it isn’t. So, as long as an AI-written book says it’s an AI-written book, then we will stock them.”

By Wednesday, thousands of calls to boycott the bookseller had flooded social media.

Kathlin Finn, a writer and former employee of the chain, posted on social media, writing, “Hey Barnes & Not Noble, I worked for you and have supported you, but your latest AI decision is extremely disappointing. I will not be shopping or promoting B&N unless you change your AI policy.”

Author Cristin Bishara wrote, “As an author this [is] the most depressing news. I’ve been saying for a long time that this was coming. People told me I was overreacting. And I had a feeling it would start with a cute round table at the front of a B&N.”

Another social media user added, “The Barnes & Noble CEO saying they’ll stock AI generated books as long as they’re labeled and aren’t ‘ripping off somebody else’ is wild considering all generative AI is ripping off someone else.”

Daunt told The Times that the wave of backlash is based on misinterpretations of what he said, and that only a “highly edited version” of what the bookseller “actually said” had been aired.

In an emailed statement, he said the bookseller does not sell AI books, “as far as we are aware.” Barnes & Noble “demand[s] that publishers label any books that are AI generated,” and the chain takes “active measures to exclude all AI generated books.”

Daunt further stated that Barnes & Noble “will sell AI generated books if there is clear demand” and not “ban reputable books published by reputable publishers, even if AI generated, should these be published, labeled and there be clear evidence of customer demand.”

He also said that the retailer thinks it’s “very unlikely” that there will be customer demand for AI-generated books or that reputable publishers will publish them.

“The argument is nuanced, and perhaps over nuanced, but there are important principles that have to be balanced and I believe we do so as sensibly and thoughtfully as is possible,” he said. “Book banning is a clear and present danger, so we are very careful with demands to ban any books” while also remaining vigilant “not to sell AI generated books that masquerade to be by real authors.”

Last year, Daunt spoke with BBC on the issue of AI in publishing and bookselling and said that there’s a huge proliferation of AI-generated content, and “most of it is not books that we should be selling.” He told the broadcaster that, as a bookseller, the company sells what publishers publish and that he’d be surprised by efforts to put forth an “AI-generated piece of nonsense” but that, ultimately, the decision on reading material would lie with the reader.

“We don’t dictate, and we don’t dictate around politics or any other particular issues around books,” he said. “We leave it up to the reader to decide.”

In June 2025, more than 70 authors issued a call to action to big-five publishers Penguin Random House, HarperCollins, Simon & Schuster, Hachette Book Group, and Macmillan, asking the companies to pledge that they will never release books that were created by machines. Authors Lauren Groff, R.F. Kuang, Emma Straub and Emily Henry were among the petitioners.

“At its simplest level, our job as artists is to respond to the human experience. But the art we make is a commodity, and our world wants things quickly, cheaply, and on demand,” the letter read.

“We are rushing toward a future where our novels, our biographies, our poems and our memoirs — our records of the human experience — are ‘written’ by artificial intelligence models that, by definition, cannot know what it is to be human. To bleed, or starve, or love. …

“Every time a prompt is entered into AI, the language that bot uses to respond was created in part through the synthesis of art that we, the undersigned, have spent our careers crafting. Taken without our consent, without payment, without even the courtesy of acknowledgment.”

In March, Hachette pulled “Shy Girl” from publication after widespread allegations that the horror novel appeared to be AI-generated and was swiftly scrubbed from Amazon and the Hachette website. The book’s author, Mia Ballard, denied that she had relied on AI to pen the book but said an acquaintance she had hired to edit the novel used AI.

“Hachette remains committed to protecting original creative expression and storytelling,” a Hachette spokeswoman said, per the New York Times.

Lupa Systems, the media and tech holding company owned by James Murdoch, is set to acquire nearly half of Vox Media.

As part of the deal, Murdoch’s company will own Vox Media’s podcast network, Vox.com and New York Magazine, once an asset of his father, industry giant Rupert Murdoch. Terms of the deal were not disclosed, but the price tag was reportedly over $300 million, the New York Times reported citing people familiar with the deal. The goal of the investment is to bring “influential journalists, top-rated podcasts, and digital brands with large social footprints” to Lupa and help grow its media portfolio, the company announced Wednesday.

“This acquisition aligns well with our existing holdings and investments and reflects both our interest in the forward edge of culture and our deep commitment to ambitious journalism and agenda-setting conversations,” Murdoch said in a statement.

The three new assets will function as a subsidiary of Lupa Systems and will keep the name Vox Media. The deal includes New York Magazine’s popular verticals like The Cut, Vulture and Intelligencer, as well as Vox’s most successful podcasts like “Today, Explained” and “Pivot with Kara Swisher and Scott Galloway.” Jim Bankoff, Vox Media’s current CEO, will continue to lead the company.

The other Vox Media properties, which Murdoch did not purchase, include websites like Eater, The Dodo and The Verge. These platforms will be run under an unnamed new company by the current president of Vox Media, Ryan Pauley.

This investment strengthens Lupa Systems’ position in the evolving media landscape. The business has other holdings including the parent company of Tribeca Film Festival, the owner of Art Basel, Robert DeNiro and Jane Rosenthal’s entertainment company Tribeca Enterprises, and Bodhi Tree Systems, an investment platform behind a popular Indian streaming service.

This is one of the largest deals Murdoch has closed since he and his family resolved a $3.3-billion dispute last year. The conflict centered on the future of the family’s media empire, which includes Fox News, The New York Post and The Wall Street Journal. In the settlement, James Murdoch received roughly $1 billion and his elder brother, Lachlan, assumed power over the family’s assets.

Before the legal blowout, Murdoch previously served as the chief executive of major global media companies like 21st Century Fox and Europe’s Sky Group.

The billionaire told the New York Times that, with this new acquisition, he didn’t want a “daily news business.” He wanted “longer-form, thoughtful journalism that can really speak to the culture.”