decline

CANNES, France — Greeting from the Croisette, where the 79th Cannes Film Festival is underway — and where the Envelope has its inaugural Cannes issue.

I’ve been hard at work since before the Oscars assigning and editing stories about the global film industry and this storied event’s role in it, albeit with an L.A. twist. And with this special edition of the newsletter, you too can be a part of the “Entourage,” at least vicariously. Read on for more highlights from the issue, and be sure to check out Amy Nicholson and Joshua Rothkopf’s conversation about the Cannes films they’re most excited to see before you block out your schedule.

Cover: Almodóvar, uncensored

(Shayan Asgharnia / For The Times)

You know you have a juicy interview on your hands when you wake up to it being aggregated by the trades, and I can’t really blame them: Columnist Glenn Whipp’s cover profile of Spanish auteur Pedro Almodóvar, in competition here with his new film “Bitter Christmas,” is chock full of pungent quotations.

At 76, the filmmaker is unafraid to speak his mind, whether it be about the apolitical Oscars or the decline of American democracy. But his metafictional treat, in which an acclaimed filmmaker falls out with an old friend over pilfering real life for inspiration, shows that he’s equally willing to turn that critical lens inward. It’s the film, he says, “where I’ve been cruelest with myself.”

Digital cover: Cannes kid Diego Calva

(Ian Spanier / For The Times)

In one of those serendipitous intersections editors dream off, it’s Almodovar that our digital cover star is most amped to meet during the fortnight: “If Almodóvar shakes my hand, I can die in peace,” Diego Calva tells contributor Carlos Aguilar.

With two films at the festival — Jordan Firstman’s “Club Kid,” playing in Un Certain Regard, and Nicolas Winding Refn’s highly anticipated out-of-competition title “Her Private Hell” — Calva, who appeared earlier this year in “The Night Manager” Season 2, may be hard for Almodóvar to miss. But the actor isn’t letting the auspicious moment go to his head. “My friends don’t care whether I have seven Golden Globes or if I’m not working at all,” he says. “To them, I’m just Diego.”

What’s next for Nollywood

(Photo illustration by Stephanie Jones / For The Times; photos courtesy of Anthill Studios, African International Film Festival)

I admit I didn’t know much about the Nigerian film industry beyond the term “Nollywood” before reading Daron James’ deep dive on how the West African country is charting a new course after its recent streaming boom went bust. Now I’m eager to see if its embrace of theatrical exhibition — including, gasp, building more cinemas — can rub off on its American namesake.

Nollywood may produce “the second most movies globally after India,” as James writes, but “creative hustle… is still as important as ever.”

More coverage of the 2026 Cannes Film Festival

Digital entertainment company BuzzFeed Inc. is selling its majority stake to Los Angeles entertainment mogul Byron Allen for $120 million.

BuzzFeed announced the sale late Monday, saying Allen Family Digital had agreed to pay $3 a piece for 40 million shares, representing a 52% stake in the company.

Allen will pay $20 million in cash upfront with the remaining $100 million due in five years.

As part of the deal, Allen also will take over HuffPost, another internet pioneer, owned by BuzzFeed.

The sale is expected to close later this month. BuzzFeed founder and current chief Jonah Peretti will transition to a new role as president of BuzzFeed AI.

Allen will become chairman and chief executive.

“This investment in our business and Byron’s management roles will provide liquidity and operational focus to BuzzFeed,” Peretti said in a statement.

Once an internet darling valued at $1.5 billion, the 20-year-old site appealed to consumers with its lists, splashy news articles and quizzes, including “Which ‘Schitt’s Creek’ character are you?”

BuzzFeed has been on the ropes, financially, for a number of years. It bought HuffPost in 2021 to bolster its readership and offerings to advertisers. Three years ago, it pulled the plug on its once ubiquitous BuzzFeed News unit.

BuzzFeed reported a $15 million net loss in the first-quarter of the year. The company generated $31.6 million in revenue, a 12.4% decline compared to the year-ago period. Ad revenue fell nearly 20% year-over-year to $17.1 million. However, content revenue grew more than 50% to $7.5 million.

BuzzFeed soon will make another round of significant cost cuts prior to Allen’s takeover, Peretti said in the statement. He added that BuzzFeed Studios and Tasty will spin off to form a new independent entity.

The deal comes at a busy time for Allen, a former stand-up comedian who is taking over CBS’ late night block later this month, replacing “The Late Show with Stephen Colbert,” which is being canceled by CBS and its owner Paramount Skydance.

Earlier this month, Allen sold television stations in nearly a dozen markets owned by the Allen Media Group to Atlanta-based Gray Media Inc. for about $170 million.

Allen still owns 13 network-affiliate stations in nearly a dozen markets, including the Weather Channel‘s linear and digital outlets, including PETS.TV and COMEDY.TV.

“Our vision is to build on the iconic foundation of BuzzFeed and HuffPost by expanding into free-streaming video, audio and user-generated content,” Allen said. “BuzzFeed is officially chasing YouTube to become another premiere free video streaming service.”

Warner Bros. Discovery’s impending sale has rattled Hollywood — and the company’s balance sheet as the auction’s high costs increasingly come into focus.

The New York-based media company released its first-quarter earnings Wednesday, which included a $2.9 billion loss. That amount includes $1.3 billion in restructuring expenses, including updated valuations for Warner’s declining linear cable television networks.

Contributing to the net loss was the $2.8 billion termination fee paid to Netflix in late February when the streaming giant bowed out of the bidding for Warner. The auction winner, Paramount Skydance, covered the payment to Netflix but Warner still must carry the obligation on its balance sheet in case the Paramount takeover falls apart. Should that happen, Warner would have to reimburse Paramount.

Warner also spent another $100 million to run the auction and prepare for the upcoming transaction, according to its regulatory filing.

“As we prepare for our next chapter, our focus remains on executing our key strategic priorities: scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks,” Warner Bros. Discovery leaders said Wednesday in a letter to shareholders.

Warner generated $8.9 billion in revenue, a 3% decline from the same quarter one year ago, excluding the effect of foreign exchange rate fluctuations.

Its streaming services, including HBO Max, notched milestones in the quarter and 9% revenue growth to $2.9 billion. The company launched HBO Max in Germany, Italy, Britain and Ireland during the quarter.

Advertising revenue for streaming was up 20% compared to the first quarter of 2025.

The streaming unit posted a 17% increase to $438 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

Warner’s studios, primarily its TV business, had a strong quarter.

Studios revenue rose 31% to $3.1 billion, compared to the prior year quarter.

Television revenue soared 58% (excluding exchange rate fluctuations) due to increased program licensing fees to support the launch of HBO Max in international markets. Those launches also propelled the movie studio, which saw revenue increase 21%.

Video games revenue declined 30% because of lower library revenues.

Adjusted EBITDA for the studios grew $516 million (158%) to $775 million compared to the prior year quarter.

The company’s vast linear television networks saw revenue fall 9% to $4.4 billion compared to the prior year period.

TV distribution revenue tumbled 8% largely due to a 10% decrease in domestic linear pay TV subscribers.

The company also felt the loss of its NBA contract for its TNT channel, which NBC picked up. Advertising revenue fell 12%. “The absence of the NBA negatively impacted the year-over-year growth rate,” Warner said.

As the costs of the merger with Paramount come into clearer focus, the opposition has grown louder.

More than 4,000 artists and entertainment industry workers, including Bryan Cranston, Noah Wyle, Kristen Stewart and Jane Fonda, have signed an open letter warning about the dangers of the merger with Paramount. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” according to the letter.

“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”

Adjusted EBITDA for the television networks fell 10% to $1.6 billion, compared to the prior year quarter.

Warner ended the quarter with $3.3 billion in cash on hand and $33.4 billion of gross debt.

WASHINGTON — Polls show that record numbers of Americans think the country is on the wrong track. Anxious voters find no shortage of corroboration. Seeming proof of national decline is everywhere–the savings-and-loan bailout, an imperial Congress, overpaid executives at the top of underperforming companies, record murder rates in cities, declining school quality, an intractable drug epidemic, spiraling health-care costs and a flat economy riddled with deep pockets of regional recession. We haven’t felt good about ourselves, our country or our future since the Gulf War.

President George Bush’s decline in the polls mirrors this trend. As long as voters were concerned about foreign policy, his high standing compensated for lower ratings on domestic affairs. The Cold War’s end has changed the issue mix of presidential races forever.

The recession is an immediate problem, but that will decline in importance when the growth most economists predict resumes this spring. But the recession masks a deeper fear that our post-Cold War inheritance is a declining standard of living, with high-paying jobs and prosperity flowing overseas. That fear will not recede quickly.

With the recession ending by spring, campaign planners will be tempted to heave sighs of relief and run a status-quo candidacy against the uncertainties of a switch to the Democrats. That would be a serious mistake.

For Bush will never have more fertile ground to lay out a new GOP agenda that addresses the deep fear voters have about the future of America. He can capitalize on the public’s thirst for certainty by laying out a set of ambitious goals–in government, in jobs, in schools and in social progress.

He can start with government. A recent Gallup poll shows 20% blame Bush for the economy’s condition, but 54% blame Congress. Support for term limits and a Trumanesque campaign to fix what’s wrong with Congress will not only pay political dividends, but give him a governing coalition for a second term. Beginning with this week’s State of the Union, Bush should challenge Congress to pass his economic recovery program within 100 days and return it to him for signature. He should also push legislation on health-care reform, education and crime by similarly challenging Congress. To dramatize the push for excellence, he might consider national middle-class merit scholarships for college.

Nor should he give up on trade, despite the Japan trip. Presidential involvement in a few trade confrontations will make his claim to fight for American jobs more credible. Where unfair trading practices are found, executive action on import relief should be swift.

By establishing his vision for the post-Cold War future, contrasting his own activism with Democratic and congressional obstruction, showing that he thinks free trade should benefit us as well as our partners and fighting hard for the middle class–in essence charting a course the country thinks takes us in the right direction and gets us off the wrong track–he’ll win not only reelection but a mandate.

It’s also important to understand this is not the 1984 reelection. Compression of the primary calendar means there are fewer days between the first Iowa caucuses, Feb. 10, and Super Tuesday, March 10, and the Democratic winner-take-all rules could give a front-runner enough momentum to be the apparent nominee by April. There is little prospect for a protracted Democratic primary battle like 1984’s between Gary Hart and Walter F. Mondale.

Because the Democrats won’t be tearing each other apart as long, Bush should engage the Democrats early. But he needs to shore up his own vulnerabilities before he begins to contrast with the Democratic nominee. He needs to sharpen his middle-class message, starting with the economy and people’s fears about the future.

This should be done well before the summer Democratic convention, when the Democratic ticket will have a solid week of national television coverage to engage in Bush-bashing.

It’s also critical to understand this is not 1988. The Democratic nominee will also have learned a lesson from Michael S. Dukakis–define your candidacy before your opponent gets a chance to define it negatively for you. It’s highly unlikely the ’92 Democratic nominee will be kept on the defensive for months as was Dukakis.

This year’s presidential election takes place in politically uncharted territory. It is the first contest of the post-Cold War era, probably the last election with a World War II veteran running for President. World events, from Eastern Europe’s velvet revolutions of 1989 to last summer’s failed Soviet coup, have irrevocably reshaped America’s political landscape.

Foreign policy and defense no longer matter much to voters. Communism’s death also buried anti-communism as an issue. With few external threats, Americans see old relationships through a new prism. They supported the post-war alliance with Japan for mutual security; without the Cold War, that same relationship looks one-sided.

To win reelection, it’s critical to understand what this dramatic shift means. The old rules are gone–now is the time for a new political order in American campaigns. For four decades, we’ve elected presidents against a Cold War backdrop. Now that we’ve won the Cold War, we need a new presidential agenda that’s relevant for the ‘90s.

Rosenior’s dismissal may solve one problem, but those in Chelsea‘s boardroom must take the major share of the blame for a club that looks increasingly out of control.

Chelsea‘s recent losses eclipsed Manchester City‘s £197.5m deficit in 2011, despite bringing in £490.9m in revenue, which the club says is the second highest total in its history.

Since the current ownership took control in 2022, Chelsea have spent around £1.5bn on players, focusing on securing a raft of younger players on long-term contracts.

In this time, they have sacked Champions League winner Tuchel at the end of their first 100 days at the helm, then his successor Graham Potter seven months later.

Frank Lampard had a short second spell in charge as interim boss before former Tottenham Hotspur manager Mauricio Pochettino took charge, leaving by mutual consent after one season.

Enzo Maresca took over, but was sacked in January, less than six months after winning the Club World Cup to add to the Uefa Conference League.

If the final straw for Rosenior was criticism of his players, Maresca’s departure came amid friction with Chelsea‘s hierarchy, stunning key figures at the club after a 2-0 win against Everton in December by stating “many people” had made it his “worst 48 hours” since joining the club.

Cryptic, perhaps, but the beginning of the end for the Italian, as those in charge at Chelsea took a dim view of his public expression of discontent.

Those with knowledge of Maresca’s views, though, said he had grown unhappy at a multitude of factors, including encouragement over which players should start and which substitutions should be made during matches.

It led to the Rosenior experiment, which backfired on BlueCo, who may reflect on the number of managers hired and fired during their tenure and finally think: “It’s not them. It’s us.”

Former Chelsea winger Pat Nevin told BBC Radio 5 Live: “You would have to be a bit simple to be surprised at the situation with all the evidence in front of you.

“This is four seasons the new ownership has been in. This is manager number six. When you change it that amount of times, you have to ask the question – is the problem really the manager?”