Paramount stock has lost about 20% of its value since the beginning of July amid concerns that the company will have to shoulder higher costs to get its $111-billion Warner Bros. acquisition across the finish line. Friday’s agreement with the state attorneys general to delay the merger’s close until after an antitrust trial, which will likely be held in 2027, also was unsettling to shareholders and some employees.
Paramount Skydance shares closed at $8.03, down 2.19% Monday afternoon.
“Let me be clear: we remain highly confident that this transaction does not pose any legal issues, and we will complete it and bring these two companies together,” Ellison wrote in the memo shared with media outlets.
Paramount’s internal teams and Warner Bros. have been diligently working to lay the groundwork for the two rival companies to integrate their operations. The rush had been on because Ellison wanted to close the deal this week — or at least by the end of September — to avoid a higher payout to Warner shareholders.
However, Paramount suspended such ambitions on Friday, agreeing to delay the merger until after a trial to litigate the merits of the antitrust case brought by Bonta and the other Democrats. Oregon, Washington, Colorado, Nevada, New Mexico, New Jersey and New York are among the states joining California in the fight.
The Writers Guild of America separately sued this month, alleging the merger would harm writers. Over the weekend, SAG-AFTRA announced that it supports the state attorneys general as they try to beat back the merger.
“Our members have every right to expect that the government will do thorough regulatory oversight when a deal of this magnitude takes place,” SAG-AFTRA President Sean Astin said in a statement.
“The workers in this industry should not have to rely on promises and aspirational statements,” he added. “This isn’t a conversation about shareholder value, it’s about the survival of the entertainment business in America.”
Teamsters already have spoken out against the deal.
Bonta and fellow attorneys general from Democrat-led states have argued the deal would violate the century-old Clayton Antitrust Act in three markets: wide-release theatrical films, potential blockbuster movies and cable television channel concentration.
U.S. District Judge Araceli Martínez-Olguín, who is overseeing the antitrust suit filed by Bonta two weeks ago, wrote in an order last week that the plaintiff states had presented “compelling evidence” that the proposed merger may violate U.S. antitrust law.
California Atty. Gen. Rob Bonta is leading an effort of 12 state attorneys general attempting to block Paramount Skydance’s $111-billion takeover of Warner Bros. Discovery.
(Genaro Molina / Los Angeles Times)
Paramount disputes that. The firm, controlled by the Larry Ellison family, has pointed to regulatory approvals it has already garnered, including from the U.S. Department of Justice, which found its acquisition of Warner Bros. Discovery would not harm competition.
The deal also won clearances from regulators representing 65 jurisdictions, including Australia, China, the European Commission, Germany, France, Spain and Canada. Paramount has pointed to those approvals as proof that the law is on its side.
In his memo, Ellison said delaying the deal until after a trial before Martínez-Olguín made sense.
“We believe this is the right path because the facts and the law are on our side, and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail,” Ellison wrote.
Employers are bracing for what could be the highest rise in health insurance premiums in 16 years in 2027, driving up the average cost of family coverage in California to more than $30,000 — the price of a new compact car.
Health insurance companies expect the cost of medical services and prescription drugs to soar by 9% in 2027, according to a new survey by PwC, the highest rise the researchers have found since 2011. Insurers use those expected medical costs to calculate the price of premiums in the coming year. Many employers require workers to pay part of that cost.
Experts say the escalating costs of employers’ premiums are reducing workers’ wages and take-home pay, while raising the prices of goods and services in California and across the country.
“It’s going to erode the standard of living for lots of California families,” said Glenn Melnick, a USC professor of healthcare finance.
Melnick said when employers are forced to spend more on health insurance, there is less money available for wages. The skyrocketing premiums, he said, are like a hidden pay cut for working families.
The higher cost also has small-business owners wondering whether they can continue paying for their workers’ health insurance.
Co-owner Camden Avery makes a sale at the Booksmith in San Francisco.
(Josh Edelson / For The Times)
This year, premiums for staff at the Booksmith, an independent bookstore on Haight Street in San Francisco, leaped by 17%, said Christin Evans, the store’s owner. Next year could bring even more pain. The monthly premium for four employees is $3,250.
To try to cope, Evans said, she has reduced staff hours by closing the store earlier.
“We have to absorb it,” she said. “We’re not paying the wages we want to pay or delivering the customer service we’d like to deliver.”
Seventeen million Californians receive health benefits from an employer. Those premiums have been rising faster in California than the national average.
Between 2022 and 2025, the average family premium for employers in the state rose by 24% to $28,397, according to a survey by KFF and the California Healthcare Foundation. That was nearly double the 12.2% increase in consumer prices during those years.
Hospital, pharmaceutical and other medical costs escalated even faster after 2025.
PwC’s annual survey of insurers last year found an expected rise of 8.5% in 2026, which its researchers later revised to 9%.
A key driver of the rising medical costs, according to experts, is prices charged by hospitals. In recent years, some health systems, including UCLA and Cedars-Sinai, have grown larger by buying nearby hospitals and expanding their clinics, becoming more dominant in the community and reducing competition.
Melnick said the expansion of some health systems into giant organizations means that they can “tell insurance companies what the price will be.”
A Cedars-Sinai spokesperson pointed to a 2022 paper that found that for-profit health system prices had escalated faster than those at nonprofit systems like Cedars. The paper was partly funded by Cedars.
“Cedars-Sinai Health System’s growth in recent years has expanded access to the highest levels of patient care and medical innovation across the Los Angeles region,” the spokesperson said.
UCLA did not respond to requests for comment.
Another factor is the rising cost of prescription drugs. Spending on cancer drugs, the most costly category, reached $143 billion in 2025, an annual increase of 12%, the PwC survey found.
The nation’s spending on obesity medicines, including GLP-1 drugs such as Ozempic and Wegovy, soared by 81% last year, PwC said. A 30-day supply of the drugs lists for more than $1,000.
The obesity drug manufacturers say the medicines can reduce medical expenses by preventing other costly conditions such as diabetes and heart disease, but data don’t yet show such reductions, PwC said.
Researchers at the California Healthcare Foundation say a large part of the problem is that hospital operating costs, prescription drug prices and doctor fees have been allowed to grow unchecked for decades.
The foundation estimated in a report last year that 25 cents of every dollar spent in California — more than $73 billion each year — does nothing to help patients. Instead it goes to excessive profits for providers, administrative red tape and other waste, the foundation found.
California employer premiums are expected to rise next year for another reason: Gov. Gavin Newsom and lawmakers agreed in June to raise taxes on the private plans to help pay for the cost of Medi-Cal, which covers the medical costs for the poor, and to help balance the state budget.
The California Assn. of Health Plans said insurers will add the tax to next year’s premiums. The trade group estimates the higher tax will cost each insured person $100 next year or $400 for a family of four.
The higher tax must still be approved by the Trump administration. Republicans in the state Assembly wrote a letter to the administration this month, asking officials to deny the request.
Researchers also expect a jump in premiums for families without employer insurance who purchase policies on state marketplaces such as Covered California. Some of those families faced double-digit increases this year because of rising medical costs and the end of enhanced federal subsidies that Congress had approved as a temporary measure during the pandemic. Almost 400,000 Californians dropped their Obamacare plans this year as prices soared.
To deal with the higher premiums, some employers are changing the design of their health plans to shift more of the cost to workers by raising deductibles and co-pays.
Those higher out-of-pocket costs are just the beginning of the fallout. Twenty-two percent of chief financial officers surveyed by Mercer in February said the high price of health benefits had forced them to stop hiring or led to layoffs. Thirty-six percent of those executives said the rising premium costs have harmed workers’ wages and raises.
Candice Elliott, a human resources consultant in Santa Cruz, said smaller businesses such as restaurants struggle to find ways to cover the higher costs.
Many restaurants, Elliott said, already have a slim margin between their revenues and expenses. When premiums rise, she said, some restaurants have added a fee to the customer bill to help cover workers’ health costs. Others have hiked menu prices.
“That impacts affordability for the consumer,” Elliott said. “It makes inflation greater.”
Some small businesses have moved from so-called silver plans to the lower-priced bronze plans, she said, which cover less of the employee’s monthly premium. “It’s effectively a decrease in pay for the employee,” she said.
Others are hiring employees overseas, Elliott said. “You can pay someone in the global south half of what you pay an American and still afford them a good standard of living and benefits that are unaffordable in the U.S.,” she said.
Melnick, the USC professor, said many workers don’t realize how much they are losing as their employers’ premiums rise. He tells people to look at their W-2 tax form from last year, where employers are required to report the cost of the employee’s premium in box 12, under “Code DD.”
He said USC’s premium for his family of four is $45,000.
“The base is so high that even a small increase has a big impact,” he said. The continuing annual increases, he said, are “bad news for everybody.”
In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.
The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.
A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.
“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.
“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.
Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.
The GEO Group did not respond to requests for comment.
Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.
Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.
The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”
Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.
But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.
The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.
Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.
“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.
Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”
But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.
Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.
Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.
“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.
Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.
New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.
An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”
“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.
The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.
Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.
“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”
New Jersey is launching a new fee on companies whose workers have Medicaid health coverage instead of being covered by their employers. Other states are considering it, too.
Democratic lawmakers and governors see it as a way to help pay for the joint federal and state insurance program that covers low-income residents as federal policy changes are expected to make the program more expensive for states and may lead to a reduction in the number of people with coverage.
Proponents also say it’s about fairness because employers benefit from having some lower-income workers with taxpayer-funded health coverage.
Business groups object. So do some liberal policy organizations.
New Jersey is putting the fee in place
New Jersey Gov. Mikie Sherrill signed a measure Tuesday night to charge employers that have at least 50 workers covered by Medicaid, and the state budget she approved earlier in the week counts on raising $145 million this year from the program.
Under the plan, companies will be billed for each employee and employees’ dependent receiving Medicaid, the joint state-federal insurance program.
The fees per person would start at $325 a year for companies with 50 to 249 Medicaid beneficiaries and top out at $725 annually for employers with at least 500 recipients.
A bill passed this week in California doesn’t impose a charge now, but it does direct the state administration to present lawmakers options for doing so next year.
Finishing the job would fall to the successor of Gov. Gavin Newsom, a Democrat who is leaving office in January. Democratic gubernatorial candidate Xavier Becerra has made an employer charge part of his election platform.
State Sen. John Laird, a Democrat who sponsored the California proposal, said the big tax and policy law President Trump signed a year ago was a major factor in the need for action because it could prompt the state to spend more on Medicaid to plug holes left by federal changes.
The nonpartisan Congressional Budget Office expects more than 10 million people will be uninsured because of the law by 2034. It requires some beneficiaries to work, be in school or volunteer — and requires even more to document whether they meet the requirements.
Most employees at the bigger companies would not be at risk of losing Medicaid coverage as long as they’re working at least 20 hours a week.
Laird also said there’s an equity issue involved.
“If you’re a small business person in California, you are quite likely paying for health insurance for your employees. And through your taxes, you’re paying for health insurance for some of the biggest employers in California,” he said. “And that’s not fair.”
Legislation with similar intents passed one legislative chamber in both Colorado and Oregon this year, but neither made it to law. A measure was also introduced in Washington.
Connecticut Gov. Ned Lamont, a Democrat who is seeking a third term in November’s election, has called for the same move there with the idea of making it a part of the state budget that would kick in two years from now.
Opposition comes from business and some liberal groups
It’s no surprise that business organizations have criticized the approach, which would add to their expenses.
“The fact remains that many job-creators are still going to be penalized for something they have no control over,” Christopher Emigholz, the chief government affairs officer at the New Jersey Business and Industry Assn., said in a statement. “If an employee declines an employer-provided health plan because they’d rather be on Medicaid, it is unfair to penalize the employer for that employee’s decision.”
Some left-leaning policy organizations also oppose the charges.
Gideon Lukens, who analyzes health policy at the left-leaning Center on Budget and Policy Priorities, said that while the idea may be well-intentioned, it could lead companies to employ fewer people from low-income household or single parents. He said companies could also consider the policy in decisions about whom to hire or lay off — and also on where to locate or how many workers to employ.
And, he said, it could make employees — or potential employees — less likely to enroll in Medicaid knowing it would make them less attractive to employers.
“Usually, when I see a tax on something it’s going to discourage whatever being taxed,” he said in an interview.
New Jersey’s legislation tries to address some of the concerns. It would exempt temporary, seasonal and part-time employees. It would also bar employment decisions based on a workers’ Medicaid status.
Charging companies whose workers are covered by Medicaid isn’t a new idea. At least two states have previously enacted it, and it’s been proposed in Congress.
Massachusetts lawmakers in 2017 adopted a charge on employers up to $750 per nondisabled worker who was covered through Medicaid or a state-subsidized health exchange plan. The program began in 2018 was not renewed when it expired the next year.
An even earlier policy in Maryland, in 2006, immediately affected only Walmart. An industry group challenged it in court and won, stopping the fees.
The latest generation of proposals may avoid that legal pitfall by not referencing those health plans in the legislation.
Michele Spagnuolo allegedly used insider information to profit from bets on people on Google’s most-searched list.
Published On 28 May 202628 May 2026
A Google software engineer has been charged with fraud by US authorities after allegedly using insider information to win more than $1.2m in bets on the prediction market platform Polymarket.
Michele Spagnuolo, an Italian citizen residing in Switzerland, is accused of using confidential information to wager on the results of Google’s annual most-searched list, according to a criminal complaint unsealed on Wednesday.
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US prosecutors accuse Spagnuolo of using an account named “AlphaRaccoon” to make trades on various markets linked to the results of Google’s 2025 Year in Search.
The total sum of the bets was approximately $2.75m, according to the complaint, filed in federal court in New York.
Among the bets, Spagnuolo successfully predicted that indie pop musician d4vd would top the list for the most-searched for person last year, hours after accessing confidential data at Google, according to prosecutors.
Spagnuolo, 36, faces charges of commodities fraud, wire fraud and money laundering.
“Today’s charges reinforce a decades-old message: corporate insiders cannot use confidential business information to turn a profit in our markets,” US Attorney for the Southern District of New York Jay Clayton said in a statement.
“Insider trading compromises the integrity of our markets, and the American people want this greed-driven conduct investigated and prosecuted,” Clayton added.
Bets on Maduro’s capture
Google said in a statement that it is working with law enforcement and that using confidential information to place bets is a serious breach of company policy.
Spagnuolo has been placed on leave, according to a Google spokesperson.
A Polymarket spokesperson said the company had worked closely with the US Attorney’s Office on the investigation and that the firm “is the only prediction platform to date whose cooperation has led to insider trading charges in the United States”.
“We are committed to maintaining accurate, fair, and transparent markets as well as enforcing our rules and working with our regulators and law enforcement,” the spokesperson added.
Last month, a US soldier was charged with using classified military information to place bets on Polymarket regarding the abduction of Venezuelan President Nicolas Maduro.
Prosecutors accuse Gannon Ken Van Dyke, 38, of cashing in on the US operation against Maduro, to the tune of more than $400,000.
When Kevin Hart announced in January that he’d licensed his name to Authentic Brands Group, the popular comedian was silent on a key detail: the future of his namesake media company.
Hart sold some ownership and oversight of his brand in exchange for an undisclosed sum of money and a stake in Authentic, a New York-based firm that manages the likenesses of Marilyn Monroe, Muhammad Ali, Shaquille O’Neal and David Beckham.
Hart used the partnership with Authentic to reset his relationship with the people around him and his company, according to six current and former employees. Hart’s employees say they worry that this deal marks the beginning of the end of Hartbeat, the comedian’s namesake media company that produces films, owns a network of short-form video channels and handles marketing for brands.
Though the announcement made no mention of Hartbeat, the agreement gave Hart money to buy out his private equity partner in the company over time and regain control of the use of his name, image and likeness. Hart’s endorsement deals, which had been a pillar of Hartbeat business, will now be handled by Authentic.
Once valued at about $650 million, Hartbeat has shriveled over the past few years. The company enacted its latest round of job cuts in December, firing the heads of its scripted TV division, as well as employees working across marketing, social media and brand partnerships, said the people. Earlier this year it let go the leaders of its podcast division and later sued them for breach of contract.
Hart has withdrawn from the company, leaving day-to-day management in the hands of a small group of executives. Staff meetings have been canceled. The development of new film and TV projects has slowed. A slate of new podcasts was pitched but never produced.
Hartbeat’s struggles reflected the challenging environment for many Hollywood production companies as media giants merge and cut spending. The company is also a cautionary tale in this age of the celebrity media mogul. Financial firms have plowed money into media companies led by high-profile figures, believing they could use their notoriety to build valuable businesses. Yet even seemingly successful ones have had a hard time.
Hartbeat, like many of its peers, has suffered from mismanagement and grappled with the tension between the needs of the star and his company. Hart, one of the hardest-working people in Hollywood, tired of subsidizing a company that relied so much on him
Hart declined to comment for this story, which is based on conversations with several current and former employees. On Sunday night, Hart, who hosted the widely viewed roast of NFL great Tom Brady two years ago, was the subject of his own roast on Netflix.
Building a Billion-Dollar Business
One of the most successful stand-up comedians and actors of his generation, Hart, 46, has always been entrepreneurial. In 2017, he started Laugh Out Loud, an online video comedy business that later grew to include branded entertainment. He also operated his own production company, Hartbeat Productions, that made programs for streaming services like Peacock, Quibi and Netflix Inc.
With Hollywood in the midst of a production boom, Hart watched his fellow celebrities get rich from their media enterprises. Reese Witherspoon sold her media company, Hello Sunshine, in a deal that valued it at as much as $900 million. Hart’s friend LeBron James raised money for his company, SpringHill, at a valuation of $725 million. Hart believed he could be next.
In late 2022, Hart merged his business interests under the Hartbeat banner and raised money by selling a 15% stake to the private equity firm Abry Partners. The deal valued the company at about $650 million.
The new business was predicated on three pillars: film and TV, short-form video and advertising. Hartbeat had a deal to produce movies for Netflix, a slate of podcasts for SiriusXM Holdings Inc. and original audio series for Audible. Hartbeat also developed relationships with advertisers such as Lyft Inc., Procter & Gamble Co. and DraftKings Inc.
While Hart would star in Hartbeat projects, the goal of the company was to develop projects and new business that didn’t involve its namesake founder. The company could leverage Hart to sell projects and secure broad programming partnerships. Hart would ask that Hartbeat be involved in producing his movies and any advertising campaign for which he was a spokesperson. His fees as a producer and brand ambassador would help pay the bills. The hope was he’d convince other celebrities to use Hartbeat as well. Thai Randolph, who had been running Laugh Out Loud, was named chief executive officer.
Hartbeat opened offices in New York and Atlanta and took over a 40,000-square-foot West Hollywood office once occupied by Oprah Winfrey. Hart redesigned the space and installed a world-class art collection.
The upper-level lobby featured a work by Ghanaian artist Serge Attukwei Clottey, while the conference room had a sculpture by Zimbabwean artist Moffat Takadiwa made of computer keyboard keys. A portrait of Kobe Bryant by Julian Pace hung outside a podcast studio.
Hart’s own office featured a dressing room, a series of paintings by South African artist Feni Chulumanco, multiple TVs and a desk from a prominent French designer. “He really has almost a full-service apartment in his suite,” Kai Williamson, who worked with Hart on the project, told Architectural Digest. Hart was interviewed for a story and also filmed an episode of the design magazine’s “Open Door” video series.
While Hartbeat expanded, Hollywood entered a recession. Economic uncertainty, rising interest rates and growing skepticism about the profitability of streaming caused major media companies to fire staff and pull back on buying new projects. Hartbeat was a little more insulated than most because talent like Hart could usually still get a project made. Still, producing projects without Hart in a starring role became more difficult.
Randolph left the company in late 2023 and was replaced by Jay Levine, who had spent much of his career at Warner Bros. Discovery Inc. Levine brought in a couple of other senior leaders with experience at major media companies.
A contingent of executives pushed Hart to scale back some ambitions, the people said. The company couldn’t afford to be working in so many different businesses at the same time, especially as areas like free, advertising-supported online video, and podcasts got more competitive. Hart was one of the most prolific and productive creative people in the world, starring in and producing movies, TV shows, comedy, short-form videos and advertisements. The point of the company was to relieve the stress on him, not add to it.
While Hartbeat closed its New York office, Hart was reluctant to scale back his vision or replace some long-time lieutenants. Levine negotiated his exit at the end of 2024 and was followed out the door by the company’s chief financial officer and chief content officer. Days before Thanksgiving, Hartbeat laid off about 20 people, nearly one quarter of its work force.
A year of chaos and conflict
In January 2025, Hart announced he would be the new CEO of Hartbeat and pledged to outline the firm’s strategy in the coming weeks. Instead, Hart went weeks and sometimes months without visiting the office, the people said, and empowered Jeff Clanagan and CFO Eric Stoneburner to run the company day to day. (Hart was on set to shoot at least a couple movies last year, in addition to his other work.)
A former concert promoter and movie producer, Clanagan had helped make Hart a major star. He had partnered with Hart to bring his stand-up specials to the big screen, producing shows such as 2013’s Kevin Hart: Let Me Explain, which grossed $32 million at the box office. Clanagan produced some of these specials under the banner of his own company, Codeblack Films, which helps promote, market and distribute video from Black creators.
Clanagan continued to operate Codeblack while serving in a senior capacity at Hartbeat, said the people. He pushed employees at Hartbeat to post its videos to the Codeblack channels as well, saying they could use the additional reach to raise awareness. The videos generated advertising sales for Codeblack.
Clanagan had employees at Hartbeat oversee Codeblack’s social media pages and asked to get those channels loaded into Hartbeat’s content management system. That gave Codeblack’s YouTube channels advantages over others because of Hart’s prominence and his company’s designation with YouTube. Employees raised concerns with human resources and the company’s lawyer.
Clanagan also became increasingly interested in video generated by artificial intelligence. He started a new app called Blktopia, a streaming service for Black viewers programmed with content from online creators and often made by AI. He urged employees to work on it, the people said. Clanagan initially responded to a request for comment and then retracted the text message.
Meanwhile, many of Hartbeat’s main businesses languished. Sales from the company’s YouTube channels fell and investment in new film and TV projects slowed. Hartbeat, once profitable, started to bleed cash. Hartbeat had hired Eric Eddings and Lesley Gwam to produce audio shows that didn’t involve Hart. While the pair developed a slate of projects, they never got approval to make them.
In mid-December, Hartbeat fired about a dozen employees, including some of those who were supposed to develop the podcasts. Eddings and Gwam then decided to start their own company and began trying to raise money. When Clanagan found out, Hartbeat fired them and sued for alleged theft of trade secrets and breach of contract.
A court approved a temporary restraining order but then rejected a preliminary injunction, saying Hartbeat had not demonstrated Eddings and Gwam had used proprietary information or trade secrets. The court said the request was “vague, ambiguous, and overly broad.” The case is ongoing.
Hartbeat also fired the heads of its TV division, Tiffany Brown and Mike Stein, who were in the middle of producing a TV show based on the film Barbershop for Amazon.com Inc. and a second season of the animated series Lil Kev.
The company made no official announcement explaining the cuts. The following week, senior leadership arranged a Zoom meeting. Hart remained off camera until it was his time to speak. He talked for a few minutes about changes at the company and took no questions. Hart changed his phone number in the weeks following the layoffs. (Some of his advisors had suggested he do this years earlier so that he wasn’t so available.)
A few weeks later, Hart announced the deal with Authentic Brands Group. Hart used some of the proceeds to buy out Abry Partners, freeing him to steer his brand deals to Authentic and outside of Hartbeat. A few of his employees and his publicist joined him at Authentic.
“This is a turning point for Hartbeat,” the company wrote in a subsequent email to employees, explaining that the deal would free Hart up to focus on what he does best, while allowing Hartbeat to stand on its own and grow beyond him.
“I know the past few months have been tough,” Hart wrote, adding that for too long the company had been too dependent on him. The email was said to be from “Kevin AKA Boss Man.” It was sent by Hart’s assistant.
For Vince Gervasi, chief executive of Triscenic Production Services, it was yet another body blow.
His company, a leading supplier of set and scenery storage and transportation for the film industry, was poised for a turnaround after nearly three years of losing money.
Then, last week, he said a line producer on “Shark Tank,” one of his long-standing clients, called him to say the hit ABC reality show was relocating production from the Sony Pictures Studios lot in Culver City to Atlanta.
“They said it was too expensive here to do anything,” Gervasi recalled being told. “I said, ‘Are you kidding me?’ This show has money.’”
For the last six years, Triscenic had dedicated a 70,000-square-foot warehouse at its Santa Clarita facility to store the show’s items, transporting them in 30 custom made semitrucks between seasons.
Battered by the pandemic, the dual labor strikes, economic downturns and consolidations, Gervasi told The Times in 2024 that he had laid off 78 of his 85 employees and winnowed down his once-buzzing operations that housed sets and scenery across 2 million square feet in 41 buildings to half that, with the expectation that things would bounce back.
Like many other local film industry veterans, he is still waiting.
Vince Gervasi, at Triscenic Production Services, in Santa Clarita.
(Bob Doyle)
“I’ve been doing this for 41 years. I’ve seen the good and the bad — this is a complete decimation. It’s unprecedented.”
From florists to prop rentals to catering and beyond, production services and craft businesses are the hub and spoke of L.A.’s film and TV industry. But many of these businesses — some of which have been family-operated for generations — are struggling to weather a post-pandemic slump in film activity deepened by runaway production, media consolidation and the end of the streaming boom.
Film shoot days in the Los Angeles region have fallen nearly 50% since 2019, according to FilmLA data reviewed by The Times. Employment in Los Angeles County’s motion picture and sound recording industry has similarly plummeted, with a loss of some 57,000 jobs in the last four years, federal labor data show.
The slowdown has become a major issue in the L.A. mayoral race as evidence mounts of the economic toll on the city.
Just last month major industry vendor Quixote — whose Star Waggons trailers were once ubiquitous on the streets of L.A. — announced that it was winding down most of its sound stage business in Los Angeles, closing its operations in Atlanta and laying off 70 employees.
In a note to its clients and partners, Hudson Pacific Properties Inc., Quixote’s parent company, said that “we have persisted through the prolonged and ongoing slowdown in commercial, television and film production. But ultimately, industry conditions have forced difficult decisions.”
Between 2022 and 2025, more than 80 such businesses across Los Angeles have closed down, according to a list compiled by the ACME Directory, a production resource that connects TV and film professionals with specialized products and services.
“It’s, in many ways, a much bigger reflection of the contraction we’re seeing in the industry right now,” said Kevin Klowden, a senior fellow at the Milken Institute, focused on entertainment and technology. “The surge in demand for streaming and the consequential demand to catch up on content hid the fact that the industry was shrinking.”
Last October, the family-run Costume Rentals Corp. began liquidating its inventory after dressing film and television characters for 50 years. The North Hollywood firm provided costumes for “Forrest Gump,” “Apocalypse Now,” “Fast and Furious” and, more recently, the 2024 Bob Dylan biopic, “A Complete Unknown.”
A year earlier, Valentino’s Costume Group closed its doors after two decades in business and sold off its 400,000 items. At the time, Shon LeBlanc, the North Hollywood shop’s last owner standing, said he had endured a “perfect storm” of calamities and was drowning in debt following the cancellation of 15 shows in a single week.
Even the legendary Western Costume, which has been in business since 1912, has been hurt by the slowdown. During the 2023 strikes by writers and actors, Western Costume furloughed 43 employees, or about two-thirds of its staff. Recently, the North Hollywood costume mecca, which has supplied such classic films as “Gone with the Wind,” “The Wizard of Oz,” “The Sound of Music” and the TV series “Mad Men,” furloughed an unspecified number of its workers, said two people familiar with the matter who were not authorized to speak publicly.
A representative of Western Costume did not respond to a request for comment.
Marc Meyer, the owner of Faux Library Studio Props, had strained to stay in business through the pandemic shutdown and the 2023 labor strikes — laying off 11 of his 13 employees.
By the start of 2024, Meyer, a set decorator who was credited with inventing the fake movie book, was drastically behind on rent, owing $500,000, he said.
Marc Meyer, closed the doors on Faux Library Studio Props in North Hollywood after almost 25 years in business.
(Mel Melcon/Los Angeles Times)
Meyer’s landlord had given him a week to come up with more than $100,000 in unpaid rent or vacate the 89,000-square-foot warehouse in North Hollywood filled with props, books, antique furniture and other items that have decorated such film and TV sets as “Angels & Demons” and “The X-Files” for almost a quarter-century.
Meyer came up with $45,000 to mollify his landlord, garnering a month’s reprieve. A GoFundMe was set up during the strikes and a host of industry colleagues such as “Top Gun: Maverick” set decorator Jan Pascale stepped up, buying props to help fill his coffers.
“The change in our city is palpable,” said writer and director Sarah Adina Smith, a co-founder of Stay in LA’s, a grassroots campaign aimed at increasing film and television production in Los Angeles. “It’s not just that so many crafts and artists are out of work, but you see small businesses, too. In L.A., we’re an ecosystem fed in large part by creative jobs, and that is quickly vanishing.”
Marlon Gilbert still waxes nostalgic about the days his Commerce-based company, Gilbert Production Service, stored and transported scenery and props for TV shows including “Dancing with the Stars” and feature films like “Batman.” At one time, he said, he was handling seven active TV shows in a single season.
“When it was still on Fox, the ‘American Idol’ finale, we had like 20 semitrucks going in and out. Money was flowing like crazy,” he said. “But eventually times got hard for them, and they cut back on their production stuff.”
By last year, Gilbert was down to just three clients. “It wasn’t sustainable,” he said.
In December, after three decades, the family-owned business filed for Chapter 11 bankruptcy and shut down too.
“I couldn’t pay rent on our warehouse lease, I blew through my savings and my 401(k),” he said. After his wife was hospitalized following multiple strokes in 2023, he said, “I didn’t have the energy to beat the bush for new business.”
“I would’ve liked to have gone out with more panache and made a big splash and money selling the business. But there was nothing left to sell.”
Scott Niner, president and owner of Dangling Carrot Creative, checks on a robotic machine as it fabricates at his shop in North Hollywood.
(Jason Armond/Los Angeles Times)
Scott Niner, president and owner of Dangling Carrot Creative, offers a case study in how production service businesses have navigated the tidal wave of upheavals.
After 18 years in business creating graphic signage, custom flooring and wallpaper to make sets look exactly as art directors dreamed up, the company filed for Chapter 11 bankruptcy last April.
Before the pandemic, Niner’s Valencia-based business was thriving.
In 2014, he opened a Georgia satellite office to service the film and TV productions that had migrated to take advantage of the state’s generous tax credits. He steadily expanded his workforce to 32 employees in L.A. and Georgia.
Production was so plentiful that he even branched into the bakery business in 2018, delivering graphics and cupcakes in the same order. At its peak, Dangling Carrot generated $800,000 a month.
When the pandemic shutdown hit, Niner’s monthly revenue dropped to $50,000, he said. He kept his workers employed by making face shields that he donated to hospitals.
“I hung in there, and it was painful,” said Niner, who received some government assistance.
During the strikes in 2023, he drained his 401(k) and his union pension to keep his shop open and his workers employed.
Niner said he deployed a strategy of “pivoting and praying.” He shifted his business to focus more on fabrication, making giant 3-D-printed items for movie premieres, 25-foot-long, 8-foot-tall and 8-foot-deep ammo chests for a “Call of Duty” promotion and even graphics at airports.
Last last month, Niner sold off his Georgia business as filming in that state shifted to the U.K. He downsized his home and moved his business from Valencia to a much smaller building in North Hollywood. He is now down to 11 employees.
“I have a very bright outlook on the future, especially because we’re getting phone calls from people who never would have called us because all the other guys are out of business,” he said. “There’s something to be said about the last man standing. But I’m the last man standing on $2 million in debt. I’m more like lying down.”
The industry got a reprieve last week when CBS announced that it was relocating its hit drama “Tracker” to Los Angeles from Vancouver, Canada, after receiving a $48-million tax credit. Many view such moves, however, as small wins over comprehensive ones.
“There’s been a fundamental change happening here over the past five years,” said Cale Thomas, a makeup artist who has worked on “Guardians of the Galaxy 3” and the recent biopic “Michael.”
Thomas, who is a member of Stay in LA, acknowledges that California’s step last year to double its tax incentives has helped to spur an uptick in local production, but that has not stopped the outflow of productions or resolved a host of restrictions and costs that have hampered the industry.
He worked on “The Mandalorian” and other Lucasfilm series that stream on Disney+ for five years. “We shot in Manhattan Beach Studios,” he said, but noted that Lucasfilm has since moved one show to the U.K. and produced two others there.
“This has been devastating for our industry,” he said. “Hundreds of generational family businesses aren’t being used anymore.”
The pain points are not confined to Hollywood.
Last year, Marvel Studios — which had made Georgia, known as Hollywood of the South, its primary filming center for such major franchises as “Avengers: Infinity War” — relocated much of its production to the U.K.
The impact has meant even fewer domestic productions causing an even bigger ripple effect.
Among the high-profile casualties was Hackman Capital Partners, which aggressively snapped up studios, acquiring $10 billion in assets under management before production activity plummeted nationwide.
In January, the company defaulted on its $1.1-billion mortgage on Radford Studio Center, the historic lot where “Seinfeld” and “Gunsmoke” were filmed and which gave Studio City its name.
Earlier this year, Hackman Capital Partners defaulted on its $1.1-billion mortgage on Radford Studio Center, the historic lot where “Seinfeld” and “Gunsmoke” were filmed.
(Gary Coronado/Los Angeles Times)
Three months later, lender Deutsche Bank filed a foreclosure complaint on the also-historic Kaufman Astoria Studios in Queens, N.Y., home to “Sesame Street” and “Succession.”
Gregg Bilson sold ISS Props, the Sunland-based company his father founded in 1977, to Manhattan Beach Studios, part of Hackman Capital Partners, five years ago, staying on as CEO to help run and expand the company.
After 40 years in the business, he retired last August with a little more than a year and a half left on his contract.
Bilson now sees himself as a Hollywood relic.
“Many of my contemporaries and I have had conversations where we say we saw the best of the film and TV industry when it was an art form,” Bilson said. “It will never be the same.”
Primm Valley Resorts, the last full-time casino among a cluster of three off Interstate 15 in Primm, at the California-Nevada border, is permanently closing, according to a termination notice sent to employees on Tuesday.
An email to Primm Valley Resorts owner Affinity Gaming was not immediately returned.
Primm Valley was the last of three operating casino resorts in Primm, formerly known as State Line. The castle-shaped Whiskey Pete’s opened in 1977, followed by Primm Valley in 1990 and Buffalo Bill’s in 1994.
In a letter to the Clark County Board of Commissioners, Erin Barnett, Affinity’s vice president and general counsel, wrote in October 2024 that “traffic at the state line has proved to be heavily weighted towards weekend activity and is insufficient to support three full-time casino properties.”
Along with Primm Valley Resorts, Primadonna Co. LLC, owned by Affinity Gaming, is closing the Primm Center gas station and the Flying J truck stop located at Whiskey Pete’s; that casino closed in December 2024.
The termination notice comes nearly a year after Affinity Gaming ended 24/7 operations at Buffalo Bill’s Resort on July 6. The casino opened on days in which its concert venue, the Star of the Desert Arena, hosted special events.
Lights glow on the Buffalo Bill’s Resort and Casino sign on July 6, 2025, in Primm, Nev.
The notice informed employees “this action is expected to result in the permanent termination of employment for all employees at these locations.”
As late as September, Primm Valley Resorts emailed media members promoting renovated rooms and signature experiences at its final resort.
Primm once shined as one of Nevada’s more popular gambling resorts. The three-casino complex served as a less expensive, less flashy, slightly more kitschy alternative to Las Vegas that benefited from being a good 45 minutes closer to Los Angeles than Sin City.
Several factors have contributed to Primm’s slow decline, including the COVID pandemic and increased competition from casinos popping up on tribal lands in California.
Those newer casinos are easier to get to than Primm from key Southern California population centers, reducing the value proposition.
