Warner Bros. Discovery reported a $148 million loss in the third quarter, hitting a sour note as the company began fielding interest from would-be buyers as Hollywood braces for a transforming deal.
Earnings for the entertainment company that includes HBO, CNN and the Warner Bros. film and TV studios fell short of analyst expectations. A year ago, the company reported profit of $135 million for the third quarter.
Revenue of $9.05 billion declined 6% from the year-ago period. The company swung to a loss of 6 cents a share, compared to last year’s earnings of 5 cents a share.
Still, Chief Executive David Zaslav spent much of Thursday’s call with analysts touting his company’s underlying strengths — while avoided giving details about the company’s sale.
“It’s fair to say that we have an active process underway,” Zaslav said.
Warner Bros. Discovery on Thursday reiterated it is forging ahead with previously announced plans to split into two separate entities by next spring. However, the Warner board acknowledged last month that it was also entertaining offers for the entire company — or its parts — after David Ellison’s Paramount expressed its interest with formal bids.
Paramount has made three offers, including a $58 billion in cash and stock for all of Warner Bros. Discovery. That bid would pay Warner stockholders $23.50 a share.
The Ellison family appears determined to win one of Hollywood’s most storied entertainment companies to pair with Paramount, which the Ellisons and RedBird Capital Partners acquired in August.
But Warner Bros. Discovery’s board, including Zaslav, voted unanimously to reject Paramount’s offers and instead opened the auction to other bidders, which is expected to lead to the firm changing hands for the third time in a decade.
Board members are betting the company, which has shown flickers of a turnaround, is worth more than the offers on the table. Despite its rocky third-quarter results, Warner’s stock held its ground in early morning trading at around $22.60 a share.
“Overall we are very bullish,” Zaslav said of the company’s business prospects.
“When you look at our films like ‘Superman,’ ‘Weapons’ and ‘One Battle After Another,’ the global reach of HBO Max and the diversity of our network’s offerings, we’ve managed to bring the best, most treasured traditions of Warner Bros. forward into a new era of entertainment and [a] new media landscape,” he said.
But the company’s results underscored its business challenges.
The studio witnessed a major decline in advertising revenue in the third quarter, reporting $1.41 billion, down 16% from the previous year, which executives attributed to declines in the audience for its domestic linear channels, including CNN, TNT and TLC.
Distribution revenue also took a hit, as the company reported sales of $4.7 billion, a decrease of 4% compared to last year.
Studio revenue increased 24% to $3.3 billion, powered by the success of DC Studios’ “Superman,” horror flick “Weapons” and the latest installment of “The Conjuring.” But even those box office wins couldn’t totally offset shortfalls in other areas of its content business.
Last year, the company was able to sub-license its rights to broadcast the Olympics in Europe, which pushed content revenue to $2.72 billion. But this year, revenue was down 3% to $2.65 billion.
Burbank-based Warner Bros. has had a string of success in theaters, with nine films opening at the top spot globally at the box office. The studio recently surpassed $4 billion in worldwide box office revenue, making it the first studio to do so this year. Warner Bros. last achieved that milestone in 2019.
Zaslav would like to continue with Warner’s break-up plans, which were announced last June.
The move would allow him to stay on to manage a smaller Hollywood-focused entity made up of the Warner Bros. studios, HBO, streaming service HBO Max and the company’s vast library, which includes Harry Potter movies and award-winning television shows such as “The Pitt.”
The company’s large portfolio of cable channels, including HGTV, Food Network and Cartoon Network, would become Discovery Global and operate independently.
Beyond Paramount, Philadelphia-based Comcast, Netflix and Amazon have expressed interest in considering buying parts of the company.
The company said its third quarter loss of $148 million was the result of a $1.3 billion expense, including restructuring costs.
Jon Stewart’s biting satire may have made his new bosses squirm, but they went ahead and extended the comedian’s run on Comedy Central through December 2026.
The channel’s parent company, Paramount, announced Monday that Stewart will continue to host “The Daily Show” on Monday nights and serve as an executive producer through the end of next year.
Members of the show’s news team will continue to share Tuesday through Thursday hosting duties. Terms of the contract were not disclosed.
“Jon Stewart continues to elevate the genre he created. His return is an ongoing commitment to the incisive comedy and sharp commentary that define The Daily Show,” Ari Pearce, Comedy Central’s manager said in a prepared statement. “We’re proud to support Jon and the extraordinary news team.”
Stewart’s contract was re-upped nearly four months after Paramount-owned sister network CBS notified Stephen Colbert, who rose to fame on “The Daily Show,” that it was dumping his late night show at the end of the season. The cancelation was revealed days after Colbert lambasted a $16 million settlement Paramount agreed to pay President Trump to end a lawsuit over edits to “60 Minutes.” Colbert called the arrangement “a big fat bribe.”
Paramount settled the Trump suit to win approval from the Trump administration of its sale to David Ellison’s Skydance Media and RedBird Capital Partners. CBS has said the reason for Colbert’s cancellation was financial, not political, although many people have expressed doubts.
Ellison took ownership of Paramount in August. Stewart has joked that he, too, might be tossed as the company tries to reposition itself to the political center.
Last week, the company began a deep round of layoffs, cutting 1,000 employees with plans to terminate another 1,000 in the coming weeks, in an effort to trim its workforce by 10%.
After a nine-year absence, Stewart returned as a host in February 2024. He had helmed the show for 16 years before taking a break in 2015. His current contract was expiring.
The show was hosted by Trevor Noah until 2022, when he stepped down. That prompted a rotation of guest hosts, including Kal Penn, Charlamagne tha God, Sarah Silverman and Michelle Wolf.
Last month, during a conversation with the New Yorker at a cultural festival, Stewart was asked whether he might stick around longer. “We’re working on staying,” Stewart told the New Yorker’s David Remnick.
The rotation of “The Daily Show” hosts also will include Ronny Chieng, Josh Johnson, Jordan Klepper, Michael Kosta, and Desi Lydic with Troy Iwata and Grace Kuhlenschmidt.
Paramount Chairman David Ellison’s latest offer to buy Warner Bros. Discovery contained a twist:
Should Paramount, backed by tech billionaire Larry Ellison, pull off the purchase, Warner Bros. Discovery Chief Executive David Zaslav could stay on to help lead the combined enterprise.
“They’re sweetening the pot,” Paul Hardart, a professor at New York University’s Stern School of Business, said of the Ellison family. “It just shows all the little arrows in their quiver they’re using to try to push this deal.”
David Ellison’ unexpected olive branch to Zaslav was contained in a letter this month to Warner Bros. Discovery’s board that offered $58 billion in cash and stock for the entire company. The move underscores the family’s determination to win the entertainment company that includes HBO, CNN and Warner Bros. film and television studios — and an obstacle in their path.
After hustling for decades to get to the big stage, Zaslav, 65, isn’t ready to relinquish the reins. He’s eager to prove critics wrong and complete a turnaround after three painful years of setbacks and cost cuts to reduce the company’s mountain of debt.
Warner Bros. Discovery board members, including Zaslav, have unanimously voted to reject Paramount’s three bids, viewing them as too low and not in the best interest of shareholders, according to two people close to the company who were not authorized to comment.
The board supports Zaslav’s desire to forge ahead with a planned split of the company next spring. But it also has opened the auction to other potential suitors, which is expected to lead to the firm changing hands for the third time in a decade.
Representatives of Zaslav, Warner Bros. Discovery and Paramount declined to comment.
David Ellison’s audacious offer is being guaranteed by his father, Larry Ellison, the world’s second richest man with a net worth that exceeds $340 billion. The Ellisons’ proposal includes paying 80% cash to Warner shareholders and the rest in stock, according to two people familiar with the matter who weren’t authorized to comment. The most recent offer was $23.50 a share.
The Ellisons began their campaign last month, just weeks after David Ellison’s Skydance Media, along with RedBird Capital Partners, picked up the keys to Paramount, which includes CBS, MTV, Nickelodeon and the Melrose Avenue film studio, which has been depleted by decades of underinvestment.
The proposed addition of the more vibrant Warner Bros. would give the Ellisons an unparalleled entertainment portfolio with DC Comics including Superman, “Top Gun,” Scooby-Doo, Harry Potter, “The Matrix” and “The Gilded Age.”
The family would control streaming services HBO Max and Paramount+, nearly three dozen cable channels, including HGTV, Food Network and TBS, and two legacy news operations — CNN and CBS News.
It would also accelerate the trend of uber billionaires, including Amazon’s Jeff Bezos and SpaceX’s Elon Musk, of owning prominent news, entertainment and social media platforms. Larry Ellison also is part of a U.S.-based consortium lined up by President Trump to buy TikTok from its Chinese owners.
“If a trade deal with China is imminent, and TikTok would be aligned, then it would create a new media colossus, the likes of which we haven’t seen,” said veteran executive Jonathan Miller, chief executive of the investment firm Integrated Media Co.
Paramount is in talks to merge with Warner Bros. Discovery.
(Al Seib / Los Angeles Times; Dania Maxwell / Los Angeles Times)
The drama is unfolding as Paramount on Wednesday slashed 1,000 workers in the first round of cuts since Ellison took over. A second wave of layoffs — affecting another 1,000 workers — is expected in the coming weeks, helping fulfill a promise made to Wall Street by Ellison and Redbird to reduce expenses by more than $2 billion.
Combining with Warner Bros. would bring more layoffs, analysts said, and a potential hollowing out of a historic studio.
“Merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth,” the Writers Guild of America West, said last week in a statement in opposition to the proposed unification. “Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition.”
Critics point to a long list of media merger misfires, including the disastrous AOL Time Warner merger a quarter century ago. Some critics contend Walt Disney Co.’s $71-billion purchase of much of Rupert Murdoch’s entertainment holdings didn’t live up to expectations, and AT&T whiffed its $85-billion deal for Time Warner, handing it to Zaslav’s Discovery four years later for $43 billion.
The New York native, a descendant of Jewish immigrants from Poland and Ukraine, had spent 16 years running the Discovery cable channel group, a respectable business, but one that lacked Hollywood flash.
Zaslav grew up on the fringe of New York City, in Ramapo, N.Y., where he’d been a promising tennis player who proudly wore his athletic gear to middle school. Tennis was his identity — until he started getting beat by players he used to whip.
Zaslav’s coach sat him down, bluntly saying he wasn’t putting in the work.
“I vowed that day I would never be outworked again,” Zaslav said during a 2023 commencement address to Boston University graduates. Underlings have long marveled at his indefatigable work ethic.
The speech was meant to be his triumphant return to his alma mater. Zaslav had finally made it to Hollywood, where he was now holding court in an exquisite corner office that had belonged to studio founder Jack Warner.
Zaslav had big plans to turn around Warner Bros. But, in Boston, he suffered a beatdown.
The Writers Guild of America had just gone on strike against his and other Hollywood studios. Protesters heckled Zaslav. Students booed. A plane flew overhead, waving a banner that read: “David Zaslav Pay Your Writers.”
He had assumed control a year earlier, in April 2022, just as Wall Street soured on media companies that were spending wildly to build streaming services to compete with Netflix.
Zaslav inherited a venture bleeding billions of dollars to get into streaming. The merger itself saddled the company with $55 billion of debt. Warner’s stock plummeted.
He and his team spent the first few years slashing divisions, canceling TV programs and contracts, and shelving movies. To further reduce expenses, the company laid off thousands of workers. Hollywood soon viewed Zaslav with derision.
It didn’t help that Zaslav has long been one of the most handsomely compensated executives in America.
There were high-profile stumbles, including jettisoning staff of the tiny Turner Classic Movies channel and an ill-conceived rebrand of its streamer to “Max” before changing the name back to HBO Max.
“The Warner Bros. Discovery merger was a well-intended failure,” Hardart said. “The cable subscriber base shrank at a faster rate than most people had forecast. … Thousands have lost their jobs, the HBO brand has been reimagined and reimagined, films have been mothballed and the future of the Warner Bros. studio is today uncertain.”
Warner Bros. Discovery paid down $20 billion in debt, but $35 billion remains. The debt load has nearly suffocated the company, making it a vulnerable target.
“There was a lot of fixing that David Zaslav and his team had to do,” Bank of America media analyst Jessica Reif Ehrlich said in a recent interview. “It’s been three years of incredibly heavy lifting — but that’s pretty much done now.”
In a note to investors last week, Ehrlich wrote Warner’s strong franchises, including DC Comics, and its voluminous library make it “an extremely attractive potential acquisition target,” one that could fetch $30 a share. Her firm carries a “buy” rating on the stock.
Warner Bros. Discovery Chief Executive David Zaslav and AT&T Chief Executive John Stankey shake hands on May 17, 2021, in New York City.
(Preston Bradford / Discovery)
Last summer, Zaslav announced plans to split the company in two halves.
Zaslav would run Warner Bros., which would consist of the Burbank studios, HBO and the HBO Max streaming service. Longtime lieutenant Gunnar Wiedenfels would helm Discovery Global, made up of the firm’s international businesses and basic cable channels, which face an uncertain future in the streaming era.
Those who know Zaslav believe he’s working to stave off the Ellison takeover, in part, because he wants the chance to bring the company back to its glory, which would ultimately make it more valuable for its investors and prospective buyers.
For Warner management, that’s part of the rub. The Ellisons showed up just as the company was displaying signs of a turnaround, including a hot streak by Warner Bros. that includes “A Minecraft Movie,” Ryan Coogler’s “Sinners,” James Gunn’s “Superman,” Formula One adventure “F1: The Movie,” and horror flick “Weapons.”
Larry, from left, Megan and David Ellison attend the premiere of Paramount Pictures’ “Terminator Genisys” at Dolby Theatre on June 28, 2015.
(Lester Cohen / WireImage)
Ellison’s bidding was designed to thwart Warner’s planned corporate breakup.
For now, analysts said, Zaslav and the Warner board’s current strategy is solid because they have effectively driven up the stock price, which has doubled to $21 a share since the Ellison’s interest became known in mid-September.
“They are doing the right thing,” Hardart said. “In any sale, you try to beat the bushes and get as many people interested. But at some point the board is going to have to make a decision.”
Added one investor: “They’ve gotten Paramount-Skydance to bid against itself, and that only goes so far.”
Analysts expect Philadelphia giant Comcast, owner of NBCUniversal, and potentially Netflix, Apple or Amazon to take a look at the company’s studio, library and streaming assets.
But many see the Ellison’s Skydance as having the edge.
Paramount, in its recent letter to the Warner board, argued that it was the best and most logical buyer.
“What Skydance offers WBD, in many ways, is what it offered Paramount: The ability to be aggressive and push all aspects of the business in a way that most people or companies that have less capital just can’t do,” Miller said. “They are deploying real capital, and they are being the most aggressive folks in the industry right now.”
“CBS Saturday Morning” co-hosts Michelle Miller and Dana Jacobson are among the nearly 100 news division employees cut as part of a massive round of layoffs at parent company Paramount.
The program is getting a new format that will align it closer to the weekday show “CBS Mornings,” according to people familiar with the plans who were not authorized to comment publicly. Brian Applegate, the executive producer of the Saturday program, is out as well.
CBS has also canceled “CBS Mornings Plus,” an extension of its morning program that ran in several markets including Los Angeles. “CBS Evening News Plus,” a streaming program anchored by John Dickerson is also being shuttered. Dickerson announced Monday he is leaving the network.
Several correspondents have already been laid off, including Debora Patta, who covered the Gaza war for the network; Janet Shamlian; and Nikki Battiste. A CBS News representative declined comment.
The cuts are part of parent company Paramount’s reduction of 1,000 employees across all of its divisions. New owners Skydance Media are looking to reduce cots by $2 billion across the company, with a second round of cuts expected later this year.
Miller was a prolific correspondent for CBS News in addition to her Saturday co-host duties, contributing pieces to “CBS Sunday Morning” and “48 Hours.” She also was a frequent fill-in for Gayle King on the weekday morning program.
Miller, 52, is a Los Angeles native and the daughter of Dr. Ross Miller, a trauma surgeon who served on the city council in Compton. She worked at the Los Angeles Times in the early 1990s.
Miller covered a wide range of stories at CBS News, and paid special attention to issues or racism and social injustice. She is married to Marc Morial, the former mayor of New Orleans who is currently head of the National Urban League.
Jacobson, 52 has been with CBS News since 2015. She previously spent a decade at ESPN, where she appeared on “First Take” and “SportsCenter.”
Miller and Jacobson have served as co-hosts of “CBS Saturday Morning” since 2018 when it was called “CBS This Morning Saturday.”
Paramount on Wednesday was expected to cut 1,000 employees, the first wave of a deep staff reduction planned since David Ellison took the helm of the entertainment company in August.
People familiar with the matter but not authorized to comment said the layoffs will be felt throughout the company, including at CBS, CBS News, Comedy Central and other cable channels as well as the historic Melrose Avenue film studio.
Another 1,000 jobs are expected to be cut at a later date, bringing the total reduction to about 10% of Paramount’s workforce, sources said.
The move was expected. Paramount’s new owners — Ellison’s Skydance Media and RedBird Capital Partners — had told investors they planned to eliminate more than $2 billion in expenses, and Wednesday’s workforce reduction was a preliminary step toward that goal.
Paramount has been shedding staff for years.
More than 800 people — or about 3.5% of the company’s workforce — were laid off in June, prior to the Ellison family takeover. At the time, Paramount’s management attributed the cuts to the decline of cable television subscriptions and an increased emphasis on bulking up its streaming TV business. In 2024, the company eliminated 2,000 positions, or 15% of its staff.
The Paramount layoffs are the latest sign of contraction across the entertainment and tech sectors.
Amazon said this week it was eliminating roughly 14,000 corporate jobs amid its embrace of artificial intelligence to perform more functions. Last week, Facebook parent company Meta disclosed that it was cutting 600 jobs in its AI division.
Last week, cable and broadband provider Charter Corp., which operates the Spectrum service, eliminated 1,200 management jobs around the country.
Los Angeles’ production economy in particular has been roiled by a falloff in local filming and cost-cutting at major media companies.
As of August, about 112,000 people were employed in the Los Angeles region’s motion picture and sound recording industries — the main category for film and television production. The data does not include everyone who works in the entertainment industry, such as those who work as independent contractors.
That was roughly flat compared with the previous year, and down 27% compared with 2022 levels, when about 154,000 people were employed locally in the industry, according to data from the U.S. Bureau of Labor Statistics.
The industry has struggled to rebound since the 2023 strikes by writers and actors, which led to a sharp pullback in studio spending following the era of so-called “peak TV,” when studios dramatically increased the pipeline of shows to build streaming platforms.
“You saw a considerable drop-off from the strikes and the aftermath,” said Kevin Klowden, an executive director at Milken Institute Finance. “The question is, at what point do these workers exit the industry entirely?”
Local film industry officials are expecting a production boost and an increase in work after California bolstered its film and television tax credits.
But Southern California’s bedrock industry is confronting other challenges, including shifting consumer habits and competition from social media platforms like YouTube and TikTok.
“There is a larger concern in terms of the financial health of all the major operations in Hollywood,” Klowden said. “There’s a real concern about that level of competition, and what it means.”
One of the biggest players in television is changing teams.
“Yellowstone” creator Taylor Sheridan will leave his longtime home at Paramount and move his overall deal to rival NBCUniversal in 2029, according to a person familiar with the matter who was not authorized to comment.
Sheridan’s deal with Paramount concludes at the end of 2028. Financial terms were not disclosed.
The move is a blow to Paramount, which has focused on wooing high-profile talent to the studio since its takeover by tech scion David Ellison and his Skydance Media.
The media company — which is now angling to buy Warner Bros. Discovery — has shelled out massive sums to acquire sports media rights, keep the iconic “South Park” cartoon and lure filmmakers away from competitors, including “Stranger Things” creators Matt and Ross Duffer and “A Compete Unknown” director James Mangold.
The NBC deal, first reported by Puck, will take effect in 2029.
Sheridan’s universe of “Yellowstone” shows, in particular, has been a key franchise for Paramount. Company executives specifically mentioned the creator’s shows as a “cornerstone” of the Paramount+ streaming service during a luncheon with reporters this summer.
The western-themed show, which debuted as a cable series in 2018, became one of the hottest scripted series on TV, a remarkable turnaround from its early days when “Yellowstone” was passed on by a number of potential homes before landing at Paramount.
The popularity of “Yellowstone” was a boon to Sheridan, leading to spinoffs such as “1923” and other shows from his production company including “Tulsa King,” “Landman” and “Mayor of Kingston.”
Representatives for Paramount and Sheridan did not respond immediately to a request for comment. NBCUniversal declined to comment.
Warner Bros. Discovery has officially acknowledged the company is up for sale, marking the third time in a decade that its storied assets have been on the auction block.
The company’s board announced Tuesday that it has initiated “a review of strategic alternatives … in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.”
The Ellison family, which owns Paramount, started the bidding late last month. With financial backing from his father, Larry Ellison, David Ellison is looking to build an entertainment juggernaut. The family and RedBird Capital Partners finalized their takeover of Paramount in August, and has since made at least one offer for its rival. Paramount wants to buy the entire company, including its basic cable channels that include CNN, TNT, Food Network and HGTV.
Warner Bros. Discovery stock soared 11% Tuesday to more than $20 a share, valuing the company at $50 billion. That’s the highest level since Discovery swallowed the larger WarnerMedia in April 2022.
The company did not disclose the other entities that have expressed interest in buying the company as a whole, or its stable of assets, including premium cable channel HBO, the HBO Max streaming service and the legendary Warner Bros. film and television studio and its campus in Burbank.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Chief Executive David Zaslav said in a statement announcing the strategic review.
“After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets,” he said.
The company last summer unveiled its intention to split into two separate publicly traded entities — an arrangement that most observers saw as the unofficial kickoff of the company’s sale.
That separation process will continue, Warner Bros. Discovery said Tuesday.
The company intended to create two stand-alone entities. One would include the Warner Bros. studio and its expansive library of shows and movies, as well as the HBO Max streaming service. Zaslav was planning to run that enterprise.
The second company, Discovery Global, would comprise the basic cable channels and international operations. Chief Financial Officer Gunnar Wiedenfels would lead that operation.
“We view this as a move to initiate the entire bidding process now, for all bidders, even though not every bidder may be interested in all of WBD,” Raymond James analysts Ric Prentiss and Brent Penter wrote in a Tuesday note to investors.
“WBD is telling other bidders they can bid now instead of waiting for the split, or perhaps they even need to bid now since waiting may prove to be too late,” the analysts said.
Warner Bros. Discovery board intends to “evaluate a broad range of strategic options,” including “an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders,” it said in a statement.
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” Warner Bros. Discovery Chair Samuel A. Di Piazza, Jr., said in the statement. “We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
The company did not set a deadline or timetable for the strategic alternatives review, although it had previously said the separation into two distinct companies — Warner Bros. and Discovery Global — would be complete by April.
TD Cowen media analyst Doug Creutz indicated Tuesday’s announcement was simply a formality because investors were well aware the company was in play.
“We continue to think a transaction with [Paramount] … is reasonably likely; we are more skeptical that other, more attractive bidders will emerge,” Creutz wrote.
The announcement hit as Warner Bros. Discovery employees already are nervous about the process and the proposed Ellison takeover, which observers believe would spark a massive consolidation and the elimination of hundreds more jobs.
Some already were suffering from deal fatigue as many are veterans of the company’s two previous sales.
In October 2016, the company, then known as Time Warner Inc., announced its sale to phone giant AT&T. President Trump, who was first elected the following month, strenuously objected to the merger. The government challenged the union, and it took nearly two years to win federal approval. The AT&T years were turbulent. The company restructured, then spent billions to build the HBO Max streaming service.
After three years, AT&T threw in the towel after lining up Zaslav, who had long managed the much smaller Discovery. The April 2022 sale to Discovery burdened the company with more than $50 billion in debt.
Since then, Zaslav and his team have tried to streamline the operations, leading to thousands of layoffs. The company’s debt now hovers around $35 billion.
Allen & Company, J.P. Morgan and Evercore have been retained as financial advisors to Warner Bros. Discovery. Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
“South Park” is bidding adieu to its short-lived but buzzy Season 27.
The sixth episode of the year, which airs Wednesday on Comedy Central, marks the first episode of Season 28, a spokesperson from the network confirmed to The Times. (The episode will stream on Paramount+ Thursday.)
The reason behind the decision to end Season 27, which was originally expected to have 10 episodes, is unclear. But fans of the long-running satire will still get four additional episodes this year, if “South Park” co-creator Matt Stone and Trey Parker stick to the schedule they outlined. Fans had been speculating about the start of a new season after seeing television listings that coded Wednesday’s episode as the first of Season 28.
The new episode, titled “Twisted Christian,” follows a possessed Cartman, who “may be the key to stopping the Antichrist,” according its brief description. A short teaser also shows the students of South Park Elementary engaging with the viral “67” slang, an essentially meaningless phrase that has taken over Generation Alpha.
The recent episodes have been drawing strong viewership and have, as always, poked fun at topical issues and political figures including President Trump, immigration raids, tariffs and the FCC. Even Paramount, which bought the global streaming rights to “South Park” this summer in a $1.5-billion deal, has been the butt of several jokes.
Season 27 had an unusual cadence of episodes, with the first two arriving on a weekly schedule, then biweekly before the arrival of the most recent episode (and the apparent finale of the season), which aired three weeks later on Sept. 25.
The second episode drew criticism for its parody of Charlie Kirk, the slain political influencer, despite the episode airing weeks before his death. Comedy Central, which is owned by Paramount, announced it will not air reruns of the second episode of the latest season after Kirk was fatally shot Sept. 10 in Utah. The episode can still be found on Paramount+.
The final episode of Season 27 was the first to air after Kirk’s death, but Parker and Stone told the Denver Post the delay was unrelated to its content: “No one pulled the episode, no one censored us, and you know we’d say so if true.” The pair issued a statement on Sept. 17 saying the episode wasn’t finished in time.
Future episodes of “South Park” will air every two weeks through Dec. 10.
Times TV editor Maira Garcia contributed to this report.
Paramount, backed by billionaire Larry Ellison and his family, has officially opened the bidding for rival Warner Bros. Discovery — a potential massive merger that would dramatically change Hollywood.
Warner Bros. Discovery’s board rejected Paramount’s initial bid of about $20 a share, but talks are continuing, according to two people close to the companies who were not authorized to speak publicly.
One of the knowledgeable sources said Paramount was preparing a second bid.
Warner Bros. Discovery owns HBO, CNN, TBS, Food Network, HGTV and the prolific Warner Bros. movie and television studio in Burbank.
Ellison, one of the world’s richest men, is committed to helping his 42-year-old son, David, pull off the industry-reshaping acquisition and has agreed to help finance the bid, two people close to the situation said.
The younger Ellison, who entered the movie business 15 years ago by launching his Skydance Media production company, was catapulted into the major leagues this summer with the Ellison family’s purchase of Paramount’s controlling stake.
Since then, David Ellison and his team have made bold moves to help Paramount shake more than a decade of doldrums. Buying Warner Bros. Discovery would be their most audacious move yet. The merger would lead to the elimination of one of the original Hollywood film studios, and could see the consolidation of CNN with Paramount-owned CBS News.
Representatives for Paramount and Warner Bros. Discovery declined to comment.
Industry veterans were stunned by the speed of Paramount’s play for Warner Bros. Discovery, noting that top executives had begun working on the bid even as they were putting finishing touches on the Paramount takeover.
One of Paramount’s top executives is a former Goldman Sachs banker, Andy Gordon, who was a ranking member of RedBird Capital Partners, the private equity firm that has teamed up with the Ellisons and has a significant stake in Paramount.
Paramount’s interest prompted stocks of both companies to soar, driving up the market value for Warner Bros. Discovery.
Paramount’s offer of $20 a share for Warner Bros. Discovery was less than what some analysts and sources believe the company’s parts are worth, leading the Warner Bros. Discovery board to rebuff the offer, sources said.
But many believe that Paramount needs more content to better compete in a landscape that’s dominated by tech giants such as Netflix and Amazon.
Paramount has reason to move quickly.
Warner Bros. Discovery had previously announced that it was planning to divide its assets into two companies by next April. One company, Warner Bros., would be made up of HBO, the HBO Max streaming service and the Burbank-based movie and television studios. Current Chief Executive David Zaslav would run that enterprise.
The other arm would be called Discovery Global and consist of the linear cable television channels, which have seen their fortunes fall with consumers’ shift to streaming.
The Paramount bid was seen as an attempt to slip in under the wire because other large companies, including Amazon, Apple and Netflix, may have been interested in buying the studios, streaming service and leafy studio lot in Burbank.
However, Netflix’s co-chief executive Greg Peters appeared to downplay Netflix’s interest during an appearance last week at the Bloomberg Screentime media conference. “We come from a deep heritage of being builders rather than buyers,” Peters said.
Some analysts believe Paramount’s proposed takeover of Warner Bros. Discovery could ultimately prevail because Zaslav and his team have made huge cuts during the past three years to get the various businesses profitable after buying the company from AT&T, which left the company burdened with a heavy debt load. The company has paid down billions of dollars of debt, but still carries nearly $35 billion of debt on its books.
Others point to Warner Bros.’ recent successes at the box office as evidence that Paramount is offering too little.
Despite the tumult at the corporate level, Warner Bros.’ film studio has had a successful year. Its fortunes turned around in April with the release of “A Minecraft Movie,” which grossed nearly $958 million worldwide, followed by a string of hits including Ryan Coogler’s “Sinners,” James Gunn’s “Superman” and horror flick “Weapons.”
Last week at Bloomberg’s Screentime media conference, Ellison declined to comment on Paramount’s pursuit of Warner Bros. or even whether his company had already made a bid. But he did touch briefly on consolidation in Hollywood, saying, “Ironically, it was David Zaslav last year who said that consolidation in the media business is important.”
“There are a lot of options out there,” he added, but declined to elaborate.
After news of Paramount’s interest surfaced, Warner Bros. Discovery‘s stock jumped more than 30%. It climbed as much as $20 a share, but closed Friday at $17.10, down 3.2%.
Paramount also has seen its stock surge by about 12%. Shares finished Friday at $17, down 5.4%
Warner Bros. Discovery is now valued at $42 billion. Paramount is considerably smaller, worth about $18.5 billion.
Billionaire Larry Ellison ponied up the money for his family to acquire the controlling stake in Paramount two months ago, and the tech titan would need to write another huge check should Paramount buy Warner Bros. Discovery.
So, in Hollywood circles, the question has been: How involved is the elder Ellison in Paramount’s strategy and operations?
Paramount Chief Executive David Ellison said he speaks with his father every day, but he drew an important distinction:
“Look, I run the company day to day. Make no mistake about that,” David Ellison said Thursday at Bloomberg’s Screentime media conference in Hollywood, adding that his father had been a “phenomenal” mentor and “we couldn’t have a better relationship.”
“He is the largest shareholder in the business,” Ellison said. “What’s important for everybody to know is the way he approaches this is: How do we maximize value for our shareholders? … I think he’s best in the world for doing that.”
Since the Ellison family and RedBird Capital Partners acquired Paramount in August, its stock is up more than 50%. Much of the run-up came last month after news leaked that Paramount was interested in acquiring Warner Bros. Discovery, which owns CNN, TBS, Food Network and one of Hollywood’s most prolific film and television studios.
Ellison refused to comment on Paramount’s pursuit of Warner Bros. Discovery or whether his team had already made a bid.
But he did shed light on the business strategy behind any pursuit, while trying to tamp down fears that another big merger would result in more cost-cutting, more job losses and a reduction in content spending.
“The way we approach everything is, first and foremost: What’s good for the talent community, what’s good for our shareholders and value creation, and what’s good for basically storytelling at large?” Ellison said. “We’re looking at actually producing more movies [and] more television series … because you need that content.”
Paramount staffers are bracing for a massive workforce reduction next month, part of the company’s goal of finding more than $2 billion in spending cuts.
The company also invested in the construction of a Texas-based production hub for prolific “Yellowstone” creator Taylor Sheridan and agreed to pay $1.5 billion over five years for streaming rights for “South Park,” the Comedy Central cartoon. And Paramount lured Matt and Ross Duffer, who created “Stranger Things,” away from Netflix with an exclusive four-year television, streaming and film deal.
Warner Bros. Discovery, led by Chief Executive David Zaslav, also has declined to discuss Paramount’s interest, although people close to the company have suggested Zaslav would like to see bidding war.
No other studios have publicly expressed interest and, on Wednesday, Netflix Co-Chief Executive Greg Peters downplayed such speculation.
“We come from a deep heritage of being builders rather than buyers,” Peters said during a separate appearance at the Screentime conference, adding the track record for big mergers was not great.
But Wall Street widely expects more consolidation among entertainment firms.
“Ironically, it was David Zaslav last year who said that consolidation in the media business is important,” Ellison said, adding “there are a lot of options out there.” But he declined to elaborate.
Analysts have speculated that, beyond Paramount, few other media companies have financial firepower to pull off a bid. And Paramount has an “in” that several other media companies, including Brian Roberts’ Comcast, lack: a good relationship with President Trump and his administration.
Trump has called Larry Ellison a good friend. After David Ellison spoke with Trump at a June UFC fight, the previous managers of Paramount got traction in their efforts to settle Trump’s lawsuit over a “60 Minutes” interview last fall with Kamala Harris. Paramount paid $16 million in July to settle the suit and weeks later the Federal Communications Commission approved the Ellison takeover of Paramount.
“We have a good relationship with the administration,” David Ellison said.
About 200 people gathered on Paramount’s Melrose Avenue lot for a screening of “Red Alert,” a four-part scripted drama portraying the deadly Oct. 7 Hamas attack on Israel from the perspective of six victims.
The host of the Sept. 30 event was Paramount Chairman and Chief Executive David Ellison, who shared how he had chatted with Academy Award-nominated producer Lawrence Bender a few weeks earlier at a memorial service for legendary Hollywood power broker Skip Brittenham. That’s where Ellison learned that Bender’s Israeli-backed series, “Red Alert,” needed a home in the U.S.
Ellison quickly volunteered. “It was a fast ‘yes,’ ” he told the group.
On Tuesday, “Red Alert” debuted on the company’s streaming service, Paramount+, marking the second anniversary of the Oct. 7 attack on Israel. The initial Hamas assault left about 1,200 Israelis dead and more than 250 kidnapped.
The high-profile project comes two months after Ellison assumed control of Paramount in an $8-billion buyout by his family, led by billionaire and Oracle founder Larry Ellison, and private equity firm RedBird Capital Partners.
Since the deal closed Aug. 7, David Ellison has moved to position the company slightly right of the political center, while also taking on polarizing issues. The scion has been unafraid to challenge those in Hollywood who’ve called for a boycott of Israel.
More than two years after the Oct. 7 attack, a deep divide remains in Hollywood over the subsequent Israel-Hamas war.
The effort called for a boycott of Israeli film festivals, institutions and projects to help spur an end to the war in Gaza. The campaign was designed in the vein of South African boycotts decades ago, which proved to be instrumental in ending apartheid, that country’s racial segregation.
No other major studio followed Paramount.
In its Sept. 12 statement, Paramount said it disagreed with the Film Workers call to avoid film screenings or to work with Israeli film institutions.
“At Paramount, we believe in the power of storytelling to connect and inspire people, promote mutual understanding, and preserve the moments, ideas, and events that shape the world we share,” the company said. “Silencing individual creative artists based on their nationality does not promote better understanding or advance the cause of peace.”
The Film Workers group accused Paramount of misrepresenting the intent of its pledge, saying it did not target individual filmmakers.
But critics counter that filmmakers who engage with Israeli cultural institutions would likely fall under the ban.
More than 1,200 industry players including actors Mayim Bialik and Liev Schreiber and Paramount board member Sherry Lansing signed an opposing open letter released by the nonprofit organization Creative Community For Peace that accuses the Film Workers for Palestine of advocating “arbitrary censorship and the erasure of art.”
The Palestinian supporters dismissed the characterization. “The Film Workers Pledge to End Complicity is an explicitly anti-racist and non-violent campaign that is grounded in international law and the moral clarity of a global majority opposed to genocide,” the group said in a statement this week. “It is the first major refusal of the international film industry at large that targets complicit Israeli film institutions and companies.”
“Red Alert” was co-produced by a prominent Israeli production company, Keshet Media Group, and received funding from the Jewish National Fund-USA and the Israel Entertainment Fund. The series premiered last weekend on Israel’s popular television channel Keshet 12. Keshet produced the Hebrew-language series “Prisoners of War” that Showtime later adapted into the award-winning American drama “Homeland.”
During the late September screening at Paramount, Ellison spoke of the need for such projects as “Red Alert” to remember the atrocities as well as stories of survival and heroism.
“We at Paramount, we are here to tell stories that last forever,” Ellison said. “We are not here to debate politics or platforms or to argue about east or west. And ‘Red Alert’ is the very embodiment of that mission, and I couldn’t be prouder to support this series.”
Others in Hollywood have found fault with Israel’s government and its conduct in the Gaza war, which has killed more than 67,000 Palestinians, according to Gaza’s Health Ministry, which does not distinguish between civilians or combatants.
The United Nations, rights groups, experts and many Western governments accuse Israel of committing genocide. Israel denies the charge.
During a May 2024 Simon Wiesenthal Center gala in his honor, WME Group Executive Chairman Ari Emanuel sharply denounced Israel Prime Minister Benjamin Netanyahu and called for his ouster. Emanuel’s remarks were met with cheers and jeers and some attendees walked out.
In his Oscar acceptance speech last year, Jonathan Glazer, director of the Holocaust drama “The Zone of Interest,” asked “Whether the victims of October 7th in Israel or the ongoing attack on Gaza, all the victims of this dehumanization — how do we resist?”
Weeks later, Steven Spielberg called out the rise of antisemitism as well as the ongoing war.
“We can rage against the heinous acts committed by the terrorists of October 7th and also decry the killing of innocent women and children in Gaza,” Spielberg said during an event celebrating the anniversary of the USC Shoah Foundation.
Paramount’s opposition to the Film Workers’ pledge and other recent moves, including buying the Free Press news site for $150 million and installing its founder, journalist Bari Weiss, as the editor in chief at CBS News, has rattled a small group of Paramount employees.
David Ellison recruited Weiss, who has been public about her support for Israel, for the prominent role.
The division was roiled by Paramount’s efforts to settle President Trump’s lawsuit over edits to a “60 Minutes” interview a year ago with then-Vice President Kamala Harris. Paramount this summer agreed to pay $16 million to end Trump’s suit, which 1st Amendment experts viewed as a spurious shakedown.
Weeks later, Trump appointees on the Federal Communications Commission approved the Ellison family’s takeover of Paramount.
The employee group, which calls itself Paramount Employees of Conscience, said they have sent two letters to Paramount leaders in the last month to voice their concerns but have not received a reply. In a statement, the group noted that while Paramount+ was distributing “Red Alert,” the company had not offered “equivalent programming about Palestinian experiences of the genocide in Gaza.”
“How can a company with this supposed creative mission actively ignore, suppress, and silence internal calls for years to champion stories that shed a light on the reality that marginalized and excluded communities, particularly Palestinians, face every day?” the group asked in a Sept. 17 letter addressed to Paramount’s leadership.
Paramount declined to comment.
The group includes about 30 employees, according to one member who asked not to be identified out of fear of retribution.
Paramount employees separately are bracing for a steep round of layoffs, which is expected next month. Ellison’s firm Skydance Media and RedBird promised Wall Street that they would find more than $2 billion in cost cuts at Paramount.
“We know the Ellisons are formidable, powerful and have a lot of resources,” said the Paramount employee. “But we are here to interrupt a culture of silence…. Silence within the industry becomes complicity.”
Paramount has acquired The Free Press, a four-year-old digital news platform, and will make its co-founder Bari Weiss editor-in-chief of CBS News, the company announced Monday.
The official announcement came after months of speculation on the deal and Weiss’ high profile role within the news division. Weiss, 41, will report to Paramount Chief Executive David Ellison, who personally courted the former New York Times journalist.
“We are thrilled to welcome Bari and The Free Press to Paramount and CBS News. Bari is a proven champion of independent, principled journalism, and I am confident her entrepreneurial drive and editorial vision will invigorate CBS News,” Ellison said in a statement. “This move is part of Paramount’s bigger vision to modernize content and the way it connects — directly and passionately — to audiences around the world.”
Paramount said Weiss will “shape editorial policies, champion core values across platforms and lead innovation in how the organization reports and delivers the news.”
The union of The Free Press and CBS News will be one of the most closely watched lab experiments in the modern media era. Weiss has no experience in television or running an editorial operation on the scale of CBS News, which has more than 1,000 employees.
Paramount is paying around $150 million in cash and stock for The Free Press, a feisty, upstart operation that generated attention through opinion pieces and podcasts with a strong point of view. Its favorite targets are the excesses of progressive left and purveyors of so-called “woke” policies.
CBS News is a traditional mass appeal network TV operation with a proud legacy of journalistic excellence and the home of popular franchises “60 Minutes” and “CBS Sunday Morning.” But the division has struggled to deal with the shifts in audience habits brought about by streaming video and social media.
Weiss is a provocateur who famously resigned from her high profile role in the opinion section of the New York Times in 2020, citing bullying by her colleagues and a hostile work environment as the reasons.
Weiss acknowledged the division’s legacy in a note sent to CBS News staffers after her appointment was announced.
“Growing up, CBS was a deep family tradition,” Weiss said. “Whenever i hear the tick, tick, tick or that trumpet fanfare, it sends me right back to our den in Pittsburgh. The opportunity to build on that legacy — and to renew it in an era that so desperately needs it — is an extraordinary privilege.”
Weiss also ascends at a time when Trump has threatened news operations with lawsuits and regulatory action, such as pulling station TV licenses over what he believes is unfair criticism of him and his administration. Paramount agreed to pay $16 million to settle a Trump lawsuit making the dubious claim that a “60 Minutes” interview with Kamala Harris was deceptively edited to aid her 2024 presidential election campaign against him.
CBS News has never had an executive with the title editor-in-chief before naming Weiss to the role. It still has a president — Tom Cibrowski — a former ABC News executive hired earlier this year who will remain in his role and continue to report to to Paramount TV Media President George Cheeks.
In her note, Weiss told her staffers her goal in the coming weeks is to learn “what’s working and what isn’t, and your thoughts on how we can make CBS News the most trusted news organization in America and the world. I’ll approach it the way any reporter would — with an open mind, a fresh notebook, and an urgent deadline.”
The Free Press, which has around 170,000 paid subscribers, will continue as its own independent brand, with its own podcasts and live events business.
The Ellison era of Paramount was barely a month old when another major potential Hollywood merger appeared on the horizon.
Last week the share prices of Paramount and Warner Bros. Discovery surged following reports that the former was preparing a bid to take over the latter with a mostly cash offer backed by the Larry Ellison family. This would come a remarkably short time after Skydance Media, the production company founded by Larry’s movie producer son David, combined with Paramount in an $8-billion deal.
A merger of Paramount and Warner Bros. Discovery would have profound ramifications for the media and entertainment industry.
It would consolidate two of Hollywood’s oldest studios, Paramount and Warner Bros., in the most significant movie business merger since Walt Disney Co. devoured the entertainment assets of 21st Century Fox in 2019. The film industry has still not recovered from having the 20th Century Fox studio effectively taken off the board.
Additionally, a merger would put two mass-market streaming services, Paramount+ and HBO Max, under the same roof, probably leading to the eventual melding of the two. The Ellison clan’s move would also bring Warner Bros. Discovery’s linear TV networks, including CNN, HGTV, Food Network and TNT, together with Paramount’s Comedy Central, MTV and BET.
All of this would lead to substantial “synergies,” meaning cuts and layoffs, at a time when the job market in entertainment and corporate media is already fraught as the industry reconfigures itself. Paramount is currently bracing for thousands of layoffs as the new owners seek $2 billion in cost savings.
That’s not to mention the changes that would likely come if CNN came under the control of Ellison.
Larry Ellison, the Oracle Corp. billionaire who, depending on the day, is one of the world’s two wealthiest people alongside Elon Musk, is known to be Trump-friendly. The effects of the Ellison reign are already being felt at Paramount’s CBS News, where a former conservative think tank leader was recently appointed as ombudsman and where center-right and staunchly pro-Israel journalist Bari Weiss is expected to have an influential role after Ellison buys her digital media startup the Free Press.
So why is all this happening now, and why so quickly?
After all, the Wall Street Journal first reported Ellison’s interest in Warner Bros. Discovery on Sept. 11, just weeks after the Paramount-Skydance combo closed on Aug. 7.
In a sense, this scenario is unsurprising. Wall Street has been practically begging for another wave of consolidation in the media business, as the audience for theatrical movies shrinks, cord-cutting guts TV profits and more of viewers’ attention turns to YouTube, Netflix and TikTok. Most of the legacy entertainment companies don’t have the streaming firepower to compete. They need to combine to measure up.
But the timing is unexpected, and the unavoidable political considerations are particularly interesting.
With Trump in the White House, the political winds are clearly blowing in the Ellisons’ direction, after the Skydance and RedBird Capital team that bid for Paramount placated federal regulators with promises to eliminate diversity, equity and inclusion initiatives and to make CBS News more balanced, at least in eyes of Trump-appointed FCC Chairman Brendan Carr.
Paramount paid $16 million to settle Trump’s lawsuit over a “60 Minutes” Kamala Harris interview. Ellison and his team want to make a Warner Bros. deal happen when a friendly administration is in power.
Paramount has lately upped its spending, acquiring the rights to UFC (run by Trump friend Dana White), locking down “South Park” for Paramount+ and announcing a deal with Activision to make a “Call of Duty” movie.
Also of note is that Ellison’s group is coming in with an offer for the whole company even as Warner Bros. Discovery Chief Executive David Zaslav prepares to split the media giant into two firms: one with the studios, HBO and streaming businesses, and the other with the TV networks. Putting in a bid now could dissuade other potential buyers that might be interested in just one part.
Apple and Amazon have long been seen as potential bidders for Warner Bros. (Amazon already owns MGM), but it’s unlikely they would want a bunch of TV channels that are on the brink of being orphaned. Analysts have speculated that one reason for the proposed split was to make the studio and streaming assets more attractive to buyers by uncoupling them from the challenged pay-TV business. That split is expected to take place sometime in mid-2026.
Paramount’s bid could also preempt those that may want to do a deal, but are firmly on the Trump administration’s bad side. NBCUniversal owner Comcast Corp.’s CEO Brian Roberts has been the subject of disparaging Trump missives. Comcast is liberal network MSNBC’s parent company (for now). A regulatory review involving a perceived Trump enemy would likely not go well.
Of course, competitive bids could emerge anyway, for example, if a private equity player such as Apollo Global decided to get into the mix after previously expressing interest in Paramount through an unsuccessful team-up with Sony.
Big mergers in media and entertainment often fail, and they’re always disruptive.
Warner Bros. itself was involved in some of the most disastrous deals ever: AT&T’s purchase of Time Warner, and before that, the media company’s ill-fated marriage with AOL. Warner Bros. is now on a box-office hot streak, but that has come after years of Zaslav taking heat for killing projects such as “Batgirl.”
Such deals result in mass layoffs. Movie theater owners will most likely see darker days ahead as they’ll be minus yet another big supplier of blockbusters. Journalist Richard Rushfield, of the Ankler newsletter, demanded that somebody do something to stop it. We’ll see.
An Oracle scion buying two studios one after the other probably wasn’t the tech takeover of Hollywood that many people envisioned. Analysts long assumed that Apple would be the one to buy an entertainment powerhouse — maybe even Disney — despite having not shown any particular inclination for doing so. But though it’s not the Silicon Valley roll-up people anticipated, it may be the one they’re going to get.
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“Demon Slayer: Kimetsu no Yaiba Infinity Castle,” already a big hit in Japan, was the highest-grossing movie domestically, beating new films “Downton Abbey: The Grand Finale,” “The Long Walk” and “Spinal Tap II: The End Continues.”
The film, distributed by Sony Pictures and Crunchyroll, opened with a better-than-expected $70 million in ticket sales from the U.S. and Canada, according to studio estimates, making it the biggest anime opening ever. It’s also the highest-grossing domestic debut of the year so far for an animated film.
Its global weekend for Sony, which owns the Crunchyroll anime brand and streaming service, totaled $132.1 million, which includes 49 international markets.
Including grosses from Japan, the movie’s worldwide tally has surpassed $450 million, according to Comscore.
The success of “Demon Slayer,” part of a long-running popular franchise and not to be confused with Netflix’s hit “KPop Demon Hunters,” is a relief to theater owners at a time when other genres are struggling, including superheroes, comedies and original animation. It’s the latest evidence of anime’s growing global clout.
Comedian Nate Bargatze didn’t shortchange the Boys & Girls Clubs of America, nor did he kill the Emmys telecast’s ratings on Sunday night.
The 77th Emmy Awards ceremony from the Peacock Theater in Los Angeles delivered an average of 7.42 million viewers on CBS, up 8% from last year’s audience for ABC.
Once among the most-watched live awards shows on television, the Emmy Awards audience declined dramatically over the last decade as most of the series celebrated no longer have the broad reach they did when traditional TV still dominated the culture, reports Stephen Battaglio.
But the audience level appears to have stabilized. Nielsen data shows that ratings for the Emmy Awards grew for the second consecutive year. The figure is the highest since 2021, when the telecast also aired on CBS.
HBO Max’s “The Pitt,” Apple TV+’s “The Studio” and Netflix’s “Adolescence” were big winners.
Film shoots
Finally …
Listen: The music of Le Tigre, just because it rocks. I just started the audiobook of Le Tigre and Bikini Kill frontwoman Kathleen Hanna’s memoir, “Rebel Girl.” Essential for punk rock fans.
Paramount on Friday sharply denounced a proposed boycott of Israeli film institutions by a group that calls itself Film Workers for Palestine and is supported by dozens of Hollywood luminaries.
Earlier this week, the group launched an open letter pledging to withhold support for Israeli film festivals, production companies and other organizations that the group said were involved in “genocide and apartheid against the Palestinian people.”
The letter has been signed by hundreds of individuals, including filmmakers Jonathan Glazer, Ava DuVernay, Yorgos Lanthimos, Emma Stone, Joaquin Phoenix, Rooney Mara, Olivia Colman and Mark Ruffalo.
“As filmmakers, actors, film industry workers, and institutions, we recognize the power of cinema to shape perceptions,” the group wrote. “In this urgent moment of crisis, where many of our governments are enabling the carnage in Gaza, we must do everything we can to address complicity in that unrelenting horror.”
The group pledged “not to screen films, appear at or otherwise work with Israeli film institutions — including festivals, cinemas, broadcasters and production companies,” which have been “implicated” in attacks on Palestinians. The group described its effort as being inspired by filmmakers joining the South African boycott over apartheid, a global campaign decades ago that proved influential in helping overturn the nation’s government.
Paramount, which was acquired last month by the Larry Ellison family and private equity firm RedBird Capital Partners, made clear its opposition to the filmmakers’ campaign.
“We believe in the power of storytelling to connect and inspire people, promote mutual understanding, and preserve the moments, ideas, and events that shape the world we share,” said an emailed statement attributed to the company. “We do not agree with recent efforts to boycott Israeli filmmakers. Silencing individual creative artists based on their nationality does not promote better understanding or advance the cause of peace.”
Paramount is the first studio to state a position on the divisive issue. An insider who was not authorized to speak about the internal debate said Paramount Chief Executive David Ellison and the company’s leadership team felt strongly about the need to speak out in opposition, believing that individuals should not be boycotted based on their nationality.
“The global entertainment industry should be encouraging artists to tell their stories and share their ideas with audiences throughout the world,” Paramount said. “We need more engagement and communication — not less.”
Shares in Warner Bros Discovery surged nearly 30% in New York on Thursday after the Wall Street Journal reported that Paramount Skydance was preparing to buy its rival.
Paramount Skydance’s stock also rose around 16% in daily trading.
The majority cash bid is reportedly for the entire company, including its movie studio and cable networks like HBO and CNN. Warner said late last year that it planned to split into two operating divisions: one focused on cable TV and the other on streaming and studios.
Paramount’s offer is allegedly backed by Oracle’s Larry Ellison, who briefly became the world’s richest person this week, overtaking tech tycoon Elon Musk. The billionaire’s son, David Ellison, runs Paramount Skydance.
The WSJ noted that a bid hasn’t yet been submitted and that plans could still fall apart.
Paramount Skydance’s market value was $19 billion (€16bn) as of Thursday’s close, while that of Warner Bros Discovery was roughly $40bn (€34bn).
Paramount and Warner Bros did not immediately respond to requests for comment regarding reports of the acquisition.
If approved, a merger between the two firms would mark the biggest consolidation in Hollywood since Walt Disney bought the entertainment division of Fox Corp. in 2019.
Scale would allow the new company to compete with the likes of streaming giants Netflix and Disney as the industry is redefined by changes in traditional viewing habits.
Paramount Skydance merger
The report comes just weeks after the finalisation of a $8bn (€7bn) merger between movie giant Paramount and independent film studio Skydance Media.
This acquisition became particularly controversial after it was linked to a legal dispute over a CBS News interview.
In July, Paramount paid $16 million (€14mn) to settle a defamation case against US President Donald Trump. The Republican leader claimed that Paramount’s CBS News in November edited a “60 Minutes” news programme with then-vice president Kamala Harris in a way that was deliberately deceptive.
Paramount said in a statement that the settlement with Trump was “completely separate from, and unrelated to, the Skydance transaction and the FCC approval process”.
Even so, critics of the settlement lambasted it as a veiled bribe to appease Trump and allow the merger to go ahead.
Despite the payout, Paramount’s settlement did not include a statement of apology or regret.
Skydance did, however, declare it would end Paramount’s diversity programmes and appoint an ombudsman to review complaints of bias. Paramount also cancelled the left-leaning Late Show with Stephen Colbert ahead of the merger approval.
Critics viewed the moves as further attempts to win over President Trump, although Paramount denied that the Colbert show was cancelled for political motives.
Warner Bros. Discovery stock jumped more than 25% Thursday morning after a report that the Larry Ellison-backed Paramount was preparing a cash bid to buy the company that owns HBO, CNN and the Warner Bros. studio.
The Ellison family and RedBird Capital Partners acquired Paramount a month ago, and has signaled that it would take bold steps as it tries to rebuild Paramount to its former glory. David Ellison, Larry’s 42-year-old son, serves as chairman and chief executive of Paramount.
The Wall Street Journal reported that Paramount’s bid would be for the entire company, including its movie studio, streaming assets and cable networks. Warner Bros. Discovery is in the process of spinning the cable channels into a separate company, a transaction that Warner Bros. Discovery Chief Executive David Zaslav said would be complete by next April.
Representatives of Paramount and Warner Bros. Discovery declined to comment.
Warner Bros. Discovery stock closed at $12.54 on Wednesday. It had soared to around $16 a share in Thursday mid-day trading.
Paramount Skydance shares also climbed 7% to around $16.30.
Paramount has named Kenneth R. Weinstein, former head of a conservative-leaning Washington think tank, to be ombudsman for CBS News, fulfilling a condition of winning the Trump administration’s approval for an $8-billion merger.
The company announced Monday “that complaints from consumers, employees and others” about CBS News stories will go to Weinstein, who will help determine if remedial action is necessary.
Weinstein, who served as president and chief executive of the Hudson Institute, will report to Jeff Shell, who is president of Paramount under new owner and CEO David Ellison.
Weinstein will address complaints about news coverage in consultation with Shell, CBS President and CEO George Cheeks and CBS News Executive Editor Tom Cibrowski.
Paramount buyer Skydance Media agreed to appoint an ombudsman in order to get regulatory clearance for its acquisition of the media company, which closed in August.
The Federal Communications Commission said Skydance agreed to commit to “viewpoint diversity, nondiscrimination and enhanced localism” in its news coverage when the agency announced its approval of the deal.
“Americans no longer trust the legacy national news media to report fully, accurately, and fairly. It is time for a change,” FCC Chairman Brendan Carr said in a statement at the time of the approval. “That is why I welcome Skydance’s commitment to make significant changes at the once storied CBS broadcast network.”
Under Skydance’s ownership, CBS News has already shown a willingness to respond to Trump White House beefs with its coverage. On Friday the division announced a new policy for its Washington public affairs program “Face the Nation,” which will no longer edit taped interviews.
The policy shift came after U.S. Department of Homeland Security Secretary Kristi Noem complained that her Aug. 31 “Face the Nation” interview, which was trimmed for time, deleted harsh allegations against Kilmar Abrego Garcia, the Maryland man wrongly deported to his native El Salvador. He was returned to the U.S., where he faces deportation efforts.
In addition to his work at the Hudson Institute, where he still holds a chair, Weinstein served on multiple advisory boards including the United States Agency for Global Media when it was known as the Broadcasting Board of Governors. The agency, currently headed on an interim basis by Kari Lake, oversees the funding for government-run media outlets such as Voice of America.
Weinstein also holds a doctorate in government from Harvard University and has taught political theory at Georgetown University and Claremont McKenna College.
“I’ve known [Weinstein] for many years and have respect for his integrity, sound judgment and thoughtful approach to complex issues,” Shell said in a statement. “Ken brings not only a wealth of experience in media and beyond but also a calm measured perspective that makes him exceptionally well-suited to serve as our Ombudsman.”
In one of his first company-wide directives, Paramount Chief Executive David Ellison announced that employees must work in the office five days a week, beginning in January.
In a Thursday email, Ellison outlined the company’s phased-in approach for office attendance — including offering a severance package to Los Angeles- and New York-based vice presidents and lower-ranking employees if they wish to leave the company rather than return to the office.
The move sets the stage for what’s expected to be deep staff cuts later this year. Ellison and his RedBird Capital Partners investors have promised Wall Street more than $2 billion in cost savings as they take over the storied media company, install their own teams and integrate Skydance Media businesses, including video games and animation, into Paramount’s operations. Paramount previously cut several hundred jobs this summer.
Paramount representatives have declined to comment on the pending layoffs beyond saying they hope to achieve the cuts with one large round.
On Thursday, Paramount said it had reached a three-year global film distribution deal with “Dune” studio Legendary, beginning with next year’s “Street Fighter.” Paramount will market and distribute Legendary films throughout the world, except in China, where Legendary East oversees releases.
Financial terms were not disclosed. The deal allows Warner Bros. to continue to distribute some films, including co-productions “Dune: Part Three” in 2026 and “Godzilla x Kong: Supernova” in 2027.
CBS News also is bracing for change. Paramount’s new chief is reportedly in negotiations with journalist Bari Weiss to buy her center-right news site, the Free Press, and join CBS News in an undisclosed role. A Paramount spokesperson on Thursday declined to comment on the talks.
Until now, Paramount staffers were expected to be in the office a couple days a week, but it was not consistently applied, according to people with knowledge of the matter but not authorized to comment.
Ellison is attempting to reset Paramount’s culture after years of under-investment, layoffs and management turmoil. In the email, he wrote the return-to-office directive was aimed at “building a stronger, more connected, and agile organization that can deliver on our goals and compete at the highest level.”
“We have a lot to accomplish and we’re moving fast,” Ellison said. “We need to all be rowing in the same direction. And especially when you’re dealing with a creative business like ours, that begins with being together in person.”
Media companies have had varying policies after the initial “work-from-home” policies imposed at the start of the COVID-19 pandemic nearly five and a half years ago. Sony Pictures Entertainment brought its employees back to the Culver City lot relatively quickly. Disney Chief Executive Bob Iger ordered a return to the office in January 2023, less than two months after he returned to lead the company.
“As I said during our town hall, some of the most formative moments of my life happened in rooms where I was a fly on the wall, listening and learning,” Ellison wrote in his email. “I’ve never seen that happen on Zoom. Being together in-person isn’t just about showing up — it’s about actively engaging with the business, supporting one another and the team’s efforts, and contributing to our shared momentum.”
Times Staff Writer Sam Masunaga contributed to this report.
Walmart will soon expand its streaming offerings to its subscription members, with the retail giant announcing a new partnership with NBCUniversal’s Peacock on Monday.
Starting Sept. 15, Walmart+ subscribers can choose to receive ad-supported versions of Peacock Premium or Paramount+ as part of their membership. Every 90 days, Walmart+ members can switch between the two services.
“The additional option of Peacock Premium adds even more value and more choice to our membership, without raising the price,” said Deepak Maini, senior vice president of Walmart+, in a statement. “This is just one of the many ways we’re evolving Walmart+ to meet the needs and wants of today’s consumer.”
The move could appeal to consumers who feel overwhelmed by the different streaming choices and give them a chance to sample what each platform offers without dealing with additional cost.
Walmart+, which charges $98 for an annual plan, includes free shipping, free same-day delivery on groceries and prescriptions, gas discounts and other benefits. Adding more streaming content could help Bentonville, Ark.-based Walmart compete with Amazon Prime, though Walmart does not invest in original content, unlike the Seattle e-commerce behemoth.
Walmart declined to say how many people subscribe to Walmart+.
In 2020, Walmart launched Walmart+, which competes with Amazon’s $139 annual Prime membership. Prime offers perks such as free shipping and streaming series such as “The Summer I Turned Pretty” and “Reacher,” action movie “The Pickup” and NFL football games.
Last week, Amazon announced that Peacock Premium Plus, the streaming service’s ad-free version, would be available on Prime Video for an additional fee, along with 100 other subscription options in the U.S. Amazon also said it had a multiyear deal for the Peacock app to be available on its Fire TV in the U.S.
Walmart has had a spotty track record on its own streaming efforts and currently does not have its own streaming service or produce its own originals. In 2010, Walmart purchased video-on-demand service Vudu and in 2018 partnered with MGM to create original programming for the platform. The retailer later sold Vudu to Fandango in 2020.
Before that, Walmart launched a web store to sell movie and TV show downloads but shut it down in less than a year after its partner, Hewlett-Packard Co., discontinued the technology for the site after it underperformed.
Trump addressed a new, “sick rumor” about “Late Night with Seth Meyers” that wasn’t a rumor at all. It was another screed against late-night TV.
As the GOP breaks the rules to placate their leader and the Dems play by rules that no longer exist, late-night television is one of the few public platforms left that’s bold enough to challenge President Trump’s policy on a daily basis.
From Jimmy Kimmel to “The Daily Show” to Stephen Colbert (whose contract won’t be renewed by the nervous folks at Paramount), calling out the dangerous actions of the bully in the White House has by default become a public service of late-night TV and its political satirists.
Early Wednesday morning, Trump attempted to spark a new battle against his joke-slinging foes when he took to his own social media site, Truth Social, to address a “sick rumor” that wasn’t a rumor at all.
“Fake News NBC extended the contract of one of the least talented Late Night television hosts out there, Seth Meyers,” Trump wrote. “He has no Ratings, Talent, or Intelligence, and the Personality of an insecure child. So, why would Fake News NBC extend this dope’s contract. I don’t know, but I’ll definitely be finding out!!!”
It will not take Sherlock Holmes, Stephen Miller or even a DOGE flunky to ferret out the truth because the contract was revealed back in May … of 2024. It was hardly a covert operation when NBC extended “Late Night With Seth Meyers” through 2028. “We’re so happy to continue this legacy franchise with Seth at the helm and watch him continue to elevate the success of ‘Late Night,’” announced NBCUniversal Entertainment late-night programming EVP Katie Hockmeyer in a statement.
Meyers is a frequent critic of the current White House administration, and the president has had it out for the comedian ever since Meyers played news anchor on SNL’s “Weekend Update” and Trump played a successful businessman on “The Apprentice.” It was 2011 when Meyers, then head writer of the sketch show, hosted the White House Correspondents’ Dinner.
“Donald Trump has been saying that he will run for president as a Republican, which is surprising, since I just assumed he was running as a joke,” Meyers said. Seated in the audience was a seething Donald Trump.
“Late Night With Seth Meyers” recently celebrated its 10th year on air, outlasting “The Late Show With Stephen Colbert.” Though Trump reportedly had no direct hand in the cancellation of Colbert’s show, Paramount made the move to end the show after Trump sued its news magazine “60 Minutes” over an interview with former Vice President Kamala Harris. The network paid a $16 million settlement to the president. Paramount at the time also happened to be seeking federal approval for a multibillion-dollar sale to Hollywood studio Skydance, which was approved shortly after the settlement.
Last fall, Trump posted on Truth Social that NBC’s parent company, Comcast, should “pay a BIG price” for shows like Meyers’, which he called “political hits.”
“How bad is Seth Meyers on NBC, a ‘network’ run by a truly bad group of people — Remember, they also run MSDNC,” Trump wrote. “I got stuck watching Marble Mouth Meyers the other night, the first time in months, and every time I watch this moron I feel an obligation to say how dumb and untalented he is, merely a slot filler for the Scum that runs Comcast.”
Meyers has yet to comment on the recent attention paid to his show by the White House, but what’s the rush? The host has another four years, according to his contract. Trump also has until 2028, according to that other contract, the Constitution. It’s anyone’s guess which agreement will hold.
