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A waterfront amphitheater roughly twice the size of the Greek Theatre and two-thirds the size of the Hollywood Bowl is set to open this week in Long Beach — and there’s a lot riding on its success.

City leaders hope F&M Bank Amphitheater of Long Beach, located next to the famed Queen Mary, will supplant declining revenues from oil extraction and lead to an uptick in tourism. Concert promoters, meanwhile, see it as filling an important gap in Southern California’s music venue market.

The temporary amphitheater, which has a maximum capacity of 11,000, is meant to be a precursor to a permanent “Long Beach Bowl,” which is being pitched as the largest waterfront venue on the West Coast. The site opens June 6 with a performance by native son Snoop Dogg, and is expected to last for up to 10 years.

The new amphitheater represents a years-long dream of Mayor Rex Richardson, who began championing an outdoor performance venue on the waterfront in 2023. Soon after the closure of Irvine’s FivePoint Amphitheatre in October of that year, he accelerated those plans by proposing this facility. The general feeling was that Irvine’s loss could be Long Beach’s gain.

“This will be a place where memories are made, where music brings people together and where our city shows up on the big stage,” he said during a January groundbreaking. “The amphitheater represents direction to invest in our city’s future, to embrace our creative economy [and] to shape how people experience Long Beach for generations to come.”

Good vibes by the water is the driving energy behind the temporary venue.

(Eric Thayer / Los Angeles Times)

While Los Angeles and Orange County have no shortage of cavernous indoor arenas, the region has recently lacked a proper “summer shed” capable of hosting many national amphitheater tours, said Nick Storch, head of global artist development for booking agency Independent Artist Group. Those tours typically play venues larger than the Greek, Irvine’s Great Park Live or Costa Mesa’s fairgrounds-adjacent Pacific Amphitheatre, but smaller than the Hollywood Bowl.

Such tours, Storch said, are of “massive” importance to the concert industry. “With amphitheaters, it’s not just the music — it’s the experience of being outside and watching a concert, getting a bite to eat with your friends and all those kinds of things,” said Storch, whose agency’s clients Motley Crue and Five Finger Death Punch will perform at the F&M Bank Amphitheater in September.

“FivePoint was a great venue to help artists that are in that in-between stage, and not fully ready for arenas,” he said. “Long Beach having an amphitheater is going to grow the market again.”

Amphitheaters are also crucial to veteran artists with established fan bases. The long-running hard rock band Tesla — who also will perform at the F&M Bank Amphitheater in September — has not played a show in Los Angeles or Orange counties since the closure of FivePoint, which hosted the group twice.

Brian Wheat, the band’s bassist and manager, said he’s excited the new venue will help change that. “Sheds are great in the summertime, and outdoor summer gigs always create a great atmosphere for both bands and fans,” he said.

Much like the F&M Bank Amphitheater, FivePoint Amphitheatre was designed to serve as a temporary venue following the closure of Irvine Meadows Amphitheatre, which operated from 1981 to 2016. (From 2000 to 2014, it was known as Verizon Wireless Amphitheater.)

At 11,000 seats, the amphitheater is roughly two-thirds the size of the Hollywood Bowl. Its permanent replacement will be “architecturally iconic,” said Mayor Rex Richardson, while this temporary version is likened to a “summer shed.”

(Eric Thayer / Los Angeles Times)

From its opening in October 2017 until its closure, FivePoint hosted nearly 500 concerts, including artists such as KISS, Dave Matthews Band, Charlie Puth, Morgan Wallen and Luke Combs.

Venue operator Live Nation — which manages more than 300 facilities across the country — initially hoped to build a permanent amphitheater nearby, but scrapped those plans in 2023 after the Irvine City Council ended negotiations. Soon after, Live Nation announced the venue would shutter.

After learning of Live Nation’s fallout with Irvine, Richardson and members of his economic development team attended the final FivePoint concert, a performance by the Zac Brown Band, to “explore the feasibility if we were to do the same thing.”

Three months later, Richardson announced plans to build a temporary amphitheater in Long Beach to bridge the gap until a permanent facility — which he envisions as an “architecturally iconic and significant” waterfront venue akin to San Diego’s Rady Shell at Jacobs Park — can be permitted, financed and constructed.

The site’s location is central to its appeal, said Dan Hoffend, executive vice president of North American venues for Legends Global, the operator for F&M Bank Amphitheater. “If you sit in the very top row — what you would consider the worst seat in the house — it’s a spectacular view,” he said. “The Queen Mary is sitting there in all its glory. You’re looking across the harbor. What would be perceived as the worst seat is actually the best seat because you see it all.”

Long Beach Mayor Rex Richardson, left, and amphitheater general manager Tra Jones sit in the stands. Even from the nosebleeds, you still have a view of the waterfront at the F&M Bank Amphitheater.

(Eric Thayer / Los Angeles Times)

Tra Jones, general manager of the new amphitheater and a Long Beach native, said he’s striving to make it feel less stopgap and utilitarian than FivePoint.

“It doesn’t have a temporary feel at all,” he said. “We looked at all our surroundings and said, ‘What does this look like from a stylistic point of view?’ We leaned into the port/SteelCraft vibe — a very cool industrial look. When you walk in, you’re experiencing a vibe. That’s what we want to resonate with concertgoers coming here.”

The word “vibe” also pops up frequently in conversation with Richardson. Under his watch, Long Beach recently started branding itself as “Vibe City,” which he said is an attempt to encapsulate the charm of L.A. County’s second-largest city, and the state’s seventh-largest.

“Long Beach is special, but it’s hard to explain why if you haven’t been here,” he said. “Because you have to experience it for yourself, the best way to describe it is that it’s a vibe.”

Still, Richardson is aware that vibes can only go so far. During an April meeting with residents of downtown Long Beach, attendees were more interested in discussing homelessness and a recent uptick in traffic fatalities than how a new concert venue might add to the city’s cultural cachet. Some downtown residents have circulated a petition regarding noise-related concerns.

“The job of the mayor is to meet the needs of your residents today — keeping a roof over your head, making sure it’s safe to walk down the street, making sure you have access to amenities and services in your community — but also to think about the future,” he said.

That means finding a way to offset revenues from oil extraction, which currently finance many municipal services, and are projected to drop from more than $50 million annually to around $21 million by 2035. According to Richardson, the new amphitheater — managed by Legends Global, but owned by the city — will help cover that shortfall. The venue is projected to be profitable within five years and generate nearly $29 million in revenue by 2036.

Oil revenues, which pay for city services, are projected to drop by more than half. The amphitheater is being pitched as a budget gap solution.

(Eric Thayer / Los Angeles Times)

“We were fortunate that revenue from oil provided a lot of our services and built our beautiful waterfront, but as California moves away from oil production, we have to plan a more sustainable future by investing in what we know will be here in the long haul,” Richardson said. “In order to do that, we have to invest in arts and culture and tourism.”

Richardson is betting on music at a time when other cities — including Los Angeles — are doubling down on sports, warehousing or data centers. The amphitheater is also meant to remind the world of the city’s impact on pop culture.

From War to Warren G and Sublime to Snoop, Long Beach has a rich musical history. The city hosted the first concerts by the Beach Boys and No Doubt, while Rock & Roll Hall of Famers Elvis Presley, the Eagles and Iron Maiden all graced the stage of the Long Beach Arena.

While that venue currently holds more conventions than concerts, Long Beach has hosted notable outdoor music festivals in recent years, including Warped Tour, Day Trip and Dreamstate. Richardson believes the success of those events helped prove the city’s viability as a concert destination.

“This is the first step toward a legacy of leaving our city in a more economically resilient position,” Richardson said. “At every big turn in our city’s economy, we’ve leaned on arts as a way forward, and this is no different.”

Even the bleacher seats represent Long Beach pride at F&M Amphitheater.

(Eric Thayer/Los Angeles Times)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Carman writes for Bloomberg.

SACRAMENTO — Hours before Gov. Gavin Newsom is expected to present his budget plan on Thursday, his office released new projections of a $16.5-billion state revenue windfall over three years and offered a rosy outlook on California’s fiscal position during his final year in office and the year after.

Newsom’s office provided few details about his plan to reduce spending or other adjustments that he would need to propose in combination with the increase in revenue to eliminate projected deficits from 2026-27 through 2027-28.

The unusual early look at his budget proposal comes as Newsom begins to wind down his time at the state Capitol and considers a run for president in 2028.

Two weeks ago, the Legislative Analyst’s Office issued an analysis of state spending that said California could not, in the long term, afford to pay for existing services and the new programs that Newsom and Democratic lawmakers have enacted since he took office in 2019. State spending has outpaced California’s strong revenue growth by about 10%, creating a perennial budget shortfall, defined as a structural deficit.

California’s spending problem threatens to define Newsom’s fiscal legacy and could provide ripe fodder for his critics. If projections of the unexpected tax windfall, which analysts attribute to stock market interest in artificial intelligence companies, bear out, the upswing could mark a lucky break for Newsom.

The governor has largely resisted adopting new across-the-board tax increases or sharply curtailing his expensive policy proposals in order to align state spending with revenue.

His budget proposal includes a call to increase taxes on corporations by limiting state tax credits to no more than $5 million, or 50% of a company’s tax liability, beginning in the tax year 2027. No estimates were offered to explain how much revenue the new cap would bring in to support the state budget.

The preview of his budget has several new spending proposals, including providing $300 million to help low-income Californians keep $0 monthly premiums on healthcare coverage through the Affordable Care Act in response to cuts by the federal government, as well as $100 million to help wildfire victims afford construction loans to rebuild their homes. Two days before Mother’s Day, Newsom also introduced a plan to provide 400 free diapers for every California newborn at select hospitals beginning this summer.

Newsom is expected to present his budget in more detail late Thursday morning in Sacramento.

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

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

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

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

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

Allen will become chairman and chief executive.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Published on
06/05/2026 – 15:39 GMT+2

The surge in jet fuel prices has become a primary concern for the European travel industry, with Lufthansa finding itself at the centre of this crisis.

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According to Lufthansa’s latest earnings report, the airline expects an additional €1.7 billion ($2bn) fuel cost burden in 2026 as soaring jet fuel prices continue to weigh on the industry.

The need to avoid certain airspaces has led to longer flight times, which naturally increases consumption. These adjusted routes also require more staff hours and higher maintenance cycles, adding layers of complexity to an already strained global supply chain.

As reported by Euronews, global airlines have already cancelled approximately 13,000 flights this May, while Lufthansa alone has axed 20,000 short-haul flights through to October in a bid to cut fuel consumption.

This reduction in capacity is a direct response to the unsustainable cost of operating older, less fuel-efficient aircraft during price peaks.

While Lufthansa has managed to stay profitable, the jet fuel price spikes have forced the firm to advise passengers to book their holidays as early as possible to avoid further surcharges.

The company is currently investing heavily in its “fleet modernisation” programme to mitigate these risks in the long term, though the immediate impact of fuel volatility continues to weigh on the balance sheet.

Lufthansa remains committed to its financial targets, but the volatility of the global oil market remains the largest variable in its 2026 outlook.

“We are satisfied with the first quarter […] at the same time, the current situation compels us to rigorously examine every lever available to reduce costs, improve efficiency and mitigate risks in order to maintain our ability to act decisively. Our annual profit will likely be lower than originally anticipated,” CFO Till Streichert stated.

The Lufthansa Group has announced a landmark financial performance, revealing that it generated the highest revenue in its history in 2025. Revenue rose by 5% compared with the previous year to €39.6 billion.

According to the latest figures, the airline group also saw its operating profit grow by 20% compared with 2024, highlighting a robust recovery in passenger demand.

In the first quarter of 2026, year-on-year revenue climbed 8% despite challenges linked to the conflict involving Iran, including €1.7 billion in additional costs caused by volatile jet fuel prices and the suspension of dozens of routes.

The firm kept its capacity broadly stable with slight growth in long-haul traffic compensating for capacity reductions in short and medium-haul segments.

Lufthansa Technik and Lufthansa Cargo also significantly contributed to earnings with demand for maintenance, repair and overhaul services increasing, as well as through the marketing of ITA Airways’ cargo space.

Global demand for air travel remains high and continues to prove resilient even in times of crisis, as Lufthansa Group again expects a strong summer travel season.

“In the first quarter, we significantly improved on the previous year’s financial results […] but the ongoing crisis in the Middle East, combined with rising fuel costs and operational constraints, poses enormous challenges for the world as a whole, for global air travel and for our company as well,” CEO Carsten Spohr stated.

“However, we are resilient in our ability to absorb these impacts. This applies both to our above-average hedging against fuel price fluctuations and to our multi-hub, multi-airline strategy, which provides us with greater flexibility in our route network and fleet development,” Spohr added.

Walt Disney Co.’s theme parks and cruise line business is holding steady despite national concerns about discretionary consumer spending and higher gas prices.

The Burbank media and entertainment giant’s experiences division reported $9.5 billion in revenue in its fiscal second quarter, up 7% compared with the same period a year ago.

The increase was due to higher guest spending at Disney’s domestic parks and experiences, which reported a 6% bump in revenue to $6.9 billion, and more capacity on the company’s cruise line with the introduction of two new ships. The segment saw a 5% increase in operating income to $2.6 billion for the three-month period that ended March 28.

Disney’s theme parks segment was under close scrutiny given the national conversation about rising consumer costs and gas prices due to the U.S.-Iran war. Analysts had wondered whether consumers would tighten their belts and forgo vacations given the higher travel costs.

Disney did see a 1% decline in attendance at its U.S.-based parks compared with the prior year, which the company attributed to “continued softness” in international visitors, but said it was starting to move past those issues. Company executives have previously said Disney pivoted marketing and promotional efforts to attract local visitors.

Last quarter, executives indicated that results in the company’s second fiscal quarter could be affected, in part, by “international visitation headwinds,” a nod to the lower number of foreign visitors now traveling to the U.S.

Though the heightened economic uncertainty around the world could have a “potential impact” on the business, Disney Chief Executive Josh D’Amaro and Chief Financial Officer Hugh Johnston said in a shareholder letter Wednesday that the company was “encouraged by current demand.” The company expected that fiscal third-quarter domestic attendance numbers would improve, they wrote.

The company’s overall earnings were powered by its entertainment business, which posted revenue of $11.7 billion, up 10% compared with the prior year’s quarter.

That growth was driven by big gains for Disney’s streaming services — Disney+ and Hulu — which raked in nearly $5.5 billion in revenue, an increase of 13% compared with 2025, thanks to higher subscription fees from user growth and more advertising revenue. Operating income for the streaming business jumped 88% to $582 million.

Disney’s entertainment segment also had a stronger quarter at the theatrical box office, with standout performances from 20th Century Studios’ “Avatar: Fire and Ash,” the animated sequel “Zootopia 2” and Pixar’s “Hoppers.”

Overall, the company reported $25.2 billion in revenue, a 7% bump from the prior year. Income before income taxes totaled $3.4 billion, an increase of 9% compared with the same period in 2025, while operating income rose 4% to $4.6 billion. Earnings per share, excluding certain items, was $1.57, compared with $1.45 a year earlier.

Disney’s sports segment, which includes ESPN, reported revenue of $4.6 billion, a 2% increase from the same period in 2025. It brought in operating income of $652 million, a 5% slide that the company attributed to higher sports rights costs and the absence of UFC pay-per-view revenue compared with last year.

Disney also alluded to the company’s view of artificial intelligence as a “meaningful long-term opportunity,” saying it could play a role in content creation and production, monetization, workforce productivity, consumer and guest experiences and enterprise operations.

“At the same time, we are committed to implementing AI in a way that keeps human creativity at the center of everything we do and respects creators and the value of our intellectual property,” D’Amaro and Johnston said in the shareholder letter.

After noting OpenAI’s closure of the text-to-video AI tool Sora, which Disney had planned to invest in, D’Amaro and Johnston said the company will “continue to explore” commercial opportunities with OpenAI and other companies.

Paramount Skydance Chairman David Ellison defended his commitment to release 30 movies a year once his media company swallows Warner Bros. Discovery — a goal that some industry observers view as overly ambitious.

During a Monday call with analysts to discuss Paramount’s first-quarter earnings, the tech scion said the target was achievable because his management team would maintain current levels of production. Paramount has doubled its film release capacity to 15 films this year, matching the number of theatrical releases planned by competing Warner Bros.

“The two companies are actually making 30 films to date,” Ellison said. “We really view our pending acquisition of Warner Bros. Discovery as a powerful accelerant to our strategy.”

The company said it was on track to finalize its Warner takeover by the end of September. The $111-billion deal would transform the smaller Paramount into an industry titan with prestigious programming, including Harry Potter, “Game of Thrones,” “Euphoria,” as well as its current slate of Taylor Sheridan-produced franchises, including “Yellowstone” and “Landman.” The combined company also would own dozens of popular TV networks, including CBS, CNN, Comedy Central, Food Network and HGTV.

But the proposed merger would saddle the combined company with $79 billion in debt, stoking fears that Paramount would need to make steep cost cuts to balance such a large debt load. During the quarter, Paramount lined up banks and other institutional investors to provide bridge financing to help pull off the transaction, the company said.

“We’re pleased with the momentum and will continue to take the necessary steps to bring this deal to completion,” Ellison told analysts.

Late last month, Warner Bros. Discovery stockholders overwhelmingly voted in favor of the deal, which will pay $31 a share to Warner investors. The company now must secure regulatory approvals in the U.S. and abroad, and that process is well underway, Paramount said.

Paramount has asked the Federal Communications Commission for permission to exceed a cap on foreign ownership for U.S. media companies. Ellison’s company is expecting $24 billion from three Middle Eastern royal families, who would become part owners of the combined entity. Those total funds will represent about 49% of equity in that new company, exceeding the current foreign ownership cap of 25%.

More than 4,000 filmmakers, actors and industry workers, including Bryan Cranston, Connie Britton, Kristen Stewart, Jonathan Glazer and Jane Fonda, have signed an open letter asking California Atty. Gen. Rob Bonta and other regulators to block the deal, saying it “would reduce the number of major U.S. film studios to just four.”

Late last week, a small group of consumers sued to block Paramount Skydance’s acquisition of Warner Bros. Discovery and unwind Ellison’s Skydance Media’s takeover of Paramount, alleging that both deals reduce marketplace competition.

For the January-March quarter, Paramount’s earnings beat Wall Street’s expectations. Revenue grew 2% to $7.3 billion compared with the first quarter of 2025.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.1 billion, helped in part by growth in its streaming services unit. Paramount+ increased its revenue by 17% to nearly $2 billion, compared with the year earlier period when it generated $1.7 billion. The service added 700,000 subscribers, bringing the total to nearly 80 million.

With Warner’s HBO Max streaming platform, the combined service would boast more than 200 million subscribers.

Paramount reported first-quarter net earnings of $168 million, or 15 cents per share, compared with $152 million in 2025, which occurred before Skydance acquired the media company in August.

Executives pointed to “Scream 7,” a late February release that has topped $200 million in global ticket sales, as a success story. Studio revenue grew 11% to $1.28 billion for the quarter.

Television networks revenue declined 6% to $3.7 billion as Paramount’s cable channels continue to contend with the loss of cable cord-cutters, which reduces the company’s collections from pay-TV providers. Nonetheless, Paramount pointed to the strength of Sheridan’s “Landman,” starring Billy Bob Thornton, Ali Larter, Sam Elliott and Demi Moore, and the strength of the CBS television network, which currently has 13 of the broadcast industry’s top 20 prime-time shows, including “60 Minutes,” “Marshals,” and “Tracker.”

The company told analysts it would achieve $30 billion in revenue for the full year and $3.8 billion in adjusted EBITDA. Paramount said it would also make $2.5 billion in cost-cuts by the end of this year and reduce expenses by $3 billion in 2027.

Paramount said it ended the quarter with $1.9 billion in cash and cash equivalents. It also was carrying $15.5 billion in debt. The company had to draw $2.15 billion from its revolving credit facility to pay Netflix a $2.8-billion termination fee that Warner Bros. Discovery had agreed to pay under a previous deal to sell the company to Netflix.

Paramount released its earnings after Monday’s trading day. Its shares closed at $11.13, basically unchanged.