warner bros.

Tom Cruise is one of the bankable stars in Hollywood. But his pull may not be enough to lift his upcoming film “Digger” from a likely hard fall at the box office this weekend.

That would be unwelcome news for Warner Bros., whose movies have largely struggled to connect with audiences this year, in contrast to 2025, when the studio ran up a string of hits such as “Sinners” and “Weapons.”

All of this comes as the studio braces for an uncertain future with Paramount Skydance’s $111-billion acquisition of Warner Bros. Discovery set to close on Tuesday.

“No single film is going to capsize the boat,” said Stephen Galloway, dean of the Dodge College of Film and Media Arts at Chapman University. “However, it’s coming at a precarious time because it follows a series of less-than-successful releases at the very moment when the Warner Bros.- Paramount deal has been greenlit, and everybody — no matter how high up — is terrified for his or her job.”

Matching the success of the 2025 film slate was always going to be a tall order, particularly when so many of Warner Bros.’ movies that year overperformed.

So far this year, the studio’s domestic box office haul is $437.7 million, representing about 5.6% of the total theatrical revenue in the U.S. and Canada, according to Rentrak data.

Last year, Warner Bros.’ total at this time was $1.8 billion, aided by back-to-back successes starting with “A Minecraft Movie,” which went on to become the highest-grossing movie at the domestic box office during that calendar year.

The studio currently does not have any film in the top 20 of domestic box office earners this year, which includes some holdovers from 2025, with Emerald Fennell’s adaptation of “Wuthering Heights” ranking at 21 with $84 million. Bets on films like Maggie Gyllenhaal’s “The Bride!” cratered, while DC Studios’ “Supergirl” misfired.

“Digger” is unlikely to turn things around.

The satire from director Alejandro González Iñárritu about an impending climate change apocalypse has divided critics, yielding very mixed reviews. Tracking predictions for the film’s debut have steadily trended downward and settled between $15 million and $19 million.

That would be a major miss, given the film’s production budget was about $125 million (not counting marketing costs).

“Digger” faces several hurdles. For one, the film has a major twist, which complicates its marketing and makes it difficult to tell audiences what it’s about.

Then there’s Cruise’s nearly unrecognizable performance as Digger Rockwell, an eccentric oil tycoon whose drilling operations have led to the unfolding climate disaster. Clad in prosthetics with a head full of graying hair, Cruise is far from his usual stunts-heavy, bravado-filled roles, which could make his typical audience less likely to come out to theaters, analysts said.

“It has a lot of question marks,” said David A. Gross, who writes the movie industry newsletter FranchiseRe. “It doesn’t look like it’s heading for financial success.”

The film will have value to Warner Bros. beyond its theatrical reception. “Digger” probably will also make money through ancillary revenue streams such as premium video on demand and streaming, industry experts said. And if Cruise wins his much-coveted Oscar for his role as Digger, that is also a plus, Galloway said.

Beyond the fate of “Digger,” Warner Bros.’ theatrical business will be of prime importance to the combined Paramount-Warner company.

Last year, Warner’s studio business, which includes both film and television production, brought in $12.6 billion in revenue. This year, it’s projected to generate $11.1 billion, according to market expectations. On a positive note, Warner Bros. still has its animated “The Cat in the Hat” film releasing in November and the popular “Dune: Part Three” at the end of the year.

The prospects for Warner Bros. should improve next year, when the film and TV studios are expected to amass $11.7 billion in revenue, driven by strong titles including the sequel to “Minecraft” and a new “Lord of the Rings” movie, according to Bernstein research.

Aside from theatrical revenue, Warner Bros.’ film and TV properties have been key drivers of business to HBO Max and will also provide valuable content to Paramount+, particularly as the linear cable networks continue to decline.

“I would argue the studios are the very reason Paramount Skydance is buying Warner Bros.,” said Laurent Yoon, senior analyst at Bernstein. “Everything starts with the studios.”

The combined company is also legally required to release at least 30 films a year as part of a settlement agreement over antitrust claims with 12 state attorneys general, including California’s Rob Bonta. Paramount Chief Executive David Ellison has previously said the two studios would each release 15 films a year.

But the type of content the studios release could change after the merger is completed. Under film chiefs Pam Abdy and Mike De Luca, Warner Bros. developed a reputation for auteur-driven, original stories, particularly after the success of the 2025 slate. Ellison’s slate has trended toward blockbuster fare.

The combined company will also face a massive debt load of more than $80 billion after the merger closes, meaning there may be greater pressure for future films to be hits.

“Ellison is primarily in the business of delivering blockbusters,” Galloway said. “That’s going to be even more important as he tries to right the ship of his debt.”

Last week’s settlement of the antitrust lawsuit between state attorneys general and Paramount Skydance over its planned merger with Warner Bros. Discovery marked a clear victory for David Ellison.

If approved by a judge, the settlement would clear the way for the emerging Hollywood mogul to complete the blockbuster $111-billion purchase after months of uncertainty over whether the deal would overcome intense opposition in Hollywood.

What’s more, Ellison achieved the settlement without having to agree to any so-called structural remedies that California Atty. Gen. Rob Bonta had been seeking.

But Ellison can hardly rest on his laurels. The Paramount Skydance chief executive will have to work hard to repair badly frayed relations with Hollywood talent who fiercely opposed the consolidation of two historic studios as a bad deal for workers. And the 43-year-old tech scion will be constrained by some of the terms that were imposed in the consent decree negotiated with Bonta and other attorneys general.

“I don’t envy David Ellison. You bought this ship, now you’ve got to sail it. And you’re facing threats on all fronts: bad will, everybody rooting for you to fail and operating a business in an incredibly uncertain, challenging time,” said Gabriel Kahn, a professor at the USC Annenberg School for Communication and Journalism. “At the same time, you are going to have to mortgage everything to make these debt payments.”

As part of the deal, Paramount agreed to a slate of requirements that, if it fails to deliver, could induce financial penalties, litigation and other costs.

For one thing, Paramount would have to pay a penalty and divest the Miramax film studio if it does not distribute 30 or more films a year in theaters.

The studio also pledged to spend $300 million more each year on film production in the U.S. and further boost its film spending if the federal government adopts a film tax credit of at least 20%; it agreed not to sell or close its lot on Melrose or the Warner Bros lot in Burbank and to operate them “in a manner consistent with past practices,” until 2031.

Additionally, Paramount is required to establish a board to ensure editorial independence for CNN and CBS News, though it will be appointed by Paramount directors with the authority to remove its members.

Beyond attempting to smooth the industry’s many ruffled feathers, Hollywood’s newest mogul must now also wrestle down an astonishing $80 billion in debt accrued as a result of this highly leveraged merger.

Ellison’s father, billionaire Larry Ellison, late last year agreed to backstop the $47 billion in equity needed to complete the acquisition. Royal families from Saudi Arabia, Qatar and Abu Dhabi have agreed to contribute another $24 billion for an equity stake by assuming some of Ellison’s financial commitments.

The months-long battle was bitter and hard fought and enmity within the industry has yet to subside.

On Tuesday, the morning after Bonta announced the settlement agreement, protesters converged outside of Paramount Skydance’s Melrose Avenue gate criticizing the deal. Some held fake gravestones that read: “RIP local business,” “RIP crew call” and “RIP creativity.”

Two days later, a coalition of several groups including the Committee for the First Amendment, filed an amicus brief asking the court to reject the consent decree, saying that it failed to address the anti-competitive concerns of the state attorneys general and would not protect jobs or consumers.

The sense of betrayal was acute.

“Hate to say it but we all got played,” wrote actor Mark Ruffalo, a leading organizer in Block the Merger, a grassroots organization made up of 1st Amendment advocates and Hollywood celebrities who aggressively opposed it, in a post on X.

Sen. Elizabeth Warren (D-Mass.) repudiated the deal, saying in a statement. that it “enables a handful of billionaires to call the shots in the media.”

The entertainment unions struck more cautionary notes.

SAG-AFTRA, the actors union, wrote in a statement that the deal “addresses some of our deep concerns,” but added, “We hope that the process of engaging with the attorneys general has impressed upon them the fact that in addition to collective bargaining, our members rely on the law to help protect our interests. These are the lowest standards that our employers must meet.”

Bonta, who had spearheaded the antitrust suit, gave a tepid endorsement of the consent decree.

“I want to be clear about something right up front: This settlement is not a vote of support for this merger. It is not a blessing,” he said.

During Paramount’s heated and often contentious legal and political wrangling to wrest control of Warner Bros., many in Hollywood became increasingly apprehensive. Combining two legacy studios, opponents feared, would bring even more job losses to an industry already battered by runaway production.

The skepticism hardened as the Ellisons made several controversial moves after Skydance acquired Paramount last summer. They included agreeing to pay $16 million to settle a lawsuit filed by President Trump over a “60 Minutes” interview segment, canceling the “Late Show With Stephen Colbert,” ending diversity, equity and inclusion programs and appointing Bari Weiss as editor in chief of CBS News, who engaged in a wholesale overhaul that led to a revolt at the esteemed “60 Minutes.”

When the newly formed Paramount Skydance announced its intention to swallow up Warner Bros. Discovery just months later, a massive wave of political pressure and public backlash began.

But the Ellisons dug in.

In January — after Netflix threw a surprise wrench into the Ellisons’ designs on Warner Bros. by offering $72 billion, which the studio accepted — Paramount took Warner Bros. to court and launched a hostile takeover bid.

A month later, Netflix walked away from the deal and collected a $2.8-billion termination fee after the Warners’ board agreed to Paramount’s higher all-cash bid.

But many in Hollywood began agitating against the planned merger and pushing for guardrails and protections.

In April, Block the Merger released an open letter declaring their opposition; its list of professionals across the film and television industry eventually swelled to nearly 6,000 names, including Ruffalo, Jane Fonda, Ben Stiller, Sofia Coppola, Trey Parker and Denis Villeneuve.

“The future of free media and a strong entertainment industry in America is at stake here,” said Norm Eisen, co-founder and executive chair of Democracy Defenders Fund, who also helped lead the Block the Merger campaign.

The Writers Guild of America sued to stop the deal, saying it violated antitrust laws. The union last week settled its lawsuit, citing the costs of continuing the litigation, after Paramount agreed not to lay off writers at CBS Broadcast News for years and to pay $17.5 million to the union’s health fund. Nonetheless, the guild said: “We continue to believe the merger will cause damage to writers and the industry at large.”

Some backed the megadeal, including power broker Ari Emanuel.

The WME executive and chairman and CEO of TKO came out swinging, excoriating the antitrust suit, in an op-ed for the Wall Street Journal in July. “They say they are protecting competition. Their actions threaten to destroy it,” he wrote.

The Ellisons’ ongoing ties with Trump — whose administration has clashed with ABC, CNN and other networks — only deepened the suspicions.

Oracle co-founder Larry Ellison has been a Trump supporter and friend. In addition to political donations, he participated in a Nov. 14, 2020, conference call that discussed ways to challenge Trump’s presidential election defeat.

Both Ellison and his son David reportedly promised the president they would make “sweeping” changes at CNN, which is owned by Warner Bros. Discovery.

In June, David Ellison attended the “UFC Freedom 250” event hosted by Trump on the South Lawn of the White House, and last week he was a guest at the White House state dinner honoring Chinese President Xi Jinping.

Amid the high-level public-facing Trump engagements, Paramount had been quietly trying to allay fears about the relationship to industry insiders.

Two individuals in the entertainment industry, who declined to be named for fear of retaliation, said that Paramount sent emissaries to extend a kind of olive branch, explaining their commitment to Hollywood and downplaying the relationship as a necessary step to get the deal done.

In August, Ellison published an op-ed in the New York Times in which he extolled his lifelong love of movies and laid out his case that he could be “trusted as a steward” of the media giant he was amassing, that includes two institutional news organizations (CBS and CNN) and the legacy studios he wished to combine.

However, his seemingly conciliatory message was undercut that same month when he threatened to relocate Paramount’s base to Tennessee or Texas. Ellison built his Skydance production in Santa Monica.

Across the industry, workers viewed the mixed messaging with wariness and anger.

“If Ellison truly wants to be a steward and do the things that he said he can do and wants to do in that article, I think people would welcome it,” said Pamala Buzick Kim, a co-founder of Stay in LA, the 23,000-member grassroots campaign aimed at boosting local film and television production. “They just have no evidence of it.”

Aside from the bad blood, Ellison’s biggest challenge may be financial.

At a time of massive industry upheaval, most observers believe that the company will have to lay off droves of workers to bring its costs down.

“I will honestly say that the biggest work that they have cut out for them is servicing this debt, and that’s going to guide every decision,” said Kahn, the USC professor.

“Now they’re going to have to fire lots of people in order to reduce costs to be able to make this deal pencil out, and they’re going to be skating on the razor’s edge to make sure that they have enough revenue coming in going forward to service this debt. They have almost no room to maneuver.”

But Paramount has one thing working in its favor: leverage. David (as in Ellison), for better or worse, is now the industry’s Goliath.

“I think temper tantrums can be easily forgotten if the work is there,” said Buzick Kim. “I think most people would be happy to leave it behind them — if the work is there.”

Times staff writers Meg James, Stephen Battaglio and Samantha Masunaga contributed to this report.

It’s a good thing Mogwai don’t seem to age — “Gremlins 3” has been delayed until 2028.

Warner Bros. on Wednesday shared a brief teaser of the upcoming movie on Instagram along with its new release date. “Gremlins 3” will now hit theaters on Oct. 8, 2028, instead of Nov. 19, 2027.

The brief social media clip features Gizmo rustling around inside a backpack in an indiscernible location.

“Uh-oh,” the adorable furry creature says while peering through the unzipped opening as the new release date appears. Hopefully he doesn’t snack on anything he isn’t supposed to while he awaits his big-screen return.

“Gremlins 3” was officially announced by Warner Bros. Discovery boss David Zaslav during an earnings call in 2025. Original “Gremlins” writer Chris Columbus will helm the feature, which is produced by Steven Spielberg’s Amblin Entertainment. Spielberg is an executive producer.

It has been decades since Gizmo’s last big-screen adventure. The Mogwai and his misbehaved progeny debuted in the 1984 holiday classic “Gremlins” and returned in the 1990 follow-up, “Gremlins 2: The New Batch.” Directed by Joe Dante, the films established three key rules for handling the mysterious, big-eared creatures: Don’t get them wet, feed them after midnight or expose them to light. Gizmo’s origin story was explored more recently in the HBO Max animated series, “Gremlins: Secrets of the Mogwai.”

The release date shift follows the recent settlement with California Atty. Gen. Rob Bonta that has cleared the way for Paramount Skydance to acquire Warner Bros. Discovery. According to Deadline, the change is unrelated to the pending merger.