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Deal or no deal for Paramount? Here are the options on the table

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Deal or no deal for Paramount? Here are the options on the table

Time is running out for Paramount Global and Skydance Media to reach a deal combining their entertainment empires within the 30-day exclusive negotiating window that closes Friday, and it appears likely that the week will pass without an agreement on a transaction.

Paramount, controlled by Shari Redstone , and Skydance, helmed by film producer David Ellison, have been trying to hammer out a complicated deal that would leave Ellison in control of the storied media giant. And so far, no agreement has been struck.

What has long looked like Paramount Global’s most viable buyout option has been the subject of weeks of palace intrigue, plagued by an investor rebellion and corporate shakeups. Paramount’s stock fell roughly 7% on Friday amid reports that the company was getting cold feet about Skydance’s offer.

New York-based research firm LightShed Partners said Friday that it expects the bargaining deadline to arrive sans agreement, with another bid from Sony Pictures Entertainment and Apollo Global Management on deck. The negotiation period is not likely to be extended, leaving the door open to other options.

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The Times has contacted Paramount Global for comment. A spokesperson for Paramount’s mergers and acquisitions committee declined to comment.

The Skydance scenario

Since reports surfaced in January that Ellison’s Skydance was exploring an all-cash deal to acquire National Amusements Inc. — the company that holds 77% of Paramount Global’s voting stock — things have gotten messy.

Over the past month, Paramount has been negotiating with Skydance, which has linked up with investment firms RedBird Capital and KKR to take over National Amusements, which would give it control of Paramount, owner of the Paramount Pictures movie studio on Melrose Avenue, broadcast network CBS and cable channels MTV and Nickelodeon.

The talks spurred a revolt led by Paramount Global investors who expressed concerns that the deal on the table would largely benefit Paramount’s nonexecutive chairwoman, Redstone, at the expense of regular shareholders.

The investor uprising caused Paramount shares to plummet and prompted several of the company’s directors to step down. In an effort to quell the backlash, Skydance recently upped its offer with a cash infusion for Paramount and by setting aside funds specifically for Paramount’s nonvoting shareholders, which would probably reduce Redstone’s take.

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All of this corporate turmoil culminated Monday in the termination of Paramount Global Chief Executive Bob Bakish, whose opposition to the Skydance deal did not sit well with Redstone.

Bakish preferred another Paramount Global suitor, private equity firm Apollo Global Management, which joined forces this week with Sony Pictures Entertainment to submit a $26-billion all-cash bid for the entertainment empire.

Sony-Apollo hover around the hoop

While this Paramount-Skydance saga has been unfolding, Apollo and Sony have officially entered the ring as a team.

Culver City-based Sony has offered to become a majority shareholder in the entertainment company, with Apollo as a minority owner.

Because Sony Corp. is based in Tokyo, Apollo would probably have to assume control of Paramount’s CBS network in order to abide by Federal Communications Commission rules that restrict foreign ownership of broadcast TV stations — a technicality that could make the offer less attractive to a company reluctant to divvy up its assets, according to analysts at LightShed.

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Such a deal, while cleaner from a financial perspective, would cause upheaval in Hollywood. It would probably result in mass layoffs, reducing the number of major movie studios from five to four.

What if none of the above?

After Bakish was ousted, Paramount Global appointed three of its top entertainment executives — Paramount Pictures CEO Brian Robbins, CBS CEO George Cheeks and Showtime/MTV Entertainment Studios head Chris McCarthy — to lead the company in an “office of the CEO” capacity.

If a Paramount-Skydance merger fails to pass, analysts at LightShed Partners predict Paramount will move forward with its leadership trifecta, focus on restructuring its business and eventually revisit mergers and acquisitions discourse later this year or in 2025. The regulatory landscape is expected to become clearer after the 2024 presidential election.

The LightShed analysts said they doubt that Paramount will immediately pivot to a Sony-Apollo deal in the event that talks with Skydance fall apart.

“We’re only four days in so there’s not a lot I can say,” Cheeks wrote in a memo to Paramount Global staff. “But … Brian, Chris and I are in the process of finalizing our strategic plan that we’re going to roll out as soon as possible.”

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

Movie Reviews

Michael Jackson documentary set to release after massive re-write

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Michael Jackson documentary set to release after massive re-write
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‘Michael’ — a new movie about the King of Pop – is drumming up big buzz. The film was produced in-part by the co-executors of the late singer’s estate, and has some critics questioning whether it is too focused on sanitizing the singer’s troubled image.

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‘Clayface’ trailer teases DC Studios’ first proper horror movie

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‘Clayface’ trailer teases DC Studios’ first proper horror movie

The DC universe is going full on body horror.

DC Studios released its first trailer for “Clayface” on Wednesday, giving audiences a glimpse of the gruesome origins of the shape-shifting Batman villain.

Set to an eerie rendition of the Flaming Lips’ “Do You Realize??,” the teaser flashes among various images of up-and-coming Hollywood actor Matt Hagen (portrayed by Tom Rhys Harries) before and after a violent encounter as the camera slowly zooms toward his haunted eyes and bloody, bandaged face as he is recovering on a hospital bed.

The clip also includes footage of Hagen’s clay-like, malleable face, which he appears to gain after some sort of scientific procedure.

According to the DC description, “Clayface” will see Hagen transformed into a “revenge-filled monster” and explore “the loss of one’s identity and humanity, corrosive love, and the dark underbelly of scientific ambition.”

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“Clayface,” set for an Oct. 23 release, will be the third DCU film to hit theaters since James Gunn and Peter Safran took over DC Studios and reset (most of) its comic book superhero franchise. The studio’s upcoming slate also includes “Supergirl,” which will hit theaters June 26, as well as “Man of Tomorrow,” the sequel to Gunn’s 2025 blockbuster “Superman,” announced for 2027.

Who is Clayface?

Clayface is a DC Comics villain usually affiliated with Batman. The alias has been used by a number of different characters over the years, but they all usually possess shape-shifting abilities due to their clay-like bodies. Created by Bill Finger and Bob Kane, the original Clayface was a washed-up actor turned criminal who first appeared in a 1940 issue of “Detective Comics.”

Matt Hagen was the name of the second Clayface, who first appeared in an issue of “Detective Comics” in the 1960s. He was the first to have shape-shifting powers, which he gained after encountering a mysterious radioactive pool of protoplasm.

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Other versions of Clayface have been introduced in various media since.

Who is in ‘Clayface’?

The upcoming film stars Tom Rhys Harries as rising Hollywood actor Hagen. The cast also includes Naomi Ackie, who is seen in the trailer, reportedly as the scientist Hagen turns to for help following his disfigurement. Also set to appear are David Dencik, Max Minghella and Eddie Marsan, as well as Nancy Carroll and Joshua James.

Who are the ‘Clayface’ filmmakers?

Director James Watkins, known for horror films including “Speak No Evil” (2024), is helming “Clayface.” The script was written by prolific horror scribe Mike Flanagan (“The Haunting of Hill House,” “Doctor Sleep”) and Hossein Amini (“The Snowman”).

The producers are Matt Reeves, Lynn Harris, James Gunn and Peter Safran. Exective producers include Michael E. Uslan, Rafi Crohn, Paul Ritchie, Chantal Nong Vo and Lars P. Winther.

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Miyamoto says he was surprised Mario Galaxy Movie reviews were even harsher than the first | VGC

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Miyamoto says he was surprised Mario Galaxy Movie reviews were even harsher than the first | VGC

Nintendo’s Shigeru Miyamoto says he’s surprised at the negative critical reception to the Super Mario Galaxy Movie.

As reported by Famitsu, Miyamoto conducted a group interview with Japanese media to mark the local release of The Super Mario Galaxy Movie.

During the interview, Miyamoto was asked for his views on the critical reception to the film in the West, where critics’ reviews have been mostly negative.

Miyamoto replied that while he understood some of the negative points aimed at The Super Mario Bros Movie, he thought the reception would be better for the sequel.

“It’s true: the situation is indeed very similar,” he said. “Actually, regarding the previous film, I felt that the critics’ opinions did hold some validity. “However, I thought things would be different this time around—only to find that the criticism is even harsher than it was before.

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“It really is quite baffling: here we are—having crossed over from a different field—working hard with the specific aim of helping to revitalize the film industry, yet the very people who ought to be championing that cause seem to be the ones taking a passive stance.”

As was the case with the first film, opinion is divided between critics and the public on The Super Mario Galaxy Movie. On review aggregate site Rotten Tomatoes, the film currently has a critics’ score of 43% , while its audience score is 89%.

Shigeru Miyamoto says he was surprised by Mario Galaxy Movie reviews.

While this is down from the first film’s scores (which were 59% critics and 95% public) it does still appear to imply that the film’s target audience is generally enjoying it despite critical negativity.

The negative reception is unlikely to bother Universal and Illumination too much, considering the film currently has a global box office of $752 million before even releasing in Japan, meaning a $1 billion global gross is becoming increasingly likely.

Elsewhere in the interview, Miyamoto said he hoped the film would perform well in Japan, especially because it has a unique script rather than a simple localization as in other regions.

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“The Japanese version is a bit unique,” he said. “Normally, we create an English version and then localize it for each country, but for the first film, we developed the English and Japanese scripts simultaneously. For this film, we didn’t simply localize the completed English version – instead, we rewrote it entirely in Japanese to create a special Japanese version.

“So, if this doesn’t become a hit in Japan, I feel a sense of pressure – as the person in charge of the Japanese version – to not let [Illumination CEO and film co-producer] Chris [Meledandri] down.

“However, judging by the reactions of the audience members who’ve seen it, I feel that Mario fans are really embracing it. I also believe we’ve created a film that people can enjoy even if they haven’t seen the previous one, so I’m hopeful about that as well.”